l10 diffusion of innovations

8/13/2019 L10 Diffusion of Innovations

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Diffusion of Innovations

An innovat ion is an idea, practice, or product perceived to be

new by the relevant individual or group.

The manner by which a new

product spreads through amarket is basically a group

phenomenon.

New products can be placed

on a continuum from nochange to radical change,

depending on the market’s

perception.

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Categories of Innovat ion

Adop t ion Process

Diffusion Rate

Adop ter Categories

Market ing Strategies and th e Dif fusion Proc ess

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Categories of Innovations

Continuous Innovation

Adoption of this type of innovation requires relatively minor

changes in behavior(s) that are unimportant to the consumer.

Dynamically continuous Innovation

Adoption of this type of innovation requires a moderate

change in an important behavior or a major change in a

behavior of low or moderate importance to the individual.Discontinuous Innovation

Adoption of this type of innovation requires major changes in

behavior of significant importance to the individual or group.

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Adopt ion Process and Extended Decis ion Making

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Diffus ion Rates for Popular Consumer Electro nics (Cumulat ive)

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Facto rs Affect ing the Spread o f Inno vat ions

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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.




Innovators

Early Adop ters

Early Major ity

Late Major i ty

Laggards

Adopter Categories



Innovators: Description

• 2.5% of population

• Venturesome

• Very eager to try new ideas

• Acceptable if risk is daring• More cosmopolite social relationships

• Communicates with other innovators



Early Adopters: Description

• 13.5% of population

• Respected

• More integrated into the local social system

• The persons to check with before adopting a new idea• Category contains greatest number of opinion leaders

• Are role models



Early Majority: Description

• 34% of population

• Deliberate

• Adopt new ideas just prior to the average time

• Seldom hold leadership positions• Deliberate for some time before adopting



Late Majority: Description


• Skeptical

• Adopt new ideas just after the average time

• Adopting may be both an economic necessity and areaction to peer pressures

• Innovations approached cautiously



Laggards: Description


• Traditional

• The last people to adopt an innovation

• Most “localite” in outlook • Oriented to the past

• Suspicious of the new



Diffusion Process and Marketing

Strategy• Identify innovators and early adopters andcater to them

• Move consumers from awareness to adoption

• Make effective use of word-of-mouth

communications

l10 diffusion of innovations

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