Diffusion of innovation

‡ it can be defined as the process by which the innovation spreads through all the strata of consumers, which is possible when the consumer accepts the innovated product over a period of time

Innovation depends on:

‡ ‡ ‡ ‡ ‡ Channels of communication Speed of communication Social structure Values Culture of the society

‡ Process of diffusion may lead people to adopt the product, but, finally at the end of the diffusion process, the product may be rejected ‡ Factors affecting process of diffusion: 1. Nature of diffusion (revolutionary diffusion) 2. Method of communication(informal channels are effective than the formal channel) 3. Social environment( farm communitycomputer & rice seed) 4. Time dimension ( fashion trends are fast)

Categories of adopters:
‡ Innovators very few in number but extremely adventurous people. They are risk loving people ‡ Early adopters- opinion leaders, role models and have capability to influence others, checkout before accepting the innovation ‡ Early majority- they follow the opinion people and themselves can ever take up the position of influencer or leader.

‡ Late majority- their adoption takes place after the product is established in the market. ‡ Late adopters- they are so traditional in their attitude where the learning process requires understanding of new products

Factors influence process of diffusion:

‡ Relative advantage- to what extent the new product is better or superior to the existing product. ‡ comparability- innovated product value with past experience eg fairness cream ‡ Complexity- the degree of new product relative difficulty to understand and use.

‡ Divisibility or trial ability- it is mainly used for majority adopters who will first try the product and if they are not satisfied, will get back their money eg: money back offer ‡ Communicability- the extent to which the main attributes of the product are observable will help the process of diffusion.