Diffusion of Innovations

W. Rofianto

Diffusion of innovations

1. The Innovation: new product, model, or service.2. The Channels of Communication: informal or formal,

impersonal or personal groups.3. The social system: a market segment.4. Time.

The macro process by which the acceptance of an innovation (i.e.,a new product, new service, new idea, or new practice) takesplace among members of a social system (or market segments),over time.

Innovation adoption process is a micro process that focuseson the stages through which an individual consumer passeswhen deciding to accept or reject a new product.

The Adoption Process

Adopter Categories

Types of Innovations

1. Continuous innovation, has the least disruptive influence onestablished behavior. Involves the introduction of a modifiedproduct. Examples: newly redesigned Apple MacBook, the latestversion of Microsoft Office, reduced-fat Oreo cookies.

2. Dynamically continuous innovation. Somewhat more disruptivebut still does not alter established behavior. It may involve thecreation of a new product or the modification of an existingproduct. Examples include digital cameras, digital videorecorders, MP3 players, DVRs, USB flash drives, and disposablediapers.

3. Discontinuous innovation. requires consumers to adopt newbehavior. Examples: airplanes, radios, TVs, automobiles, faxmachines, PCs, videocassette recorders, medical self-test kits,and the Internet

Relative Advantage

Complexity

Compatibility

Observability

Trialability

Brand Characteristics That Facilitate Adoption

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