Consumer Influence and Diffusion of Innovation
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Transcript of Consumer Influence and Diffusion of Innovation
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8/3/2019 Consumer Influence and Diffusion of Innovation
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Consumer Behavior
Hussain A. Al Awami, B.Sc. Pharm., M.Sc., MBA
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Consumer Influence and theDiffusion of Innovations
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introduction
Informal influenceon consumer behavior
Dynamic processes thataffect consumer acceptance
of new products
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Opinion Leadership
Opinion leader informally affects opinion
seekers
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Examples
Family gas barbeque
Film photograph
New TV series
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Statistics
4 times likely to be asked about political
3 times likely to be asked aboutcomputers
2 times likely to be asked about health
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WOM effectiveness
71%
friends recommendation
63% past experience:
15% advertising
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Dynamics of opinion leadership process
Credibility Positive & negative product information Information and advice Opinion leadership is category specific Opinion leadership is a two-way street
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Credibility
Objective
no incentive
of using theproduct
200-1,000 sales communication a day
Thousands of times to respond to friendrecommendation
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Positive & negative product information
Marketers favor their product/brand
Opinion leader provide both Favorable Unfavorable
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Information and Advice
Talk about their experience
Advice to buy or to avoid
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Opinion leadership is category specific
Specialize in certain products
Becomes opinion seeker for otherproducts
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Opinion leadership is a 2 way street
Opinion leader becomes opinion receiverfor the same product
They might change their opinion afterconversation
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The motivation behindOpinion Leadership
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The needs of opinion leaders
To satisfy some basic needs
May be unaware of their underlyingmotive
Benefits to opinion leaders
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The needs of opinion receivers
New product information
Reduce their perceived risk
Reduce search time
Opinion leader approval
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Profile of opinion leader, general
Innovativeness
Willingness to talk Self confidence Gregariousness Cognitive differentiation
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Profile of opinion leader, category specific
Interest
Knowledge Special interest media exposure Same age Same social status Social exposure outside group
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Diffusion of innovations
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Diffusion AND adoption process
M a c r o
pr o
c e s s
Mi c r o
pr o
c e s s
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The Diffusion Process
Innovation
Channels of communication
Social system
Time
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Innovation
No universally accepted definition
Innovation Firm Product Market Consumer oriented definition
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Product characteristics that influence diffusion
Not all products diffuse in the samemanner
Marketers need to anticipate consumersreactions to their products
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5 Characteristics
Relative advantage
Compatibility Complexity Trialability Observability
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Innovation overload
Too much information or options
Complexity of products waste time anreduce chance of acceptance of newproducts
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Channels of communication
Communication between marketers andconsumers
Communication among consumers
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The social system
Social setting
Market segment and target market
Physical, social, or cultural environment
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Social system acceptance of innovation
Modern orientation have highacceptance of new products.
Traditional orientation have lowacceptance of new products
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Typology of modern social system
Positive attitude toward change
Advanced technology General respect for education andscience
Emphasis on rational Interaction with outsiders
Members can see themselves in newroles
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Time
Amount of purchase time
Identification of adaptor categories
Rate of adoption
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The adoption process
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Stages in the adoption process
Awareness
Interest Evaluation Trial Adoption (or rejection)
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