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Adoption Process

Diffusion of Innovation

How a consum er becomes a customer

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Diffusion

Diffusion is the process by which an innovation iscommunicated through certain channels overtime

among the members of a social system.

An innovation? is an idea perceived as new by the individual.

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The four main elements in the diffusion of newideas are

(1) The innovation(2) Communication channels

(3) Time

(4) The social system (context)

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1. The innovation

Why do certain innovations spread more quickly thanothers?

The innovation, to spread and be adopted should show: The

characteristics which determine an innovation's rate of adoption

are:

Relative advantage Compatibility

Complexity

Trialability

Observability to those people within the social system.

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2. Communication

Process by which participants create and share Mass media channels - effective in creating knowledge of

innovations

Interpersonal channels - effective in forming and changing

attitudes toward a new idea Influences the decision to adopt or reject a new idea.

Most individuals evaluate an innovation, not on the

basis of scientific research by experts,

but through the subjective evaluations of near-peers who

have adopted the innovation.

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New Product Adoption Theory

ADOPTION PROCESS

- The consumer decision stages that lead to innovation

acceptance/rejection

- A micro process that focuses on

internal forces of the consumer

* Intra Personal (Psych) Influences

* Inter Personal (Social) Influences

* Product Selection Criteria

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New Product Diffusion Theory

DIFFUSION PROCESS.

The spread of an innovation from its source to the ultimate

consumer.

A macro process that focuses on external forces on the consumer

(change agents, channels of information, types of information).

Occurs in a social system (a target audience, community, etc.)

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is influenced by

Competitive Intensity

Good Supplier Reputation Standardization of Technology

Vertical Channel Coordination

Resource Commitments

Speed of Diffusion

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Introduction

The Adoption Process (also known as the Diffusion ofInnovation) is more than forty years old.

It was first described by Bourne (1959), so it has stood

the test of time and remained an important marketing tool

ever since.

It describes the behavior of consumers as they

pu rchase new produc ts and serv ices.

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Adaptation of new inventions

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Adoption process

1. Awareness2. Interest

3. Evaluation

4. Trial

5. Decision6. Confirmation

OK, we will

buy X.

If I have

to buy itI will.

No way!

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Categories

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Innovators

First to adopt & display that they likely to want to be

ahead

To be the first to own new products, well before the

average consumer.

They are often not taken seriously by their peers.

They often buy products that do not make it through the

early stages of the Product Life Cycle (PLC).

http://www.marketingteacher.com/Lessons/lesson_plc.htmhttp://www.marketingteacher.com/Lessons/lesson_plc.htm

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Early adopters

Are also quick to buy new products and services,

So are key opinion leaders (KOLs) with their neighbors

and friends as they tend to be amongst the first to get

hold of items or services.

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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.

Then there is a rush of mass purchases.

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Late Majority

Tends to purchase the product later than the average

person.

They are slower to catch on to the popularity of new

products, services, ideas, or solutions.

There is still mass consumption, but it begins to end.

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Laggards

These tend to very late to take on board new products

and include those that never actually adopt at all.

Here there is little to be made from these consumers.

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