Marketing Communications and New Product Adoption

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Adoption ProcessAdoption Process

Innovation

Related

Characteristics

Relative

Advantage

Compatibility

Complexity

Trialability

Observability

Relative AdvantageRelative Advantage

• A product innovation is perceived as better than existing alternatives

• Positively correlated with an innovation’s adoption rate

• Exist when a new product offers:» Better performance, increased comfort,

saving in time and effort, or immediacy of reward

Relative AdvantageRelative Advantage

An illustration of

relative advantage

Relative AdvantageRelative Advantage

Another illustration

of relative advantage

CompatibilityCompatibility

• An innovation is perceived to fit into a person’s way of doing things

• The greater compatibility, the more rapid a product’s rate of adoption

• Overcome perception of incompatibility through heavy advertising to persuade consumers

CompatibilityCompatibility

A compatibility

problem

CompatibilityCompatibility

An effort to regain compatibility

ComplexityComplexity

• An innovation’s degree of perceived difficulty

• The more difficult, the slower the rate of adoption

ComplexityComplexity

Offsetting perceivedproduct complexity

TrialabilityTrialability

• An innovation can be used on a limited basis prior to making a full blown commitment

• The trial experience serves to reduce the risk of a consumer’s being dissatisfied with a product after having permanently committed to it through outright purchase

Adoption ProcessAdoption Process

An effort to

promote

vicarious trial

ObservabilityObservability

• The product user or other people can observe the positive effects of new product usage

• The higher the visibility, the more rapid the adoption rate

Stimulating Stimulating Word of Mouth InfluenceWord of Mouth Influence

• Positive word-of-mouth communication is critical in the success of a new product or service

• Unfavorable WOM have devastating effects because consumers seem to place more weight on negative information in making evaluations

Opinion LeaderOpinion Leader

• A person who frequently influences other individuals’ attitudes or overt behavior

• An informer, persuader, and confirmer

• Influence is typically limited to one or several consumption topics

• Influence moves horizontally through a social class

Opinion LeadersOpinion Leaders

Characteristics

• More cosmopolitan• More gregarious• Slightly higher socioeconomics status• Generally more innovative• Willing to act differently

Opinion LeadersOpinion Leaders

Market Mavens

Individuals who have information about

many kinds of products, places to shop,

and other facets of markets, and initiate

discussions with consumers and respond

to requests from customers from market

information

Questions for Measuring Opinion Leadership

SINGLE-QUESTION APPROACH:1. In the last 6 months have you been asked your advice or opinion about

golf equipment?Yes___ No___

MULTIPLE-QUESTION APPROACH:(Measured on a 5-point bipolar “Agree/Disagree” scale)

1. Friends and neighbors frequently ask my advice about golf equipment.2. I sometimes influence the types of golf equipment friends buy.3. My friends come to me more often than I go to them about golf equipment.4. I feel that I am generally regarded by my friends as a good source of

advice about golf equipment.5. I can think of at least three people whom I have spoken to about golf

equipment in the past six months.

Tactics: “Seeding the Market”Tactics: “Seeding the Market”

• Supplying advance samples in key markets to people who are likely to be influential.

• Finding cheerleeders who will get the talk started.