Chapter 15 Innovations: Adoption, Resistance, Diffusion.
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Transcript of Chapter 15 Innovations: Adoption, Resistance, Diffusion.
Chapter 15
Innovations: Adoption, Resistance, Diffusion
Learning Objectives~ Ch. 15
To access:
1.Classifications of innovations, benefits offered & breadth
2.Adoption of innovation, why consumers resist innovation, & timing of innovation
3.Diffusion & its relationship to the product life cycle
4.Factors affecting adoption, resistance, & diffusion
Adoption of, Resistance to & Diffusion of Innovations
Innovation
“…an offering that is new to the marketplace… a product, service, or idea…consumers within a market segment perceive as new & that has an effect on existing consumption patterns.”
Innovations can be new products or new services
What is an example of a new service innovation that has changed your life for the better?
Characteristics of Innovations
Degree of novelty– Continuous– Dynamically continuous– Discontinuous
Benefits offered– Functional– Aesthetic/hedonic– Symbolic
Breadth
Innovation Continuum
DiscontinuousDynamically continuousContinuous
Depends on degree of behavioral change
What are examples of each part of the innovation continuum spectrum?
Adoption/Resistance to Innovations
Resistance (e.g., retail resistance, market resistance)
People are inherently resistant to change & to things they are uncertain of
Adoption—hierarchy of effect
– High-effort
– Low-effort
Timing of adoption decisions
– Characteristics of adopter groups
– Application of adopter group categories
High & Low Effort Hierarchy of Effects
Profile of Adopter Groups
Use-Diffusion Patterns
Marketing & Advertising Implications
Demographics
Social influence
Personality
Cultural values
Media involvement
Usage
Event marketing
Social media
Diffusion of Innovations
“…reflects the behavior of the marketplace of consumers as a group…the percentage of the population that has adopted an innovation at a specific point in time.”
Why do some goods diffuse quickly, while others lag?
Diffusion & PLC
Pattern of adoption/diffusion curve– S-Shaped = associated with risk– Exponential = little risk, switching cost low
Product life cycle stages (PLC)– Introduction– Growth– Maturity– Decline– Can a product stay in one PLC cycle for
eternity?
PLC Curve
S-Shaped Diffusion Curve
Exponential Diffusion Curve
PLC Pattern
Fad
Fashion
Classic
Note that PCL is at the product level, not the brand level
Innovation Characteristics
Perceived Value
Perceived Benefits– Relative Advantage– Use innovativeness
Perceived Costs
Risk/Uncertainty
Creating Advantage to Switch
Communicate/ demonstrate advantage
Price promotions to reduce perceived costs
Provide incentives to switch
Consumer Learning & Diffusion
The following impact diffusion rate:
Compatibility
Trialability
Complexity
Social Relevance
Observability—Others Using Innovation
Social Value
– Socially desirable
– Speeds diffusion
Legitimacy & Adaptability
Social System
Characteristics:
Modernity
Homophily
Physical Distance
Opinion Leadership
Consequences of Innovation
Consequences to consumers, businesses, & society
May offer new relative advantages
Negative consequences may arise
– Social
– Economic
Questions?