CHAPTER 16

Adoption of, Resistance to, and Diffusion of

Innovations

CHAPTER SUMMARY
Innovations are products, services, ideas, or attributes perceived to be new by consumers in a market
segment. Innovations can be characterized as functional, symbolic, and/or hedonic/aesthetic in nature.
Innovations also vary in the degree of behavioral change their adoption requires. A continuum of
innovativeness in products ranging from continuous to discontinuous innovations can be identified.
Innovations may represent fads, fashions, or classics, and hence may exhibit a short, moderate, or long
life cycle. Product life-cycle length may be fostered by enhancing the breadth of the innovation and by
encouraging use innovativeness in consumers.
There are three key issues of importance to marketers introducing innovations. First is breaking down
consumers resistance to innovations, second is facilitating consumers adoption of the innovation, and
third is affecting the diffusion of the innovation through the marketplace. A high- (vs. low-) effort
hierarchy-of-effects adoption process occurs when the innovation is seen as economically, physically,
socially, or psychologically risky. Some individuals called innovators adopt products independently of
the decisions of others. Special marketing efforts may be geared toward innovators since their adoption
directly or indirectly influences the adoption of other consumers (by word of mouth or social
modeling).
Characteristics of the innovation and the social system in which it is introduced affect resistance,
adoption, and diffusion. First resistance is more likely to be overcome when the innovation is perceived
to provide value (i.e., involve a relative advantage, low cost, and low switching costs), involve minimal
consumer learning (i.e., high compatibility with existing needs, values, and behaviors; trialability; and
low complexity), involve relatively high certainty, and be viewed as high in social relevance,
legitimacy, and adaptability. Consumers perceptions of the characteristics of the innovation can in turn
be affected by marketing decisions.
Resistance, adoption, and diffusion are also affected by the characteristics of the social system in which
the innovation operates. The more dense the social network and the more homophilous the social
system, the more likely information will be transmitted from adopters to nonadopters. This information
transmission may directly affect adoption likelihood. Although they offer relative advantages,
innovations can result in negative social and economic consequences.

CHAPTER LEARNING OBJECTIVES

At the end of this chapter, students will be able to:
1. Describe how innovations can be classified in terms of the type of innovation, the type of benefits
offered, and the breadth of the innovation.
2. Explain how consumers adopt an innovation, why they might resist adoption, and why marketers
must understand the timing of innovation adoption decisions.

2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
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226 Chapter 16: Adoption of, Resistance to, and Diffusion of Innovations
3. Define diffusion and discuss how diffusion curves relate to the product life cycle.
4. Outline the main factors that affect adoption, resistance, and diffusion, and show how marketers
can use their knowledge of these factors to market more effectively.

CHAPTER OUTLINE
I. Innovations
A. Defining Innovation
1. An innovation is a product, service, attribute, or idea that is perceived as new by
consumers within a market segment, and that has an effect on existing consumption
patterns.
2. Innovations are classified by (1) the type of innovation, (2) the type of benefits offered,
and (3) the breadth of innovations.
B. Innovations Described by Degree of Novelty
1. Innovations Characterized by Degree of Novelty
a) Continuous innovation has limited effect on existing consumption.
(1) Most new products on the market are continuous innovations.
b) Dynamically continuous innovation has a more pronounced effect on our
consumption practices.
(1) Often these innovations involve new technology.
c) Discontinuous innovation is a product so new that we have never known anything
like it before.
2. Innovations Characterized by Benefits Offered
a) Functional innovations offer functional performance benefits over existing
innovations.
b) Aesthetic or hedonic innovations appeal to aesthetic, pleasure seeking, and/or
sensory needs.
c) Symbolic innovations are products, services, attributes, or ideas that have new
social meaning.
3. Innovations Characterized by Breadth
a) Refers to the new and different uses to which a new product is put
II. Adoption of Innovations and Resistance to Adoption
A. Whether Consumers Adopt an Innovation
1. Resistance reflects consumers desire not to purchase the innovation, even in the face
of pressure to do so.
a) Separate concept from adoption
B. How Consumers Adopt Innovations
1. High-Effort Hierarchy of Effects
a) The consumer thinks carefully about the product, gathers as much information
about it as possible, and forms an attitude based on this information.
b) Based on the attitude, the consumer may try the product and, if the trial
experience is favorable, may adopt the product.
2. Low-Effort Hierarchy of Effects
a) When the new product involves less risk and when fewer people are involved in
the buying process, decision-making may be less involved.
b) Consumers engage in trial after they become aware of the innovation.
c. Assuming attitudes are positive, adoption may follow.
C. Marketing Implications
1. Marketers need to know if consumers adoption decisions are based on high- or low-
effort adoption.

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 Chapter 16: Adoption of, Resistance to, and Diffusion of Innovations 227
a)
If the adoption process is low-effort, marketers need to do all they can to
encourage trial because trial affects brand attitudes.
b) If the adoption process is high-effort, marketers need to do all they can to reduce
the perceived risk associated with the innovation.
D. Timing of Innovation Adoption Decisions
1. Innovators2.5 percent
a) Venturesome
b) Technology enthusiasts
2. Early adopters13.5 percent
a) Respectable
b) Visionaries
3. Early majority34 percent
a) Deliberate
b) Pragmatic
4. Late majority34 percent
a) Traditional
b) Wary of progress
5. Laggards16 percent
a) Skeptical
6. Some researchers say these categories do not exist for all types of innovations.
E. Marketing Implications
1. Innovators are important to marketers because they adopt new products independently
of others opinions.
2. Demographics
a) Innovators tend to be younger.
b) Have more discretionary income and education
c) Culture of origin affects willingness to accept innovations.
3. Social Influence
a) Innovators tend to have a great deal of influence beyond their own immediate
groups and tend to be opinion leaders.
4. Personality
a) Innovators have a high need for stimulation.
b) Inner directed
c) Less dogmatic
d) Less planning when making decisions
5. Cultural Values
a) Innovativeness is associated with cultures that value individualism, assertiveness,
and openness to change.
6. Media Involvement
a) Innovators are frequent users of the media and rely on external information
extensively.
7. Usage
a) Innovators are heavy users within the product category.
III. Diffusion
A. How Offerings Diffuse Through a Market
1. Diffusion reflects the behavior of the marketplace of consumers as a group.
2. The S-Shaped Diffusion Curve
a) Products first spread through the market relatively slowly.
b) After a certain period of time, the rate of adoption dramatically increases, and
then slows again.

2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
228 Chapter 16: Adoption of, Resistance to, and Diffusion of Innovations
3.
The Exponential Diffusion Curve
a) A high percentage of the market purchases the product as soon as it is available.
b) With each additional time period, the adoption increases at a decreasing rate.
B. Factors Affecting the Shape of the Diffusion Curve
1. Perception of social, psychological, economic, performance, or physical risk
2. Consumers may be unsure about how long a product will be on the market.
3. High switching costs
4. Diffusion curves reflect the rate of adoption only, not the time period under analysis.
C. How Diffusion Relates to the Product Life Cycle
1. The product life cycle (PLC) concept is as follows:
a) Products go through a period of introduction.
b) Growth becomes rapid as more competitors enter the market and consumer
acceptance increases.
c) As competition increases, weaker competitors drop out and product sales
stabilize.
d) Eventually consumer acceptance wanes, and product sales decline.
2. Diffusion focuses on the percentage of the market that has adopted the product.
3. PLC relates to sales of a product over time.
4. Marketing Implications
a) Marketers can try to prevent a products decline.
b) Marketers can encourage use innovativeness.
c) Marketers can try to diagnose their products likely life-cycle pattern.
(1) Fads have very short PLCs.
(2) Fashions or trends have lengthier PLCs than fads.
(3) Classics have lengthy PLCs.
IV. Influences on Adoption, Resistance, and Diffusion
A. Characteristics of the Innovation
1. Perceived Value
a) An innovation is perceived to have value if it offers greater benefits or lower
costs than existing alternatives.
2. Perceived Benefits
a) An innovations value to consumers is affected by what it is thought to offer
above existing products or its perceived relative advantage.
(1) Relative advantage does not exist in a product, but rather it is something the
product does for the consumer.
3. Perceived Cost
a) Actual purchase costthe higher the purchase cost, the greater the resistance and
the slower the diffusion
b) Switching costthe cost of changing from the current product to a new one
4. Marketing Implications
a) If the innovation is not perceived to have a relative advantage, marketers may
need to add one by physically redesigning or reengineering the product.
b) If the product has an advantage, but it is not perceived by consumers, marketers
need to communicate and demonstrate the relative advantage.
c) Marketers can use price promotions to reduce perceived costs.
B. Uncertainty
1. Doubt about the standard product in the industry
2. Uncertainty about the relative advantage

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 Chapter 16: Adoption of, Resistance to, and Diffusion of Innovations 229
3. When innovations are resisted because consumers are worried about a short product
life cycle, marketers should show how adaptable the product is and hence how likely it
is to have a long PLC.
C. Consumer Learning Requirements
1. What consumers need to do in order to use the innovation effectively?
2. Compatibility
a) The extent to which the innovation or its usage is consistent with consumer
values, norms, and behaviors
3. Trialability
a) The extent to which an innovation can be tried out on a limited basis before
adoption
4. Complexity
a) The more difficult consumers think a product is to understand or use, the slower
the diffusion.
5. Marketing Implications
a) Marketers can enhance the compatibility or reduce the complexity of their
innovations.
b) Advertising can educate consumers about how compatible the innovation really is
with existing needs, values, and norms.
c) Marketers can use change agents such as opinion leaders to enhance perceived
compatibility.
d) Marketers can avoid incompatibility by designing the innovation to fit with an
entire system of products.
e) Marketers can work with regulators to force the innovation to be used as the
industry standard.
f) Trialability can be overcome with advertising and promotion tactics.
g) Demonstrations can show the benefits of using the product.
h) Simulating trials is another way to encourage consumers to try innovations.
D. Social Relevance
1. Observability
a) The extent to which the innovation is observable to others
(1) Consumers are more likely to adopt an observable product visibly
consumed by others.
2. Social Value
a) The extent to which a product has social cachet (it is seen as socially desirable
and/or appropriate and therefore generates imitation.
3. Marketing Implications
a) Extensive advertising, promotion, and distribution can be used to overcome
observability problems.
b) Distinctive packaging, styling, color, or unique promotions can enhance
observability.
c) Social relevance can be heightened by advertising, particularly advertising that
ties product use with potential social approval.
d) Social value can be enhanced by associating the product with some social entity,
cause, or value.
E. Legitimacy and Adaptability
1. Legitimacy refers to the extent to which the innovation follows established guidelines
for what seems appropriate in the category.
2. Adaptability refers to the innovations potential to fit in with existing products or
styles.

2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different
from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
230 Chapter 16: Adoption of, Resistance to, and Diffusion of Innovations
3. Marketing Implications
a) Legitimacy can be enhanced by demonstrating how the innovation came into
being.
b) Lack of adaptability can be overcome by showing the product as having uses that
extend beyond its original functions.
F. Characteristics of the Social System
1. Modernity
a) Modern social systems are those that have a positive attitude toward change
2. Homophily
a) Overall similarity among members of a group
(1). Normative pressures may speed adoption and diffusion of an innovation.
3. Physical Distance
a) When members of the social system are spread far apart, diffusion is slower.
4. Opinion Leadership
a) Key influencers among members can affect adoption and diffusion through
credibility.
5. Marketing Implications
a) Marketing efforts can affect resistance, adoption, and diffusion by affecting the
social system.
b) Marketers can identify those who have not adopted the innovation.
(1) Passive consumers are those who have tried the product but are unlikely to
provide information to others about it.
(2) Active rejecters are those who have tried the product and are likely to
provide unfavorable word of mouth.
c) Marketers can encourage word of mouth to help diffuse a product faster.
d) Negative word of mouth can be overcome by:
(1) Correcting the problem so WOM will not be negative
(2) Counteracting with advertising and personal selling
V. The Consequences of Innovations
A. Innovations often offer relative advantages that may not have previously existed, but they
are not always good from the standpoint of society.