adoption and diffusion of in nova tins

8/3/2019 Adoption and Diffusion of In Nova Tins

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INNOVATION

Definitions:

Any idea, practice or material artifact perceived to be newby the relevant adopting unit

A continuum or range of newness based on the productseffect on established consumption patterns

Three categories of innovation:a) Continuous innovations

b) Dynamically continuous innovations

c) Discontinuous innovations


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Innovations contd

a) Continuous innovations:

- Least disrupting influence on established

consumption patterns- Product alternation, rather than total new

product establishment

E.g.


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Innovations contd

b) Dynamically continuous innovations:

- More disrupting effects

- Established patterns not altered

- New product creation or alteration of

existing items

- Eg:


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Innovations contd

c) Discontinuous innovations:

- New products

- New behaviour patterns

- E.g


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ADOPTION: The acceptance and continued

use of a product or brand by an individual.

The adoption model:

Awareness

Comprehension

Attitude

Legitimation

Trial

Adoption

Mere awareness, very little info, no well

formed attitude.

Knowledge & understanding of product and

what it can do

Fav/ Unfav behaviour, predispositiontowards product

Convinced about purchase; gathers

additional information

Tests/ tries product to determine utility;Cognitive or actual use.

Determines whether to use product in full

scale way; Continuous purchase/ use


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Significance of analysing adoption

process:

1) Not all consumers go through the adoption

process at the same speed.

2) Marketers communication forms vary intheir effectiveness over the different stages in

adoption process:

- Early stages, mass medial more effective

- Later stages, personal selling and WOM

more effective.


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Causes of incompleted adoption process

Acceptance process stage Marketing-organisation

causes

Consumer causes

Awareness Poorly used or too little

communication

Selective exposure

Selective perception

Comprehension Communication difficult to

understand

Selective retention

Attitude Communication not

persuasive

Complacency

Suspended judgment

Legitimation Poor source effect of

communication

Peer-group pressure against

adoption/ Laws regulating use

of innovation

Trial Behavioral response not

specified in comm

Poor distribution system

Good alternative

Innovation not available

Adoption Failure to develop new

products/ Improve old prods

Replaced by another

alternative


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Categories of Adopters

Innovators

Technology

Enthusiasts

Early

AdoptersVisionaries

Late

MajorityConservatives

Early

MajorityPragmatists

Laggards

Skeptics

2.5% 13.5% 34% 34% 16%


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Innovators:

- Venturesome, eager to try new ideas- More risk capital( material and social) and afford to

take calculated risks.- Well educated, from well-established families,

cosmopolitan

- Information from other innovators and impersonaland scientific sources.

- Belong to state/ national/ regional organisations- Respected by local community for their success.

- Appreciate technology for its own sake

Importance: They are the gatekeeper to the nextgroup of adopters.


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Early Adopters:

- More socially integrated.

- Younger than late adopters

- High social status, above average education

- Greatest contact with sales people- Opinion leaders

- Respected as good sources of information and adviceabout innovation

- Act as role models

Importance: For speeding the diffusion process.


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Early Majority:

- Most deliberate- Adoption process is longer than the previous two grps

- Adopt an innovation just before the avg member of asocial system does.

- Slightly above average in age, education and socio-economic status

- Active member, rather than leader

- Considerable contact with salespeople

- Neighbors and friends of early adopters

Importance: Crucial to legitimise the new idea for others


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Late Majority:

- Risk averse, technology shy

- Very price sensitive

- Above average in age,

- Below avg in education, social status and income

- Little opinion leadership

- Heavy reliance on informal sources of

information and influence.


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Laggards:

- Last group to adopt

- Tradition bound, want to maintain status quo

- Suspicious of innovations and perhaps of those

who offer them- Long length of adoption process

- Oldest of the adopter category

- Least education, lowest social status and income- No opinion leadership

- Little participation in formal organisations


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Promotions at various stages:ADOPTER CATEGORY PROMOTIONAL APPROACHES

Innovator and early adopters Stress on excitement of ownershipHow product is new and revolutionary

Personal selling

Credible spokespersons

Event marketing, etc..Early Majority Mass advertisements

Dealer promos

Sales promos- coupons, trial packs

Opinion leaders

Rely on peer-pressure

Late majority Guarantees and seals of approval (ISI, ISO, IDAapproved, etc..)

Demonstrate product in store.

Extended warranty, service/repair centers

Laggards Spend little on promotions, as interest isdisappearing

adoption and diffusion of in nova tins

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