Diffusion of Innovation

Diffusion of Innovation is associated with:

How consumers accept new products

& brands How they accept a set of marketing mix elements formulated for a brand
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Diffusion
The process by which and innovation is

communicated through certain channels over time among the members of a social system

Innovation
An idea, practice or object perceived as new by

an individual or other unit of adoption

New products can be divided into:

Small

Degree of Behavioral Change Required

Continuous Innovation e.g. Cell Phone with Camera

Moderate
Dynamically Continuous Innovations e.g. Cell Phone

Large
Discontinuous Innovation e.g. Telephone

Rare

Infrequent

Frequent

Frequency of Occurrence of Innovation

Types of Innovation- examples

Electric cars (Reva) Discontinuous Innovation Dynamically continuous innovation: Internet shopping, electric shavers Continuous innovation: remote control for lights

Brands that did not diffuse in India

Soya drink from Godrej (Greatshake) Breakfast juices (Tang Orange juice)

Factors Affecting Innovation Adoption

Relative Advantage Compatibility Complexity Trialability Ovservability Other factors are Type of social system, Type of decision, Marketing effort, Need fulfillment/problem solving, and perceived risk
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Consumer Resistance to Innovation

The resistance offered by the consumers to an innovation, either because it poses potential changes from a satisfactory status quo or because it conflicts with their belief structure

Consumer Resistance to Innovation

Innovation Exposure No

Resistance

Adoption

Yes

Flexible to Modification

No

Rejection

Modification

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Channels of Communication
Marketers to Consumers Among Consumers Product dedicated websites Company websites Product related magazine and journals Consumer shows, exhibitions and fairs TV shows dedicated to innovations SMS sponsored television programmes Beauty pageants National level awards and game shows
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Social System
A set of inter-related units that are engaged in joint problem solving to accomplish a common goal Each social system has a social hierarchy and communication network Types
Traditional Modern
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Time
Time has a bearing on
The adoption process Innovativeness of the consumers The innovations rate of adoption

Adoption Process 5 stages

Awareness Interest Evaluation Trial Adoption/Rejection
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An Enhanced Model of Adoption Process

Consumer Innovativeness Rejection or postponement Pre-existing Need Venturesomeness and interest in Product Category Awareness Interest Trial

Evaluation
Adoption
Post Adoption Evaluation Continued Adoption

Rejection

Continued Rejection Discontinuance

Later Adoption

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Time
Consumers Innovativeness
Innovativeness is the degree to which an individual or adoption units adopts a new idea as compared to other members of the system. So some consumers are more innovative than others Five adopter categories
Innovators Early adopters Early majority Late majority Laggards

Rate of Adoption
The speed with which an innovation spreads within the social system Depends upon
Type of innovation The product category
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A profile of consumer innovator

The individuals who are the first ones to adopt an innovation in a social system Innovators as an Opinion Leader and Change Leader
The role of some key individuals within the social system significantly affects the rate of adoption

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Summary
The Diffusion Concept A Profile of a Customer Innovator

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Thank you
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