Download - New Product Adoption & Diffusion Processes
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NEW PRODUCT ADOPTION
AND DIFFUSION OF
INNOVATION
(Adoption Theory)
MMII
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What is Innovation?
an idea, practice or object that is perceived as new
a technological innovation which can be
hard wareconsisting of tool that embodies the
technology as a material or physical object , or
softwareconsisting of information base for the tool
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Diffusion is the process by which an innovation is
communicated through certain channels over
time.
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New Product Adoption Theory
Adoption processThe consumer decision stages that lead to innovationacceptance/rejection
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The Adoption Decision Process
How an individual consumer acts . . .
KNOWLEDGE PERSUASION DECISION
IMPLEMENTATIONSCONFIRMATION
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Everett M. Rogers' theory
Research shows that consumers differ in how quickly
they decide to adopt (buy) a product after they
become aware of it.
Diffusion of Innovation, explores what type ofperson, adopts products at different stages of the
product life cycle.
Under Rogers' Diffusion of Innovation, a product will
encounter five types of purchasers as it moves
through its life cycle.
http://www.learnmarketing.net/productlifecycle.htmhttp://www.learnmarketing.net/productlifecycle.htm -
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Diffusion Process,
Adopter Categories
INNOVATORS - are first to buy and typicallydescribed as venturesome, younger, well
educated, financially stable, and willing totake risks.
EARLY ADOPTERS - are local opinion leaderswho read magazines and who are integrateinto the social system more than theaverage consumer.
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Diffusion Process,
Adopter Categories EARLY MAJORITY - solid, middle-class
consumers who are more deliberate and
cautious
LATE MAJORITY - described as older, more
conservative, traditional, and skeptical of new
products
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Diffusion Process,
Adopter Categories
Laggards
Resist change
Conservative
Like tradition Often older & lower in
socioeconomic status
Nonadopters
Refuse to change
.
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Characteristics of New Product Success
OBSERVABILITY - is the opportunity for buyers to see the
newness (+)
COMPLEXITY - is a disadvantage for new products whichslows diffusion and may be offset by simplifying usage or
through extensive education (-)
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Communication Flows
Two-Step Flow of Communication
COMPANYMESSAGE
OPINIONLEADERS
TARGET AUDIENCES
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Positions of Status
OPINION LEADER - one who occupies a position ofinformalinfluences over the attitudes and overt behavior ofothers. Opinion leadership is earnednot assumed.
CHANGE AGENT - one who occupies a professionalposition offormalinfluence associated with a given role ofstatus. Change agent status is assumed, not necessarily
earned
FOLLOWER - not a passive patsy. Actively seeksinfluence.
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Two-Step Flow of Communication
and Adopter Categories
Early
adopters
Innovators Early
majority
Company Message
from mass media
Product Category
Opinion
leader(s)
Potential target
audiences
Opinion recipient 1
Opinion recipient 2
Opinion recipient 3
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Characteristics of Opinion Leaders
in contrast with their followers
More like, than unlike, their followers
More technically competent
More socially accessible
More cosmopolitan
More innovative (receptive to change)
Higher media exposure (more informed) Higher social status
More conformist with social norms and values