Diffusion of Innovation.pdf

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-8859-1


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Thankyou

Documents

Diffusion of Innovation.pdf