How innovative is a new product to consumers? Why is it perceived to be innovative and does perceived innovativeness affect consumer intention to adopt new products? Some investigations have explored consumers’ perceptions of innovativeness, but this research is fragmented and contains no comprehensive definition and examination of the construct of “consumer perceived innovativeness” (CPI—how innovative the product is from the consumer’s perspective). This study proposes a new conceptualization for CPI based upon extant theory, qualitative research and two quantitative pilot studies. It then identifies and tests key causes and consequences of CPI on a national sample of consumers using a range of different innovations. This allows addressing the “so what?” (consequences) and the “how do you manage it?” (causes). The research extends work in the new product development area by (i) defining CPI within its nomological net and proposing an operational measure based on psychometric testing, (ii) suggesting that affect is more usefully viewed as a consequence of CPI rather than a dimension, and (iii) highlighting the important, yet often overlooked role, of perceived technology newness. These findings provide managers with a useful and practical theory for understanding and influencing consumer perceptions of a product’s innovativeness.