This action might not be possible to undo. Are you sure you want to continue?
Diffusion Process Adoption Process Profile of Consumer Innovator
Diffusion of Innovation
Diffusion of Innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures. Everett Rogers, a professor of rural sociology, popularized the theory in his book Diffusion of Innovations; the book was first published in 1962, and is now in its fifth edition (2013)
The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.
Elements of the Diffusion Process The Innovation The Channels of Communication The Social System Time .
Element Definition Rogers defines an innovation as "an idea. . practice. or Innovation object that is perceived as new by an individual or other unit of adoption".
Element Definition A communication channel is "the means by which Communication messages get channels from one individual to another". .
.Element Time Definition "The innovation-decision period is the length of time required to pass through the innovation-decision process"."Rate of adoption is the relative speed with which an innovation is adopted by members of a social system".
Social system .Element Definition "A social system is defined as a set of interrelated units that are engaged in joint problem solving to accomplish a common goal".
Defining Innovations • Firm-oriented definitions – Product is “new” to the company • Product-oriented definitions – Continuous – Dynamically continuous – Discontinuous • Market-oriented definitions – Based on consumer exposure • Consumer-oriented definitions – Consumer judges it as “new” .
What type of product innovation is this product? .
Telephone Innovations .
Product Characteristics That Influence Diffusion • Relative Advantage • Compatibility • Complexity • Trialability • Observability .
Product Characteristics That Influence Diffusion • relative advantage (the ‘degree to which an innovation is perceived as being better than the idea it supercedes’) .
past experiences and needs of potential adopters’) .Product Characteristics That Influence Diffusion • compatibility (‘the degree to which an innovation is perceived to be consistent with the existing values.
Product Characteristics That Influence Diffusion • complexity (‘the degree to which an innovation is perceived as difficult to use) .
Product Characteristics That Influence Diffusion • trialability (‘the opportunity to experiment with the innovation on a limited basis’) .
Product Characteristics That Influence Diffusion • observability (‘the degree to which the results of an innovation are visible to others’). .
compatibility. . trialability. generally will be adopted over innovations that do not. along with less complexity. and observability.Product Characteristics That Influence Diffusion Innovations that have greater relative advantage.
Time and Diffusion • Purchase Time • Adopter Categories • Rate of Adoption .
Time and Diffusion • Purchase Time Amount of time that elapses between consumer’s initial awareness about a new product and the point at which product is adopted .
.Adopter Categories A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.
Adopter Categories .
Innovators: Description • • • • • • 2.5% of population Venturesome Very eager to try new ideas Acceptable if risk is daring More cosmopolite social relationships Communicates with other innovators .
5% of population Respected More integrated into the local social system The persons to check with before adopting a new idea • Category contains greatest number of opinion leaders • Are role models .Early Adopters: Description • • • • 13.
Early Majority: Description • 34% of population • Deliberate • Adopt new ideas just prior to the average time • Seldom hold leadership positions • Deliberate for some time before adopting .
Late Majority: Description • • • • 34% of population Skeptical Adopt new ideas just after the average time Adopting may be both an economic necessity and a reaction to peer pressures • Innovations approached cautiously .
Laggards: Description • • • • • • 16% of population Traditional The last people to adopt an innovation Most “localite” in outlook Oriented to the past Suspicious of the new .
This ad is designed to appeal to innovators. .
Time and Diffusion • Rate of Adoption How long it takes for a new product to be adopted by members of a social system. That is. how quickly a new product is accepted by those who will adopt it. .
Discussion Question • Which adaptor category are you? • Does it differ with different product categories? • How about your parents. what category are they? • Is age a factor in innovation behavior? .
He Evaluation product or service will also calls his cable company and finds satisfy the need--a kind out that he can exchange his “standard” of “mental trial.” cable box at no cost for an HDTV cable box. Consumer is first Awareness exposed to the product innovation. Consumer is interested in the product and searches for additional information. Satish reads about the HDTV set on the manufacturer’s Web site and then goes Interest to an electronics store near his apartment and has a sales person show him the unit. Consumer decides After talking to a knowledgeable friend. . whether or not to Satish decides that his TV will fit nicely believe that this on top of the chest in his bedroom.Stages in Adoption Process NAME OF STAGE WHAT HAPPENS DURING THIS STAGE EXAMPLE Satish sees an ad for a 23-inch thin LCD HDTV in a magazine he is reading.
it.Stages in Adoption Process NAME OF STAGE WHAT HAPPENS DURING THIS STAGE Consumer uses the product on a limited basis Trial EXAMPLE Since the HDTV set cannot be “tried” like a small tube of toothpaste. Satish loves his new HDTV set and consumer decides to use expects many year of service from the product on a full. Adoption (Rejection) If trial is favorable. Satish buys the TV at the local electronics store on his way home from work. rather than a limited basis-if unfavorable. the consumer decides to reject it. The store offers a 14-day full refund policy. .
An Enhanced Adoption Process Model .
Profiling Consumer Innovators • Defining the Consumer Innovator The relatively small group of consumers who are the earliest purchasers of a new product .
•The Innovator Is an Opinion Leader .Profiling Consumer Innovators • Interest in the Product Category Consumer innovators are much more interested in product category.
Profiling Consumer Innovators • Personality Traits Less dogmatic Other directed Risk takers Variety seeking Venturesome .
Profiling Consumer Innovators • Media Habits Subscribe to Special interest magazines Watch special TV programmes • Social Characteristics More socially accepted More socially involved .
Profiling Consumer Innovators • Demographic Characteristics Relatively young May have more formal education Higher income Higher occupational status • Are There Generalized Consumer Innovators? Highly unlikely .
Diffusion Process and Marketing Strategy • Identify diffusion inhibitors and find ways to compensate for these • Identify innovators and early adopters and cater to them • Move consumers from awareness to adoption • Make effective use of word-of-mouth communications .