Consumer Influence and the Diffusion of Innovations

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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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Copyright 2006 Pearson Education Canada Inc.

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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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Copyright 2006 Pearson Education Canada Inc.

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Copyright 2006 Pearson Education Canada Inc.

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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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