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Consumer Influence and the Diffusion of Innovations

Copyright 2006 Pearson Education Canada Inc.

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

Copyright 2006 Pearson Education Canada Inc.

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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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