6c576module 5
TRANSCRIPT
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Module V
Opinion Leadership Process
Diffusions of Innovations
Adoption Process.
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Opinion
Leadership
The process by which one person (the
opinion leader) informally influences the
consumption actions or attitudes of
others who may be opinion seekersor
opinion recipients.
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Opinion Leadership
OpinionLeader
OpinionReceiver
Opinion
Seeker
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Examples of Opinion Leadership
During a coffee break, a co-worker talks
about the ovie he saw last night andrecoends seeing it.
A person shows a friend photographs ofhis recent !a"asthan Desert #afarivacation and the friend suggests thatusing a polari$ing filter ight producebetter pictures.
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Special Issues
Opinion leaders are four ties ore likel% to
be asked about political issues, three tiesore likel% to be asked about coputers or
investents, and twice as likel% to be asked
about restaurants
Inforation seekers seek a &strong-tie'source when the% know little about a topic,
and &weak-tie' sources when the% have soe
knowledge
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Reasons for the Effectiveness ofOpinion Leadership
Crediility
!ositive and "e#ative !roductInformation
Information and Advice
Opinion Leadership Is Cate#ory$Specific Opinion Leadership Is a %&o$&ay Street
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Viral Mar'etin#
(u$$ )arketing
*ildfire )arketing
Avalanche )arketing
These terms describe any strategy that
encourages individuals to pass on a
marketing message to others;
The marriage of email and word-of-mouth
communication
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(ahoo)s Bu** Index
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+actors Leadin# to "e#ative ,ord$of$Mouth Behavior
Individual Factors
Product Involvement
Situational Factors
Attitudinal Factors
Negative
O!
Likelihood
ofRepurchase-
++
+
+
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,ord$of$Mouth in Action
" of
respondents
that useda referral
to make one
of these
purchases
over the
past year
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Motivations Behind OpinionLeadership
+he eeds of Opinion Leaders
+he eeds of Opinion !eceivers Purchase Pals
#urrogate (u%ers Paid (u%ers versus
Opinion Leaders
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%he "eeds of Opinion Leaders
#elf involveent #ocial involveent Product involveent
)essage involveent
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%he "eeds of Opinion Receivers
ew-product or new usage inforation
!eduction of perceived risk !eduction of search tie !eceiving the approval of the opinion
leader
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A Comparison of Motivations
-Excerpts.
O#$N$ON L%&'%RS O#$N$ON R%(%$)%RS
S%L*-$!#RO)%!%NT
!OT$)&T$ONS !educe post-purchase uncertainty or
dissonance "ain attention or status Assert superiority and e#pertise
Feel li$e an adventurer
!educe the ris$ of ma$in% a purchasecommitment
!educe search time
#RO'+(T-$N)OL)%!%NT!OT$)&T$ONS
press satisfaction or dissatisfaction
with a product or service 'earn what products are new in the
mar$etplace
'earn how to use or consume a product
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/ey 0ifferences Bet&een Opinion
Leaders and Surro#ate Buyers
O#$N$ON L%&'%R
Informal relationship with end-users
* Information e#chan%e occurs in the conte#t of a casual interaction
,omophilous (to a certain e#tent) to end-users
.oes not %et paid for advice
/ 0sually socially more active than end-users
1 Accountability limited re%ardin% the outcome of advice
2 As accountability limited3 ri%or in search and screenin% of alternatives
low 4 'i$ely to have used the product personally
5 6ore than one can be consulted before ma$in% a final decision
7 Same person can be an opinion leader for a variety of related product
cate%ories
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/ey 0ifferencesS+RRO,&T% +.%R Formal relationship8 occupation-related status
* Information e#chan%e in the form of formal instructions9advice
,eterophilus to end users (that is3 is the source of power)
0sually hired3 therefore %ets paid
/ :ot necessarily socially more active than end-users 1 ,i%h level of accountability
2 Search and screenin% of alternatives more ri%orous
4 6ay not have used the product for personal consumption
5 Second opinion ta$en on rare occasions
7 0sually speciali;es for a specific product9service cate%ory
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!rofile of Opinion Leaders
,%N%R&L$/%'
&TTR$+T%S &(ROSS
#RO'+(T (&T%,OR$%S
(&T%,OR.-S#%($*$(
&TTR$+T%S
Innovativeness
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!arket!arket!aven!aven
Individuals whose influence stems from a
%eneral $nowled%e or mar$et e#pertise
that leads to an early awareness of newproducts and services
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%he Interpersonal +lo& ofCommunication
+wo-#tep /low
0A counication odel that portra%s opinionleaders as direct receivers of inforation fro
ass edia sources who, in turn, interpret
and transit this inforation.
)ultistep /low0A revision of the traditional two-step theor%
that shows ultiple counication flows
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%&o$Step +lo& of Communication%heory
!ass !edia!ass !ediaOpinion
Leaders
Opinion
Leaders
OpinionReceivers
0the masses1
OpinionReceivers
0the masses1
Step 2 Step 3
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Multistep +lo& of Communication
%heory
!ass !edia
$nformation
Receivers
Opinion
Receivers4
Seekers
Opinion
Leaders
Step a
Step b
Step *
Step
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Issues In Opinion Leadershipand Mar'etin# Strate#y
Progras Designed to #tiulate OpinionLeadership
Advertiseents #tiulating OpinionLeadership
*ord of )outh )a% (e 1ncontrollable
2reation of Opinion Leaders
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'iffusion'iffusion#rocess#rocess
The process by which the acceptance of
an innovation is spread by
communication to members of social
system over a period of time
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&doption&doption
#rocess#rocess
The sta%es throu%h which an individual
consumer passes in arrivin% at a decision
to try (or not to try)3 to continue usin% (or
discontinue usin%) a new product
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Elements of the 0iffusion!rocess
+he Innovation
+he 2hannels of 2ounication
+he #ocial #%ste
+ie
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0efinin# Innovations
/ir-oriented definitions
Product-oriented definitions )arket-oriented definitions
2onsuer-oriented definitions
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!roduct$Oriented 0efinitions
(ontinuous
$nnovation
'ynamically
(ontinuous
$nnovation
'iscontinuous
$nnovation
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Amity Business School%elephone Innovations
Telephone
=ell Phone
Fa# 6achine
Telephone answerin% machines
=all forwardin%
=all waitin%
=aller I.
?an$in% by telephone
=all-promptin% systems
,old button
'ine-in-use indicator
!edial button
Auto dialin% feature
Touch-tone service
477 :umbers577 :umbers
Ability to send9receive email
Incorporate P.A functions
=alendar9Phoneboo$
@oice-activated dialin%
Switch from analo% to
di%ital
Include camera
!in%er stylesPlay %ames
Fa# modem
6obile fa# machines
,ome office systems
(combined fa#3 copier3
computer printer)
Plain paper fa#
Speed dial buttons
.elayed send
=opy function
Paper cutter
'iscontinuous
$nnovations
'ynamically (ontinuous
$nnovations
(ontinuous
$nnovations
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!roduct Characteristics %hatInfluence 0iffusion
!elative Advantage 2opatibilit%
2ople3it%
+rialabilit% Observabilit%
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Characteristics %hat Influence 0iffusion
(5&R&(T%R$ST$(S(5&R&(T%R$ST$(S %6&!#L%S%6&!#L%S
!elative
Advanta%e
Air travel over train travel3 cordless
phones over corded telephones
=ompatibility
"illette 6A=, over disposable
ra;ors3 di%ital telephone answerin%
machines over machines usin% tape
=omple#ity&lectric shavers3 instant puddin%s
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continued
(5&R&(T%R$ST$(S(5&R&(T%R$ST$(S %6&!#L%S%6&!#L%S
Trialability
Trial si;e ars and bottles of new
products3 free trials of software3
free samples3 cents-off coupons
Bbservability
=lothin%3 such as a new Tommy
,ilfi%er ac$et3 a car3 wristwatches3
eye%lasses
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%ime and 0iffusion
Purchase +ie Adopter 2ategories
!ate of Adoption
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&dopter&dopter
(ategories(ategories
A seCuence of cate%ories that describes
how early (or late) a consumer adopts a
new product in relation to other adopters
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Adopter Cate#ories
Innovators
1234
Early
Adopters
56234
La##ards
574
!ercenta#e of Adopters y Cate#ory Se8uence
Early
Ma9ority
6:4
Late
Ma9ority
6:4
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Innovators; 0escription
*/D of population @enturesome
@ery ea%er to try new ideas Acceptable if ris$ is darin%
6ore cosmopolite social relationships
=ommunicates with other innovators
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Early Adopters; 0escription
/D of population !espected
6ore inte%rated into the local social system The persons to chec$ with before adoptin% a
new idea
=ate%ory contains %reatest number of
opinion leaders Are role models
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Early Ma9ority; 0escription
D of population .eliberate
Adopt new ideas ust prior to the avera%e
time
Seldom hold leadership positions
.eliberate for some time before adoptin%
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Late Ma9ority; 0escription D of population S$eptical
Adopt new ideas ust after the avera%etime
Adoptin% may be both an economic
necessity and a reaction to peer pressures
Innovations approached cautiously
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La##ards; 0escription 1D of population Traditional
The last people to adopt an innovation 6ost Elocalite in outloo$ Briented to the past Suspicious of the new
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Sta#es in Adoption !rocess
N&!% O*
ST&,%
5&T 5#%NS
'+R$N, T5$S ST&,%%6&!#L%
Awareness
=onsumer is first
e#posed to the product
innovation
Ganet sees an ad for a new 6P player in
the ma%a;ine she is readin%
Interest
=onsumer is interested in
the product and searches
for additional
information
Ganet reads about the 6P player on the
manufacturerHs
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Sta#es in Adoption !rocess
Trial
=onsumer uses the
product on a limited
basis
Since an 6P player cannot be Etried li$e
a small tube of toothpaste3 Ganet buys the
6P player online from Ama;oncom3which offers a 7-day full refund policy
Adoption(!eection)
If trial is favorable3
consumer decides to use
the product on a full3
rather than a limitedbasis--if unfavorable3 the
consumer decides to
reect it
Ganet finds that the 6P player is easy to
use and that the sound Cuality is e#cellent
She $eeps the 6P player
N&!% O*
ST&,%
5&T 5#%NS
'+R$N, T5$S ST&,%%6&!#L%
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Amity Business SchoolAn Enhanced Adoption !rocess Model
#re-e7isting
problem or
Need
&wareness $nterest %valuation Trial
&doption
or
Re8ection
#ostadoption or
#ostpurchase
%valuation
%valuation
&doption or Re8ection
'iscontinuation
'iscontinuation or
Re8ectionRe8ection
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Amity Business School%he Relative Importance of 0ifferent %ypes of
Information Sources in the Adoption !rocess
$mportance
5igh
Low
&wareness
&doption
Trial
%valuation
$nterest
Personal and
interpersonal
sources
Impersonal
mass-media
sources
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Issues in !rofilin# ConsumerInnovators
Defining the 2onsuer Innovator
Interest in the Product 2ategor%
+he Innovator Is an Opinion Leader
Personalit% +raits
)edia 4abits #ocial 2haracteristics
Deographic 2haracteristics
Are +here 5enerali$ed 2onsuer Innovators6
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Ad Appeals
to +ashion
Innovators