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7/28/2019 Diffusion of Innovation.pdf
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Diffusion of Innovation
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Diffusion of Innovation isassociated with:
How consumers accept new products
& brands
How they accept a set of marketing
mix elements formulated for a brand
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Diffusion
The process by which and innovation is
communicated through certain channels over
time among the members of a social system
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Innovation
An idea, practice or object perceived as new by
an individual or other unit of adoption
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New products can be divided into:
Discontinuous
Innovation
e.g.
Telephone
Dynamically
Continuous
Innovations
e.g. Cell
Phone
Continuous
Innovation
e.g. Cell
Phone with
Camera
FrequentInfrequentRare
Large
Moderate
Small
DegreeofBehavioralChan
geRequired
Frequency of Occurrence of Innovation
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Types of Innovation- examples
Electric cars (Reva) DiscontinuousInnovation
Dynamically continuous innovation:Internet shopping, electric shavers
Continuous innovation: remotecontrol for lights
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Brands that did not diffuse inIndia
Soya drink from Godrej (Greatshake)
Breakfast juices (Tang Orange juice)
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Factors Affecting Innovation Adoption
Relative Advantage
Compatibility
Complexity Trialability
Ovservability
Other factors are Type of social system, Typeof decision, Marketing effort, Need
fulfillment/problem solving, and perceived risk
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Consumer Resistance to Innovation
The resistance offered by the consumers to an
innovation, either because it poses potential
changes from a satisfactory status quo or
because it conflicts with their belief structure
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Consumer Resistance to Innovation
Innovation
Exposure
Flexible to
Modification
Modification
Adoption
Rejection
ResistanceNo
No
Yes
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Channels of Communication
Marketers to Consumers
Among Consumers
Product dedicated websites
Company websites Product related magazine and journals
Consumer shows, exhibitions and fairs
TV shows dedicated to innovations
SMS sponsored television programmes
Beauty pageants
National level awards and game shows
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Social System
A set of inter-related units that are engaged in
joint problem solving to accomplish a common
goal
Each social system has a social hierarchy and
communication network
Types
Traditional
Modern
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Time
Time has a bearing on
The adoption process
Innovativeness of the consumers
The innovations rate of adoption
Adoption Process5 stages
Awareness
Interest
Evaluation
Trial
Adoption/Rejection
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An Enhanced Model of Adoption ProcessConsumer Innovativeness Pre-existing Need Venturesomeness andinterest in Product Category
Awareness
Interest
TrialEvaluation
Rejectionorpostponement
Adoption Rejection
Continued
Rejection
Later
Adoption
Post Adoption
EvaluationContinued
Rejection
Later
Adoption
Continued
AdoptionDiscontinuance
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Time
Consumers Innovativeness Innovativeness is the degree to which an individual or adoption units
adopts a new idea as compared to other members of the system. Sosome consumers are more innovative than others
Five adopter categories
Innovators Early adopters
Early majority
Late majority
Laggards
Rate of Adoption The speed with which an innovation spreads within the social system
Depends upon
Type of innovation
The product category
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A profile of consumer innovator
The individuals who are the first ones to adopt
an innovation in a social system
Innovators as an Opinion Leader and ChangeLeader
The role of some key individuals within the social
system significantly affects the rate of adoption
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Summary
The Diffusion Concept
A Profile of a Customer Innovator
http://images.google.co.in/imgres?imgurl=http://www.bio.mq.edu.au/ecology/vegfunction/activity/2005/imgs/VF_sidepic_summary.jpg&imgrefurl=http://www.bio.mq.edu.au/ecology/vegfunction/activity/2005/summary.html&h=252&w=153&sz=10&hl=en&start=14&tbnid=uvL7LU0GsUq-kM:&tbnh=111&tbnw=67&prev=/images%3Fq%3DSummary%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DISO-8859-17/28/2019 Diffusion of Innovation.pdf
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Thankyou
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