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    Difusion of Innovations

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    Rushabh

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    © All Rights Reserved
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    Difusion of Innovations

    Uploaded by

    Rushabh
    0 views17 pages

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    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    0 views17 pages

    Difusion of Innovations

    Uploaded by

    Rushabh

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    Diffusion

    Diffusion of Innovations

    of Innovations
    Diffusion
     In consumer behavior terms, refers to research
    on the consumer acceptance of new products
    and services
     Involves understanding two closely related
    processes:
     Diffusion: a macro process concerned with the
    spread of a new product--an innovation--from
    its source to the consuming public
     Adoption: the micro process concerned with
    the stages the consumer goes through in
    deciding to accept or reject a new product
    The diffusion process

     Diffusion is the process by which


     the acceptance of an innovation--a new product,
    service, idea or practice
     is spread by communication--mass media,
    salespeople, or word-of-mouth
     to members of a social system--target market
     over a period of time
     Four basic elements of the diffusion
    process:
    1. The innovation
    2. The channel of communication
    3. The social system
    4. Time
    1. The innovation
     Innovation takes many forms
     There is no universally accepted definition of
    the terms product innovation or new product
     Instead, approaches to define the term have
    taken place within certain contexts:
     Firm-oriented definitions
     Market-oriented definitions
     Consumer-oriented definitions
     Product-oriented definitions
    Product-oriented definitions

     This approach focuses on the features


    inherent in the product itself and the effects
    these features are likely to have on
    consumers’ established usage patterns
     Robertson identified three types of product
    innovations:
     Continuous innovation
     Dynamically continuous innovation
     Discontinuous innovation
    Continuous innovation

     Introduction of a modified product rather than


    a totally new product
     Little or no change in technology
     Has the least disruptive influence on
    established usage patterns
     Symbolic innovations tend to be continuous
    Dynamically continuous
    innovation
     May involve a new product or modification of
    an existing product
     Some technical advances
     Still does not disrupt or alter consumer
    buying and usage patterns
    Discontinuous innovation

     Introduction of a pioneering product


     Involves a major technological advance
     Consumers must learn new behavior patterns
     May be difficult to market initially
     Is rare
    Product characteristics that
    influence diffusion
     Not all new products meet with immediate
    success
     No precise formula marketers can use to
    predict how consumers will react to their
    products
     Researchers have identified five
    characteristics that appear to influence
    consumer acceptance
    1. Relative advantage
    2. Compatibility
    3. Complexity
    4. Trialability
    5. Observability
    Relative advantage

     The degree to which potential consumers


    perceive a new product is superior to existing
    substitutes
    Compatibility

     The degree to which potential consumers feel


    a new product is consistent with their present
    needs, values and practices
    Complexity

     The degree to which a new product is difficult


    to understand or use
    Trialability

     The degree to which a new product is


    capable of being tried on a limited basis
    Observability

     The ease with which a product’s benefits or


    attributes can be observed, imagined or
    described to potential consumers
    Time and the Adopter Categories

    Innovators

    Adopter Categories Based on Innovativeness

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