Post on 04-Jun-2018
8/13/2019 L10 Diffusion of Innovations
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Diffusion of Innovations
An innovat ion is an idea, practice, or product perceived to be
new by the relevant individual or group.
The manner by which a new
product spreads through amarket is basically a group
phenomenon.
New products can be placed
on a continuum from nochange to radical change,
depending on the market’s
perception.
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Diffusion of Innovations
Categories of Innovat ion
Adop t ion Process
Diffusion Rate
Adop ter Categories
Market ing Strategies and th e Dif fusion Proc ess
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Diffusion of Innovations
Categories of Innovations
Continuous Innovation
Adoption of this type of innovation requires relatively minor
changes in behavior(s) that are unimportant to the consumer.
Dynamically continuous Innovation
Adoption of this type of innovation requires a moderate
change in an important behavior or a major change in a
behavior of low or moderate importance to the individual.Discontinuous Innovation
Adoption of this type of innovation requires major changes in
behavior of significant importance to the individual or group.
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Diffusion of Innovations
Adopt ion Process and Extended Decis ion Making
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Diffusion of Innovations
Diffus ion Rates for Popular Consumer Electro nics (Cumulat ive)
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Diffusion of Innovations
Facto rs Affect ing the Spread o f Inno vat ions
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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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Diffusion of Innovations
Innovators
Early Adop ters
Early Major ity
Late Major i ty
Laggards
Adopter Categories
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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 areaction 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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Diffusion Process and Marketing
Strategy• Identify innovators and early adopters andcater to them
• Move consumers from awareness to adoption
• Make effective use of word-of-mouth
communications