Adoption and Diffusion

of Innovation

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 THE DIFFUSION OF INNOVATION

 Diffusion of Innovation is the macro process by which the

acceptance of an innovation takes place among the members of
a social system, over time.
 This process include four elements :-

▪ Innovation :- new product, new service, new idea.

▪ Channels of Communication :- informal or formal, impersonal or
personal groups.
▪ Social System :- a market segment
▪ Time.

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 INNOVATION
 An idea, product, practice or object perceived as new by
consumers.

 Types of Innovation
▪ Discontinuous Innovation
▪ Dynamically Innovation
▪ Continuous Innovation

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 TYPES OF INNOVATION
Low
Degree of Behavioral Change Required

Continuous
Innovation
e.g. Cell
Phone with
Camera
Moderate
Dynamically
Continuous
Innovations
e.g. Cell
Phone

High
Discontinuous
Innovation
e.g.
Telephone

Rare Infrequent Frequent

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur
Frequency of Occurrence
 FACTORS AFFECTING INNOVATION
ADOPTION
 Relative Ad vantage – It is the degree to which potential
customers perceive a new product as superior to existing
substitutes.
 Compatibility – It is the degree to which potential consumers feel
a new product is consistent with their present needs, values, and
practices.
 Complexity – It is the degree to which a new product is difficult
to understand or use.
 Trial ability – It is the degree to which a new product can be tried
on limited basis.
 Observability (communicability) – It is the ease with which a
product’s benefits or attributes can be observed, imagined, or
described to potential consumers.

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 CHANNELS OF
COMMUNICATION
 Marketers to Consumers
 Among Consumers
 Product dedicated websites
 Company websites
 Product related magazine and journals
 Consumer shows, exhibitions and fairs
 TV shows dedicated to innovations
 SMS sponsored television programmes
 Beauty pageants
 National level awards and game shows

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 SOCIAL SYSTEM
 A set of inter-related units that are engaged in joint problem
solving to accomplish a common goal
 Each social system has a social hierarchy and communication
network
 Types
▪ Traditional
▪ Modern

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 TIME
 Time has a bearing on
▪ The adoption process
▪ Innovativeness of the consumers
▪ The innovation’s rate of adoption

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 ADOPTION PROCESS
The innovation adoption process consists of five stages through
which potential consumers pass in attempting to arrive at a decision
to try or not to try a new or innovative product. The five stages are:
▪ Awareness – The consumer becomes aware that an innovation
exists.
▪ Interest – The consumer becomes interested in the innovative
product or service.
▪ Evaluation – The consumer undertakes a “mental trial” of the
innovation.
▪ Trial – The consumer tries the innovation.
▪ Adoption/Rejection – If satisfied, the consumer decides to
use the innovation repeatedly.

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 AN ENHANCED MODEL OF
ADOPTION PROCESS
Venturesomeness and
Consumer Innovativeness Pre-existing Need interest in Product Category
Rejection or postponement

Awareness
Evaluation

Interest

Trial

Adoption Rejection

Post Adoption
Continued Later
Evaluation
Rejection Adoption

Continued Discontinuance
Adoption

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur

 Consumer’s Innovativeness
▪ It is the degree to which an individual or adoption units adopts a new
id ea as compared to other members of the system. So som e consum ers
are more innovative than others.
▪ Five adopter categories -
▪ Innovators ( 2.5 % )
▪ Early adopters (12.5 % )
▪ Early majority ( 35 % )
▪ Late majority (35 % )
▪ Laggards ( 15 % )
 Rate of Adoption
▪ The speed with which an innovation spreads within the social system
▪ Depends upon
▪ Type of innovation
▪ The product category

December 15, 2020 Adarsh Gahlaut, Asst. Prof., SIMT Kashipur