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8/3/2019 Adoption and Diffusion of In Nova Tins
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INNOVATION
Definitions:
Any idea, practice or material artifact perceived to be newby the relevant adopting unit
A continuum or range of newness based on the productseffect on established consumption patterns
Three categories of innovation:a) Continuous innovations
b) Dynamically continuous innovations
c) Discontinuous innovations
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Innovations contd
a) Continuous innovations:
- Least disrupting influence on established
consumption patterns- Product alternation, rather than total new
product establishment
E.g.
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Innovations contd
b) Dynamically continuous innovations:
- More disrupting effects
- Established patterns not altered
- New product creation or alteration of
existing items
- Eg:
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Innovations contd
c) Discontinuous innovations:
- New products
- New behaviour patterns
- E.g
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ADOPTION: The acceptance and continued
use of a product or brand by an individual.
The adoption model:
Awareness
Comprehension
Attitude
Legitimation
Trial
Adoption
Mere awareness, very little info, no well
formed attitude.
Knowledge & understanding of product and
what it can do
Fav/ Unfav behaviour, predispositiontowards product
Convinced about purchase; gathers
additional information
Tests/ tries product to determine utility;Cognitive or actual use.
Determines whether to use product in full
scale way; Continuous purchase/ use
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Significance of analysing adoption
process:
1) Not all consumers go through the adoption
process at the same speed.
2) Marketers communication forms vary intheir effectiveness over the different stages in
adoption process:
- Early stages, mass medial more effective
- Later stages, personal selling and WOM
more effective.
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Causes of incompleted adoption process
Acceptance process stage Marketing-organisation
causes
Consumer causes
Awareness Poorly used or too little
communication
Selective exposure
Selective perception
Comprehension Communication difficult to
understand
Selective retention
Attitude Communication not
persuasive
Complacency
Suspended judgment
Legitimation Poor source effect of
communication
Peer-group pressure against
adoption/ Laws regulating use
of innovation
Trial Behavioral response not
specified in comm
Poor distribution system
Good alternative
Innovation not available
Adoption Failure to develop new
products/ Improve old prods
Replaced by another
alternative
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Categories of Adopters
Innovators
Technology
Enthusiasts
Early
AdoptersVisionaries
Late
MajorityConservatives
Early
MajorityPragmatists
Laggards
Skeptics
2.5% 13.5% 34% 34% 16%
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Innovators:
- Venturesome, eager to try new ideas- More risk capital( material and social) and afford to
take calculated risks.- Well educated, from well-established families,
cosmopolitan
- Information from other innovators and impersonaland scientific sources.
- Belong to state/ national/ regional organisations- Respected by local community for their success.
- Appreciate technology for its own sake
Importance: They are the gatekeeper to the nextgroup of adopters.
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Early Adopters:
- More socially integrated.
- Younger than late adopters
- High social status, above average education
- Greatest contact with sales people- Opinion leaders
- Respected as good sources of information and adviceabout innovation
- Act as role models
Importance: For speeding the diffusion process.
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Early Majority:
- Most deliberate- Adoption process is longer than the previous two grps
- Adopt an innovation just before the avg member of asocial system does.
- Slightly above average in age, education and socio-economic status
- Active member, rather than leader
- Considerable contact with salespeople
- Neighbors and friends of early adopters
Importance: Crucial to legitimise the new idea for others
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Late Majority:
- Risk averse, technology shy
- Very price sensitive
- Above average in age,
- Below avg in education, social status and income
- Little opinion leadership
- Heavy reliance on informal sources of
information and influence.
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Laggards:
- Last group to adopt
- Tradition bound, want to maintain status quo
- Suspicious of innovations and perhaps of those
who offer them- Long length of adoption process
- Oldest of the adopter category
- Least education, lowest social status and income- No opinion leadership
- Little participation in formal organisations
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Promotions at various stages:ADOPTER CATEGORY PROMOTIONAL APPROACHES
Innovator and early adopters Stress on excitement of ownershipHow product is new and revolutionary
Personal selling
Credible spokespersons
Event marketing, etc..Early Majority Mass advertisements
Dealer promos
Sales promos- coupons, trial packs
Opinion leaders
Rely on peer-pressure
Late majority Guarantees and seals of approval (ISI, ISO, IDAapproved, etc..)
Demonstrate product in store.
Extended warranty, service/repair centers
Laggards Spend little on promotions, as interest isdisappearing