Adoption Process

Diffusion of Innovation
How a consumer becomes a customer

Diffusion
Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system. An innovation?
is an idea perceived as new by the individual.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

The four main elements in the diffusion of new ideas are

(1) The innovation (2) Communication channels (3) Time (4) The social system (context)

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

1. The innovation
Why do certain innovations spread more quickly than others?
The innovation, to spread and be adopted should show: The characteristics which determine an innovation's rate of adoption are: Relative advantage Compatibility Complexity Trialability Observability to those people within the social system.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

2. Communication
Process by which participants create and share Mass media channels - effective in creating knowledge of innovations Interpersonal channels - effective in forming and changing attitudes toward a new idea
Influences the decision to adopt or reject a new idea.

Most individuals evaluate an innovation, not on the basis of scientific research by experts,
but through the subjective evaluations of near-peers who have adopted the innovation.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

New Product Adoption Theory

ADOPTION PROCESS - The consumer decision stages that lead acceptance/rejection - A micro process that focuses on internal forces of the consumer * Intra Personal (Psych) Influences * Inter Personal (Social) Influences * Product Selection Criteria

to innovation

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

New Product Diffusion Theory

DIFFUSION PROCESS.
The spread of an innovation from its source to the ultimate consumer. A macro process that focuses on external forces on the consumer (change agents, channels of information, types of information). Occurs in a social system (a target audience, community, etc.)

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

Speed of Diffusion
is influenced by Competitive Intensity Good Supplier Reputation Standardization of Technology Vertical Channel Coordination Resource Commitments

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

Introduction
The Adoption Process (also known as the Diffusion of Innovation) is more than forty years old. It was first described by Bourne (1959), so it has stood the test of time and remained an important marketing tool ever since. It describes the behavior of consumers as they purchase new products and services.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

Adaptation of new inventions

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

10

Adoption process
1. 2. 3. 4. 5. 6. Awareness Interest Evaluation Trial Decision Confirmation

OK, we will

buy X.
If I have to buy it I will.

No way!

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

11

Categories

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

12

Innovators
First to adopt & display that they likely to want to be ahead To be the first to own new products, well before the average consumer. They are often not taken seriously by their peers. They often buy products that do not make it through the early stages of the Product Life Cycle (PLC).

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

13

Early adopters
Are also quick to buy new products and services, So are key opinion leaders (KOLs) with their neighbors and friends as they tend to be amongst the first to get hold of items or services.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

14

Early Majority
Look to the innovators and early majority to see if a new product or idea works and begins to stand the test of time. They stand back and watch the experiences of others. Then there is a rush of mass purchases.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

15

Late Majority
Tends to purchase the product later than the average person. They are slower to catch on to the popularity of new products, services, ideas, or solutions. There is still mass consumption, but it begins to end.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

16

Laggards
These tend to very late to take on board new products and include those that never actually adopt at all. Here there is little to be made from these consumers.

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

17

MDI/IMER/DY PATIL/SYDHNEHAM/JAIN/SYMB

18