BUSINESS ADOPTION.docx

7/23/2019 BUSINESS ADOPTION.docx

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BUSINESS ADOPTION

DEFINITION:

It is a cognitive process through which all the consumers pass before actually purchasing

the product. It is divided into 5 stages of adoption.

STAGES IN TE A!"#TI"N #$"%ESS&

Awareness:

'hen the potential consumers are apprised of the product but do not have a detailed(nowledge about it.

Interest:

'hen the product catches the consumer)s attention and she herself tries to discover more

and more about it.

Evaluation:

In this stage* the consumer has enough (nowledge about the product and she considers its

relative benefits and evaluates it in terms of various factors as cost* aesthetics* competitors)offering* etc.

Trial:

This is the stage when the consumer e+periences the product and ,udges whether the

claims are correct or not. Trials can be generated by sampling or by the consumer herself buying

the product. -any new brands aim to reach this stage as soon as possible.


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Adoption or Rejection decision:

This is the stage when the consumer has made up her mind whether to remain with the

product or switch bac( to her earlier product.

BUSINESS PROESS !IFE "!E:

!efine

-odel

Simulate

Activate

E+ecute

-onitor

Analye

optimie

BUSINESS ADOPTION UR#E:

The adoption curve provides a useful way to brea( down customers in five segment. They are

Innovators*

Early adopters

Early ma,ority

/ate ma,ority


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/aggards.

Innovators:

Innovators are the first to adopt new products and services. They are technology frea(s

par e+cellence* and li(e e+perimenting and playing around to find out what they can do with

their new toys. Innovators typically represent a few percent of the target user base.

Earl$ adopters:

Early adopters also invest early on in new technologies* not as technologists* but to

address their concrete problems.

They typically represent about 012 of the target population.

In companies* early adopters are opinion influencers. "ften they will not be decision

ma(ers themselves* but are (ey to convince others. Early adopters are usually at the centre

of e+tensivecommunicationnetwor(s* for instance internal management circles* industry

for a* or are very sociable individuals in their private sphere.

'hen a critical mass of early adopters has developed* the process of technology diffusion

becomes self3sustaining and li(e a snow3ball effect* it spills over to the early ma,ority. "n

the other hand* competing and incompatible standards slow down the rate of adoption and

the transition from early adopters to the early ma,ority.

Three phases of early adoption. They are&

Investigation
http://www.business-planning-for-managers.com/main-courses/marketing-sales/marketing/the-adoption-curve/#3927441http://www.business-planning-for-managers.com/main-courses/marketing-sales/marketing/the-adoption-curve/#3927441http://www.business-planning-for-managers.com/main-courses/marketing-sales/marketing/the-adoption-curve/#3927441http://www.business-planning-for-managers.com/main-courses/marketing-sales/marketing/the-adoption-curve/#3927441


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$ollout and $eporting

Evangelism

T%e earl$ &ajorit$:

Early ma,ority is happy to wait and see until a main stream of users and technical

standards have materialied under the influence of the early adopters. "nly then are they ready to

invest in innovation to satisfy concrete needs.

They typically represent 412 of the target mar(et. In corporate life* these are decision

ma(ers who need to be convinced by references before they allocate budget.

The early adopters and early ma,ority usually have higher socioeconomic status than later

adopters. eing financially better3off than late adopters* buying pricey technology early is

less ris(y to them. Studies have also shown that the early adoption of innovation tends to

strengthen their economic position and widen the gaps between the higher and lower

individual in a system. #arado+ically* the individuals who adopt first generally need thebenefits of the innovation comparatively less than later adopters.

T%e late &ajorit$:

/ate ma,ority has similar characteristics and e+pectation as the early ma,ority* e+cept that

they are ris( averse and uncertain about their ability to master innovation.

As a conse6uence* they prefer to wait until products have been further developed and

designed for the mass mar(et* and provide an increased level of user3friendliness

compared to previous generations.

The late ma,ority is made of followers and represents 7123 412 of the target mar(et.

!a''ards:

/aggards are technology averse and resistant to change. If they buy technology at all it is

because the technology has become so pervasive that they have little choice not to use it. As a

mar(et* they are usually of limited interest to technology sellers as they re6uire low price* a lot of

support and their profitability is the lowest. /aggards amount to about 012 of a total mar(et.

Business adoption &odels:

usiness logic

Enabling technology

E+perimental learning

E3business adoption steps&

-essaging

-ar(eting and stoc( availability chec(s
http://www.business-planning-for-managers.com/main-courses/marketing-sales/marketing/the-adoption-curve/#93211787http://www.business-planning-for-managers.com/main-courses/marketing-sales/marketing/the-adoption-curve/#93211787


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"nline ordering

"nline payment

-onitoring order progress

Technology adoption life cycle

ITE$ATI8E A!"#TI"N #$"%ESS&

Integrate

%ustomie

Ground rules

Engage and motivate

Train and -entor

-easure and review

9:E$ !E%ISI"N #$"%ESS&

Need $ecognition

Information Search

Evaluation of alternatives

#urchase decision

#ostpurhase behaviour

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