Consumer Diffusion Process

or informal communication) to the members of social system (a target market) over a period of time.INTRODUCTION Diffusion is the process by which the acceptance of an innovation (new product. Diffusion process includes 4 elements  innovation  channel of communication  social system  time . new idea or new practice) is spread by communication (mass media. new service. sales person.

The Defination ignores whether or not the product is new to the marketplace. Market oriented It judges the newness of the product in terms of how much exposure consumer have on it.The definition of the term innovation can be 1.  A product is considered new if it has been purchased by a relatively small (fixed) percentage of the potential market. Consumer oriented It refers that a new product is that which a potential consumer judges to be new. Firm oriented this approach treats the newness of the product from the from the prospective of company producing and marketing it. 2.  A product is considered new if it has been in the market for relatively small period of time 3. This newness is based on the consumer s perception of the product .

    . Trialability : the degree to which new product is capable of being tried on a limited basis. Complexity : the degree to which new product is difficult to understand or use that affect product acceptance. values and practice. The greater the opportunity to try a new product. the easier it is for consumer to evaluate it and ultimately adopt it.Five Product Characteristics influence the consumers acceptance of a new product  Relative Advantage : the degree to which potential consumer perceives a new product as superior to existing substitute. Compatibility : the degree to which potential consumer feels new product is consistent with their present need . Observability : It is concerned with which a product benefits or attributes can be observed . imagined or described to potential consumers.

Product oriented It focus on the features inherited in the product itself and on the effects these feature are likely to have on the consumer established usage pattern. Innovations can be discontinuous (maximum change and rare). or continuous (least change and frequent) in nature. . dynamically continuous (moderate change and infrequent).4.

Channels Of Communication Diffusion researchers are concerned with 2 aspects of communication the channels through which word about a new product or service is spread to the public and the types of messages that influence the adoption or rejection of new products or services. a community. a region or even a nation. Traditional orientation have low acceptance of new products Typology of modern social system Positive attitude toward change Advanced technology General respect for education and science Emphasis on rational Interaction with outsiders Members can see themselves in new role . Modern orientation have high acceptance of new products. such as a target market. Social System Diffusion is always examined in the context of a specific social system.

. Researchers are concerned with The amount of purchase time required for an individual customer to adopt or reject a new product/service. The rate of adoption it is concerned with how long it takes a new product are service to adopt by members of a social system. The identification of sequential adopters involves classification scheme that indicates where a consumer stands in relation to other consumers in term of time.Time Time is an integral consideration in the diffusion process.

well before the average consumer.The Adoption Process. and so are key opinion leaders with their neighbors and friends as they tend to be amongst the first to get hold of items or services    . Innovators are the first to adopt and display behavior that demonstrates that they likely to want to be ahead. It describes the behavior of consumers as they purchase new products and services. early majority. It was first described by Bourne (1959). They are often not taken seriously by their peers. The individual categories of innovator. Early adopters are also quick to buy new products and services. early adopter. late majority and laggards are described below. The often buy products that do not make it through the early stages of the Product Life Cycle (PLC). and to be the first to own new products.  The Adoption Process (also known as the Diffusion of Innovation) is more than forty years old.

Finally. The late majority tends to purchase the product later than the average person. Here there is little to be made from these consumers . but it begins to end. or solutions. Then there is a surge of mass purchases. They are slower to catch on to the popularity of new products. ideas. laggards tend to very late to take on board new products and include those that never actually adopt at all.The early majority look to the innovators and early majority to see if a new product or idea works and begins to stand the test of time. They stand back and watch the experiences of others. There is still mass consumption. services.

there are five categories of product adopters: Innovators venturesome. then to the general population the trickle-down effect .information and acceptance flows. lower socio-economic status. educated. time they become less expensive and are diffused to lower and lower strata The Everett Rogers Diffusion of innovations theory . popular. Late majority skeptical. socioLaggards neighbours and friends are main info sources.    Technology driven models . Early majority deliberate.products tend to be expensive at first.for any given product category. multiple info sources. many informal social contacts. and trickletherefore only accessible to the wealthy social strata . The rate of acceptance of technology is determined by factors such as ease of use and usefulness. fear of debt.Mechanics of diffusion There are several theories that purport to explain the mechanics of diffusion:  The two-step hypothesis . . via the twomedia. traditional.These are particularly relevant to software diffusion. Early adopters social leaders. first to opinion leaders.