Innovation Management and

New Product Development

6th edition

Chapter 3
Market adoption and
technology diffusion

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Copyright © 2018, 2013, 2008 Pearson Education, Inc. All Rights Reserved
 Diffusion of innovations

Time

• Time lag between innovation and useable product

e.g. driverless cars; drones.
• Industry product development times
e.g. aircraft and pharmaceutical products > 10 years

Innovation and the market

• Market vision
• Innovative new products and consumption patterns

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Figure 3.1
Three critical dimensions of change-of-
technology intensive products

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Figure 3.2
Penetration of consumer electronics,
1978–2004

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Figure 3.3
S-curve of cumulative adopters

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Marketing insights to facilitate innovation

Lead Users

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 Crowdsourcing for new product ideas

1. Ask which product customers would like produced.

2. Ask which products customers prefer.
3. Ask customers to name the new product.
4. Ask customers for new product variations.

Frugal innovation

The process of reducing the complexity and cost of a good and

its production. Usually this refers to removing none-ssential
features from a durable good to sell it in developing countries.

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 Innovation diffusion theories

• Rogers diffusion theory

• Moore: crossing the chasm
• Beacon products
• Seasonality
• Bass diffusion model
• Market adoption theories

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Figure 3.4
Adopter categorisation on the basis of
innovativeness

Source: Adapted from Moore, G.A. (1991) Crossing the Chasm, Harper Business.

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Table 3.1
Paradoxes of technological products

Source: Adapted from Mick and Fournier (1998).

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Table 3.2
Busiest container ports

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Table 3.3
Specifications of the three most
common types of container

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Table 3.4
Biggest shipping container companies

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