Chapter 13 Consumer Influence and the Diffusion of Innovations

Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

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Opinion Leadership

The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients

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What is Opinion Leadership?

Opinion Leader Opinion Receiver

Opinion Seeker

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Special Issues

Opinion leaders are four times more likely to be asked about political issues, three times more likely to be asked about computers or investments, and twice as likely to be asked about restaurants Information seekers seek a strong-tie source when they know little about a topic, and weak-tie sources when they have some knowledge
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Purchase Pals and Surrogate Buyers

Purchase Pals
Information sources who accompany a consumer on a shopping trip

Surrogate Buyers
Professional buyers who help consumers with their purchases
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(continued)
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Figure 13-1 (continued)

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Market Maven

Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.

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Motivations Behind Opinion Leadership

The Needs of Opinion Leaders

To reduce their own post-purchase dissonance For tangential personal benefits Because of high levels of product involvement Because of message involvement
continued

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Motivations Behind Opinion Leadership

Motivations of Opinion Seekers

To obtain new product or new usage information To reduce their risk by getting knowledge To reduce search time To receive the approval of the opinion leader

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Reasons for the Effectiveness of Opinion Leadership

Credibility Positive and Negative Product Information Information and Advice Opinion Leadership Is Category-Specific Opinion Leadership Is a Two-way Street

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The Interpersonal Flow of Communication

Two-Step Flow
A communication model that portrays opinion leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.

Multi-step Flow
A revision of the traditional two-step theory that shows multiple communication flows

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Measuring Opinion Leadership

OPINION LEADERSHIP MEASUREMENT METHOD DESCRIPTION OF METHOD SAMPLE QUESTIONS ASKED

SELF-DESIGNATING METHOD

Each respondent is asked a series of questions to determine the degree to which he or she perceives himself or herself to be an opinion leader.

Do you influence other people in their selection of products?

SOCIOMETRIC METHOD

Members of a social system are asked to identify to whom they give advice and to whom they go for advice.

Whom do you ask?Who asks you for info about that product category?

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Measuring Opinion Leadership continued

OPINION LEADERSHIP MEASUREMENT METHOD
DESCRIPTION OF METHOD SAMPLE QUESTIONS ASKED

KEY INFORMANT METHOD

Carefully selected key informants in Who are the most a social system are asked to influential people in designate opinion leaders. the group?

OBJECTIVE METHOD

Artificially places individuals in a Have you tried the position to act as opinion leaders product? and measures results of their efforts.

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Opinion Leadership and Marketing Strategy

Identify and provide samples to opinion leaders Design programs to stimulate opinion leadership Develop ads simulating opinion leadership Create opinion leaders Control negative word-of-mouth communication
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Diffusion Process

The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.

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Adoption Process

The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.

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Defining Innovations

Firm-oriented definitions Product-oriented definitions Market-oriented definitions Consumer-oriented definitions

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Product-Oriented Definitions
Continuous Innovation Dynamically Continuous Innovation Discontinuous Innovation

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Factors That Affect the Diffusion of Innovations

The Innovation The Channels of Communication The Social System Time

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Product Characteristics That Influence Diffusion

Relative Advantage Compatibility Complexity Trialability Observability Felt Need Risk

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Social System and Diffusion

Does the target market have:

A positive attitude towards change? Technological skill? A general respect for education and science? A focus on rational and ordered social relationship? An outreach perspective? The ability to accept different roles?
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Time and Diffusion

Purchase Time Adopter Categories Rate of Adoption

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Adopter Categories

A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.

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Innovators: Description
2.5% of population Venturesome Very eager to try new ideas Acceptable if risk is daring More cosmopolite social relationships Communicates with other innovators

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Early Adopters: Description

13.5% of population Respected More integrated into the local social system The persons to check with before adopting a new idea Category contains greatest number of opinion leaders Are role models
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Early Majority: Description

34% of population Deliberate Adopt new ideas just prior to the average time Seldom hold leadership positions Deliberate for some time before adopting

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Late Majority: Description

34% of population Skeptical Adopt new ideas just after the average time Adopting may be both an economic necessity and a reaction to peer pressures Innovations approached cautiously

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Laggards: Description
16% of population Traditional The last people to adopt an innovation Most localite in outlook Oriented to the past Suspicious of the new

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Rate of Adoption

Insert Figure 13-16 A, B and C as small graphs; if that is not possible, then have one or two of them.

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The Profile of a Consumer Innovator

Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits Purchase and consumption characteristics Media Habits Social Characteristics Demographic Characteristics Are There Generalized Consumer Innovators?
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Diffusion Process and Marketing Strategy

Identify diffusion inhibitors and find ways to compensate for these Identify innovators and early adopters and cater to them Move consumers from awareness to adoption Make effective use of word-of-mouth communications
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