Diffusion Of Innovation IN CBCL

What is diffusion?Diffusion is the process by which a new idea or new product is accepted by the market. The rate of diffusion is the speed that the new idea spreads from one consumer to the next.

InnovationInnovation can be viewed as the application of better

solutions that meet new requirements, in articulated needs, or existing market need’s. This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Diffusion Of Innovation

The concept of diffusion of innovation refers to the spreading of consumption of an innovation, through communication channels in a social system.

An innovation is a product, service, idea, process, behavior, or any other object which is considered new by consumers.

Innovations require acceptance from consumers to be successful, but they also require them to change their existing behavioral pattern and habits.

Theory Of Diffusion Of InnovationsDiffusion is the process by which an innovation is

communicated through certain channels over time among the members of a social system. Diffusion is a special type of communication concerned with the spread of messages that are perceived as new ideas. An innovation, simply put, is “an idea perceived as new by the individual.” An innovation is an idea, practice, or object that is perceived as new by an individual or other unit of adoption. The characteristics of an innovation, as perceived by the members of a social system, determine its rate of adoption.

Stages in adoptersInnovators: Innovators comprise 2.5 percent

of the target market(s) adopters; they are those consumers’ who are the first to go and purchase a new product or service offering. They purchase the new product and service offering not because they possess a need, but because they desire new ideas and concepts, and seek product and service innovations.

Early adopters: The next 13.5 percent of the target market(s) adopters are called early adopters. These are those consumers’ who purchase the new product and service offering not because they are fascinated towards the “new”, but because they possess a need.

Early majority: The early majority is similar to the early adopter in the sense that they buy the product/service offering because they possess a need and want to fulfill it; however, they are not as quick as the early adopters and take longer to enter into purchase.

Late majority: The next 34 percent of the adopters are referred to as the late majority. They are referred to as “late,” because i) members of their social class, reference group and peer group have already made the purchase; and the social influence is strong, and .They themselves have evaluated the new product and or service and are ready to buy it.

Laggards: The laggards are the last to adopt a new product or service offering, and as such make up the last 16 percent of the target market. They are slow in buying the innovative offering because.They are uninvolved with the product and service they do not possess much information.They remain uninfluenced by social pressure, and social ties are not very strong.They believe in making routine purchases and prefer to buy the “familiar”, than the“unfamiliar”.

Elements OF Diffusion OF Innovations

Innovtaions CommChnnaels

Time SocialSystem

Innovations-An innovation, simply put, is “an idea perceived as new by the individual.”

Commun Channels-Communication is the process by which participants create and share information with one another in order to reach a mutual understanding. A communication channel is the means by which messages get from one individual to another

Time- The rate at which an innovations is adopted by the society

Social Circle-The fourth main element in the diffusion of new ideas is the social system. A social system is defined as a set of interrelated units that are engaged in joint problem-solving to accomplish a common goal. The members or units of a social system may be individuals, informal groups, organizations, and/or subsystems

Types OF InnovtionsFirm

Oriented

Product Oriented

Market Oriented

Consumer Oriented

Firm Oriented-a product or service offering is regarded as “new,” if the company starts manufacturing or marketing it for the first time.

Product Oriented-A product and service offering is regarded as an “innovation”.If the product changes in terms of form, attributes, features, and overall benefits

Market Oriented-The market-oriented approach views “innovation” purely from a marketers’ perspective, in the sense that a product is regarded as “new”, depending on how much exposure the consumers’ have about the new product or service offering, and the total sales penetration that has occurred in the specified short period of time.

Consumer Oriented-The consumer-oriented approach to defining “innovation”, is a favored approach over others, especially in consumer behavior research, and more specifically in research related to diffusion of innovation, and adoption; the reason is that the concept of “newness”

Stages In Innovation

Knowledge-The individual is first exposed to an innovation, but lacks information about the innovation. During this stage the individual has not yet been inspired to find out more information about the innovation.

Persuasion-The individual is interested in the innovation and actively seeks related information/details.

Decision-The individual takes the concept of the change and weighs the advantages/disadvantages of using the innovation and decides whether to adopt or reject the innovation. Due to the individualistic nature of this stage, Rogers notes that it is the most difficult stage on which to acquire empirical evidence

Implementation-The individual employs the innovation to a varying degree depending on the situation. During this stage the individual also determines the usefulness of the innovation and may search for further information about it.

Confirmation-The individual finalizes his/her decision to continue using the innovation. This stage is both and interpersonal, confirmation intrapersonal may cause  the group has made the right decision.