new product adoption & diffusion processes

7/29/2019 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

new product adoption & diffusion processes

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