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@Ashoka Business School, Nahsik
Nilesh Chhallare
Chapter II : Influences on the
Consumer
Influences on the Consumer Consumer needs, motives
positive and negative motivation
rational versus emotional motives.
Consumer relevant reference groups opinion leaders- family decisions making and consumption relatedroles - family life cycle
social class and consumer behaviour - influence ofculture on consumer behaviour- cross cultural context.
Diffusion of innovations: the diffusion process theadoption process - consumer innovativeness and
personality traits.
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Consumer needs
Nilesh C.3
Human needsconsumer needs are the basis of all
modern marketing.
Needs are the essence of the marketing concept.
The key to a companys survival, profitability, and
growth in a highly competitive marketing environment is
its ability to identify and satisfy unfulfilled consumer
needsbetter and sooner than the competition.
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Maslows Hierarchy of Needs
Nilesh C.4
1. Physiological
2. Safety
3. Social
4. Esteem
5. Self actualization
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Types of Needs
Nilesh C.5
Innate Needs
Physiological (or biogenic) needs that are considered
primary needs or motives
Acquired Needs
Learned in response to our culture or environment. Are
generally psychological and considered secondary needs
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Nilesh C.6
Innate needs are physiological orbiogenic, and
include food, water, air, clothing, shelter, and sex.
These needs (innate) are considered primary needs or
motives.
Types of Needs
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Nilesh C.7
Acquired needs are needs that we learn in response to
our culture or environment and include the need for
self-esteem, prestige, affection, power, and learning.
Because acquired needs are generally psychological (i.e.,
psychogenic), they are considered secondary needs or
motives.
They result from the individuals subjective
psychological state and from relationships with others.
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Motive
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A construct representing an unobservable force that
stimulates and compels a behavioral response and
provides specific direction to that response.
Motivation is produced by a state of tension, by
having a need which is unfulfilled. Consumers want to
fulfill these needs and reduce the state of tension.
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Model of the Motivation Process
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Motivation
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Positive Vs Negative Motivation
Rational Vs Emotional motivation
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Reference
Group
A person or groupthat serves as a point
of comparison (or
reference) for an
individual in the
formation of either
general or specific
values, attitudes, or
behavior.
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Nilesh C.12
Defining Reference Group
Two or more people who interact to accomplish
either individual or mutual goals
A membership group is one to which a person either
belongs or would qualify for membership
A symbolic group is one in which an individual is
not likely to receive membership despite acting like a
member
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Nilesh C.13
Classification of Reference Group
Normative Reference Groups
Comparative Reference Groups
Direct Reference Group
Indirect Reference Group
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Normative Reference Groups
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A group that influences the general values or behaviour
of an individual.
An example of a childs normative reference group is
the immediate family, which is likely to play an
important role in molding the childs general consumer
values and behaviour.
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Comparative Reference Groups
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Reference group serving as benchmarks for specific or
narrowly defines attitude s or behavior are called
comparative reference group
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Direct & Indirect Reference Group
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Direct Reference Group are those groups with which a
person interacted on a direct basis
Indirect Reference Group are those groups with whom
a person dose not have direct face-to-face contact.
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Factors that affect RG influence
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Information and Experience
Credibility, attractiveness and power of the RG
Conspicuousness of the product
Conformity
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Major Consumer Reference Group
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Consumer relevant reference groups
Nilesh C.19
Friendship groups
(informal- unstructured- lack specific authority)
Shopping groups
social motive- to help to reduce the risk in decision
making
Work groups
Virtual Groups or Communities
Brand Communities
Consumer Action groups
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Celebrity & Other Reference groups
appeals
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Celebrities
The expert
The Common man
The executive & employee spokesperson
Trade or spoke character
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Celebrities (Types of appeals)
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Testimonials : Based on personal usage attestation
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Nilesh C.22
Endorsement : celeb lends his or her name and
appears on behalf of a product or serves with which he
or she may or may not be an expert
Celebrities (Types of appeals)
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Nilesh C.23
Actor : Celeb presents a product or service as a part of
character endorsement
Celebrities (Types of appeals)
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Spokesperson : Celeb represents the brand or a
company over an extended period of time
Celebrities (Types of appeals)
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Importance of
Celebrity
Characteristic
s According to
Product Types
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The expert
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A person who, because of his occupation , special
training, or experience , is in unique position to help
the prospective consumer evaluate the product or
services that the advert promotes
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The common man
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Testimonial and satisfied customers
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The Executive & Employee
spokesperson
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Trade or spokes character
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Presents idealized image and dispense information that
can be very important for the product or service that
they work for
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Opinion Leadership & Opinion
leaders
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Opinion leadership is a process by which one
person informally influences the actions or attitude
of others, who may be opinion seeker or opinion
recipient.
It is interpersonal & informal
Takes place in between two or more people
None of whom represents a commercial selling source
that would gain directly from the sale of something
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Defining Opinion Leadership
We seek advice in their respective area of expertiseform such people around us whom we perceive asexperts in one thing or the other
Such people are known as Opinion Leaders andpeople seeking advice are known as Opinion Seekers
A social word-of-mouth communication between theopinion giver and opinion seeker
Opinion leadership takes place under 3 situations
When an individual actively seeks advice fromothers
When an individual voluntarily providesinformation to others
When information is generated in the course of normal interactions of a rou
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Dynamics of Opinion Leadership
Credibility
Positive and negative product information
- Favorable & unfavorable information adds to their credibility.
Information and Advice
- Brand- Product- service
Category-specific.- Specialization
Two-way Communication
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The Motivation behind Opinion Leadership
Opinion Leader
Self-involvement
Product-involvement
Social-involvement
Message-involvement
Opinion Seeker and Receiver
Reduction in perceived risk associated with productpurchase
Reduction of searching for information
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family decisions making and consumption
related roles
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Family
Changing nature of family
Socialization of family members
Functions of family
Family decision making
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Defining Family
Two or more persons related by blood, marriage or
adoption who reside together constitute a family
A Household A housing unit shared by persons who
are either related or unrelated to each other
A Housing Unit A house, apartment or even shared,
single, rented room, occupied by students
A Family Household A husband, wife and children
Non-family Household A group of working
bachelors or students living together
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Types of Family Structures
Married Couple
Nuclear Family
Extended Family
Joint Family
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Nontraditional Households Room mates
Unmarried couples
Single-parent households (Single parent with at leastone child)
Single person households (unmarried, divorced orwidower)
Voluntary childless couples (couples who voluntarilychoose not to have a child)
Stay-at-home dads
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Pets as Family Members
Pets are inseparable part of the family
Family have high emotional attachment with them
Consume huge amount of money spent on food,
exercise, equipment, medicines, hygiene products and
pet care center
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Role of Family
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Economic Well-being
Emotional Support
Family Lifestyle
Consumer Socialization A process by which young people acquire skills, knowledge and
attitudes relevant to their functioning as consumers in the market-place
Types of Parents Authoritarian
Indulgent
Socialization Approach Instrumental Training
Modeling
Mediation
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A series of Predictable Stages
A progression of stages through which many Family
members pass
It is a composite variable created by systematically
combining demographic variables as Marital Status, Size
of Family, Age of Family members & Employment
Status
Helps to understand the behavior of consumers at variousstages of their lives so as to effectively design the right
Marketing Strategy
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Family Life Cycle
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Five Basic Stages :
Bachelorhood : Young Single Adult living alone
Honeymooners : Young Married Couples with no children
Parenthood :Married Couples with at least one child
Post parent Hood: Older Married Couple with no children athome
Dissolution: One Surviving Spouse
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Family Life Cycle
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Family Life Cycle
Stage One: Bachelor Hood:
Single Working Men/Women
Two Groups:
Living with Parents:
Entertainment, Clothes & Personal Care
Living Independently:
Rent, Home Furnishings, Automobile , Clothes & accessories
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Stage Two: Honeymooners :
Post Marriage before Kids
Lifestyle shifts to Joint Lifestyle
Joint Decisions & Shared Roles
Savings, Household Furnishings, Major Appliances and host of
utensils and accessory items
Movie Tickets, Expensive Cloths and outings
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Family Life Cycle
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Family Life Cycle Stage Three: Parenthood:
Changes in Lifestyle after addition of child
Three Stages:
Full Nest I: Immediately after birth of child
New Purchase in areas of Baby Clothes, Furniture, Food and
Health Care Products
Full Nest II: Improved Financial Position of Family
Better Buying Experiences Relatively Low Influence of
Advertising
Full Nest III:
Children Start getting employed
High Expenditure for Durable Goods, New Furniture, Luxury
Appliances and Cars
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Family Life Cycle
Stage Four: Post Parent Hood:
Children Leave homes
Empty Nest I: Satisfactory Financial Position
Leisure Time, Frequent Traveling, Vacations & Gifts
Empty Nest II: Low Income
Medical Care, Health Product a& basic necessities
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Family Life Cycle
Stage Five : Dissolution Stage :
Death of one Spouse
Simple Pattern of living and very economical
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Marketing Applications
Understand the Differences in consumption Patterns ofdifferent households
Develop Product & Promotional Strategies withrecognition of changing roles & responsibilities
Use Concept of Family Life Cycle as a basis forSegmenting the Markets
Target Products & Services Properly for Family Roles inDecision making
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social class and consumer behaviour
Social Class :Social Class : The division of members of asociety into a hierarchy of distinct status classes, so
that members of each class have either higher or
lower status than members of other classes.
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Nilesh C.11-49
Characteristics of Social Class
Is hierarchical
Is a natural form of segmentation
Provides a frame of reference for consumer
behaviour
Reflects a persons relative social status
individuals can up or down the social class
hierarchy
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Social Class and Social Status
Status is frequently thought of as the relativerankings of members of each social class
wealth
power
prestige
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Social Comparison Theory
states that individuals compare their own possessions
against those of others to determine their relative social
standing.
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Social Classes in India
At time of Independence The upper class The lower class
Modern India Upper 1% Upper middle - 6% Middle middle - 7% Lower middle 10% Lower more than 75%
Indian Youth Balancing lot
Money maniacs Desi youth Cool guys Repressed souls
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Social Class Mobility Upward mobility
Downward mobility
Society
Open
Close
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Social Class Measurement
Problems with Measurement of Social Class
Change in demographics and family structure
People with Highly different background, education and
occupation cant put in a certain hierarchy
People under pressure to maintain lifestyle
Over privileged Household
Under privileged Household
Intergenerational shift in social class
Familys social class measurement still based onHusbands income only
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Social Class and Consumer Behavior
Cultural Capital
The Affluent Consumer
The Non-affluent Consumer
Old Money and the Nouveaux Riche
Techno Class
Status Symbol
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Nilesh C.56
Defining Culture Beliefs: Something believed as true
Ethics good, moral
Aesthetics beautiful, pleasant
Doctrine political, social, ideological
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To Which Cultural Value or Values Is This Products Advertising Appealing?
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Convenience in Food Preparation
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Nilesh C.59
Defining Culture
Shared behavior Systematized way people do things
Avoid confusion
Allow cooperation
Behavior imposed by sanctions, rewards andpunishment
Collective behavior, beliefs, values, habits,tradition and heritage of a society
Sum total of learned beliefs, values and customsthat serve to direct the consumer behavior of
members of a particular society
influence of culture on consumer behaviour
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Dynamics of Culture Omnipresent Culture
Satisfies changing need
Culture is learned
Enculturation and acculturation
Language and Symbols
Ritual
Culture is a group phenomenon
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In Terms of Culture, Do You Consider This Product to
Be a Good Morning Beverage? Why or Why Not?
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Culture Is Learned
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of culture
Enculturation The learning of ones
own culture
Acculturation The learning of a new or
foreign culture
Issues
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Discussion Questions
How do U.S. marketers target consumers who
have moved to the U.S. and are new to the
U.S. culture?
How do U.S. marketers target consumers who
live outside the U.S. and are adopting parts of
the U.S. culture?
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Culture Is Learned
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of culture
Issues Without a common
language ,shared meaning
could not exist
Marketers must choose
appropriate symbols in
advertising
Marketers can use knownsymbols for associations
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How Does a
Symbol
Convey the
Products
Advertised
Benefits?
65Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eleven Slide
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They Provide
Additional
Meaning to the
Ad.
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Culture Is Learned
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of culture
Issues
A ritual is a type of
symbolic activity consisting
of a series of steps
Rituals extend over the
human life cycle
Marketers realize that
rituals often involve
products (artifacts)
67Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eleven Slide
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Selected Rituals and Associated Artifacts
SELECTED RITUALS TYPICAL ARTIFACTS
WeddingWhite gown (something old, somethingnew, something borrowed, something blue)
Birth of child U.S. Savings Bond, silver baby spoon
Birthday Card, present, cake with candles
50th Wedding anniversary Catered party, card and gift, display of photos of the couples life together
Graduation Pen, U.S. Savings Bond, card, wristwatch
Valentines Day Candy, card, flowers
New Years EveChampagne, party, fancy dress
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Culture Is Learned
Enculturation and
acculturation
Language and
symbols
Ritual
Sharing of Culture
Issues To be a cultural
characteristic, a belief,
value, or practice must be
shared by a significant
portion of the society
Culture is transferred
through family, schools,
houses of worship, andmedia
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Culture is Dynamic
Evolves because it fills needs
Certain factors change culture
Technology
Population shifts
Resource shortages
Wars Changing values
Customs from other countries
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The Measurement of Culture
Content Analysis
Consumer Fieldwork
Value Measurement
Instruments
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SubcultureSubculture
A distinct cultural group
that exists as an
identifiable segment
within a larger, more
complex society.
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Discussion Questions
Would you categorize yourself as belonging to any
subcultures?
How does it affect your consumer purchases?
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Examples of Major Subcultural
Categories
CATEGORIES EXAMPLES
Nationality Greek, Italian, Russian
Religion Catholic, Hindu, Mormon
Geographic region Eastern, Southern, Southwestern
Race African American, Asian, Caucasian
Age Teenagers, Xers, elderlyGender Female, male
Occupation Bus driver, cook, scientist
Social class Lower, middle, upper
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Why Does One of the Worlds Most Highly Regarded Wristwatch
Brands Use a Single Global Advertising Strategy (Only Varying theLanguage)?
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They Speak to Them in Their Own Language to
Maximize their Comfort Zone.
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Cross Cultural context
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Country of origin effect (COE)
Country of design (COD)
Country of assembly (COA)
County of parts (COP)
National identity
Growing global middle class
Are global brand different : quality signals, global
myth, social responsibility
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Diffusion of Innovations
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The Diffusion process
The adaption process
Consumer innovativeness and personality traits
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What Is
Shown or
Stated in
This Ad That
Is Designed
to Attract
Consumers
to This New
Product?
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New Flavor
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Diffusion
Process
The process by which the
acceptance of an
innovation is spread by
communication to
members of a social
system over a period of
time.
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Elements of the Diffusion Process
The Innovation
The Channels of Communication
The Social System
Time
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The Innovation
Firm-oriented definitions Product is new to the company
Product-oriented definitions Continuous
Dynamically continuous
Discontinuous
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What Kindof
Innovation
Is Shown
Here, and
Why?
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Continuous
Innovation
The Product
is Modified
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The Innovation
Market-oriented definitions Based on consumer exposure
Consumer-oriented definitions Consumer judges it as new
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The Innovation
Product Characteristics
Degree to which consumers consider it superiorto existing substitutesRelative Advantage
Degree to which consumers feel it is consistentwith their present needs, values, and practicesCompatibility
The degree to which it is difficult to understandor useComplexity
The degree to which it can be tried on a limitedbasisTrialability
The degree to which its benefits can beobserved, imagined, or describedObservability
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Channels of Communication
Channels of communication
Marketer to consumer
Consumer to consumer
Influential impersonal sources
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The Social System Modern social systems accept more innovation
due to their: Positive attitude toward change
Advanced technology and skilled labor force
Respect for education and science
Emphasis on rational and ordered socialrelationships
An outreach perspective where members interactwith outsiders
A system where members can see themselves indifferent roles
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Time
Purchase Time
Adopter Categories
Rate of Adoption
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Adopter Categories
Category 1 -Innovators
First tobuy themininetbook
Category 2 Early adopters
Will buymininetbookshortlyafter itsintroduction
Category 3 Early Majority
Membersof the 1st
of themassmarketwhowouldpurchasethe mini
netbook
Category 4 Late Majority
Secondhalf ofthe massmarketwhowouldpurchasethemature
mininetbook
Category 5 Laggards
Very lasttopurchasethe mininetbook,if at all
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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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NAME OF
STAGE
WHAT HAPPENS DURING
THIS STAGE
EXAMPLE
Awareness Consumer is first exposed to
the product innovation.
Eric sees an ad for a 23-inch thin LCD
HDTV in a magazine he is reading.
Interest Consumer is interested in the
product and searches for
additional information.
Eric reads about the HDTV set on the
manufacturers Web site and then
goes to an electronics store near his
apartment and has a sales person
show him the unit.
Evaluation Consumer decides whether
or not to believe that thisproduct or service will satisfy
the need a kind of mental
trial.
After talking to a knowledgeable
friend, Eric decides that his TV will fitnicely on top of the chest in his
bedroom. He also calls his cable
company and finds out that he can
exchange his standard cable box at
no cost for an HDTV cable box.
Stages in Adoption Process
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NAME OF
STAGE
WHAT HAPPENS
DURING THIS STAGE
EXAMPLE
Trial Consumer uses the
product on a limited basis
Since the HDTV set cannot be
tried like a small tube of
toothpaste, Eric buys the TV at
this local electronics store on his
way home from work. The store
offers a 14-day full refund
policy.
Adoption
(Rejection)
If trial is favorable,
consumer decides to use
the product on a full,
rather than a limited basis
if unfavorable, the
consumer decides to
reject it.
Eric loves his new HDTV set
and expects many year of
service from it.
Stages in Adoption Process
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NAME OF
STAGE
WHAT HAPPENS
DURING THIS STAGE
EXAMPLE
Trial Consumer uses the product
on a limited basis
Since the HDTV set cannot be
tried like a small tube of
toothpaste, Eric buys the TV at this
local electronics store on his way
home from work. The store offers a
14-day full refund policy.
Adoption
(Rejection)
If trial is favorable,
consumer decides to use the
product on a full, ratherthan a limited basis if
unfavorable, the consumer
decides to reject it.
Eric loves his new HDTV set and
expects many year of service from
it.
Stages in Adoption Process (continued)
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Diffusion Curves for Adopter Categories
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Pre-existing
problem orneed
Awareness Interest Evaluation trialAdaption
or rejection
Postadaption or
postpurchaseevaluation
Adaptionor
rejection
Discontin
uation
Evaluation
rejectionDiscontinuation
or rejection
Enhanced Adaption Process
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The Consumer Innovator
Interest in product category
Innovator is an Opinion leader
Relatively small group of consumers who are the
earliest purchasers of the new products
105
105
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The Consumer Innovator Personality traits
Perceived risk and venturesomeness
Purchase and consumption characteristics
Media habits
106
106
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The Consumer Innovator
Social characteristics
Demographic
characteristics
107
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Comparative Profiles of the ConsumerInnovator and Noninnovator
108
Characteristic Innovator Noninnovator
Social Characteristics
Social integration More Less
Social striving More Less
Group memberships More Less
Demographic Characteristics
Age Younger Older
Income Higher Lower
Education More Less
Occupational status Higher Lower
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Thank You!!!
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