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CONSUMER INFLUENCE AND

THE DIFFUSION OF
INNOVATIONS

GROUP MEMBERS

UMER DRAZ

MB-12-43

ADEEL AJMAL

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OMAIR UR REHMAN

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KAMRAN KHALID

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MUZAMIL YOUSAF

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M ARSLAN

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M TAHIR SHAH

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DIFFUSION OF INNOVATION

Diffusion
Process
The process by which the acceptance of

an innovation is spread by
communication to members of social
system over a period of time.

ADOPTION PROCESS

The stages through which an individual

consumer passes in arriving at a decision
to try (or not to try), to continue using (or
discontinue using) a new product.

DEFINING INNOVATIONS
Firm-oriented definitions
Product-oriented definitions
Market-oriented definitions
Consumer-oriented definitions

FIRM-ORIENTED DEFINITIONS

A firm oriented approach treats the newness of

product from the prospective of the company
producing or marketing it.

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PRODUCT-ORIENTED DEFINITIONS

It focus on the features inherent in the product

itself and on the effects these features are likely
to have on consumer established usage pattern.

3 TYPES
Continuous innovation
Dynamic innovation
Discontinuous innovation

MARKET-ORIENTED DEFINITIONS
It judges the newness of a product in terms of how
much exposure consumers have to the new product .
From consumer point of view
1.A product is consider new if it has been purchased by
a relatively small percentage of the potential market.
2.A product is considered new if it has been on the
market for a relatively short period of time.

CONSUMER-ORIENTED DEFINITIONS

According to this approach a new product is any

product that a potential consumer judge to be new in
other words newness is based on the consumer
perception of the product rather than on physical
features or market realities.

PRODUCT-ORIENTED DEFINITIONS
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation

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PRODUCT CHARACTERISTICS THAT

INFLUENCE DIFFUSION

Relative Advantage
Compatibility
Complexity
Trial ability
Observability

Felt Need
Risk

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SOCIAL SYSTEM AND DIFFUSION

Does the target market have:
A positive attitude towards change
Technological skill
A general respect for education and science
A focus on rational and ordered social
relationship
An outreach perspective
The ability to accept different roles

TIME AND DIFFUSION

Purchase Time
Adopter Categories
Rate of Adoption

ADOPTER CATEGORIES

A sequence of categories that describes how

early (or late) a consumer adopts a new
product in relation to other adopters.

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EARLY ADOPTERS: DESCRIPTION

13.5% of population
Respected
More integrated into the local social system
The persons to check with before adopting a new idea
Category contains greatest number of opinion leaders
Are role models

EARLY MAJORITY: DESCRIPTION

34% of population
Deliberate
Adopt new ideas just prior to the average time
Seldom hold leadership positions
Deliberate for some time before adopting

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LATE MAJORITY: DESCRIPTION

34% of population
Skeptical
Adopt new ideas just after the average time
Adopting may be both an economic necessity and a
reaction to peer pressures
Innovations approached cautiously

LAGGARDS: DESCRIPTION
16% of population
Traditional
The last people to adopt an innovation
Most localite in outlook
Oriented to the past
Suspicious of the new

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THE PROFILE OF A CONSUMER

INNOVATOR

Interest in the Product Category

The Innovator Is an Opinion Leader
Personality Traits
Purchase and consumption characteristics
Media Habits
Social Characteristics
Demographic Characteristics
Are There Generalized Consumer Innovators?