OPERATIONS MANAGEMENT

DIFFUSION OF
INNOVATION MODEL

INTRODUCTION
Diffusion of Innovation model, explores what type of
person, adopts products at different stages of theproduct
life cycle.
A product will encounter five types of purchasers as it
moves through its life cycle.
This model helps us learn the five classes of adopters and
the role each plays in this process.
Marketers must understand this process in order to
successfully introduce innovative products to the
marketplace.

DIFFUSION OF INNOVATION
PRODUCT LIFE CYCLE

34%

34%

13.5%
16%

2.5%

CLASSES OF ADOPTERS
There are five different classes of adopters.
1. Innovators
Innovators purchase the product at the beginning of the
life cycle.
Innovators are the first to purchase a product and make
up 2.5% of all purchases of the product.
Sales to innovators are not usually an indication of future
sales as innovators simply buy because the product is
new.

CLASSES OF ADOPTERS (Contd)

2. Early Adopters
This group of purchasers adopt early but unlike innovators,
adoption is after careful thought.
Early Adopters make up 13.5% of purchases.
They are usually opinion leaders in their circle adoption by this
group is crucial for the success of the product.
Early adopters help the product's journey in becoming
"socially acceptable".

CLASSES OF ADOPTERS (Contd)

3. Early Majority
The Early Majority are a cautious group of purchasers, making
up 34% of purchases. The purchases are during the growth
stage.
They will not buy a product until it has become "socially
acceptable".
Early majority purchases are needed for the product to
achieve wide spread acceptance.
4. Late Majority
Late Majority make up another 34% of sales and usually
purchase the product during the late stages of the product's
life cycle.

CLASSES OF ADOPTERS (Contd)

5. Laggards
Laggards make up 16% of total sales.
They purchase the product near the end of its life.
Some laggards purchase the product because their existing
product is broken and it can not be repaired or replaced with
an identical product.
Laggards may wait to see if the product will get cheaper and
by the time they purchase the product, a new version of the
product is often (already) on the market.

CONCLUSION
All groups usually have opinion leaders that the rest of the
group like to follow. Opinion leaders are people who are good
at selecting the next big thing such as the latest fashion
trend or electronic gadget. A product type will dictate the
product adoption behaviour of a person.For example a
person may be an innovator for electronic products but a
laggard for kitchenware products.

THANK YOU