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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.

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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.

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Elements of the Diffusion Process


The Innovation ( a new idea, concept)
The Channels of Communication (mass
media, sales people )

The Social System ( Target market ) Time


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Firm-oriented definitions

Defining Innovations

Product is new to the company

Product-oriented definitions
Continuous-- introduction of modified pdct rather than a
totally new pdct

Dynamically continuousCreation of new pdct or


modification of existing pdct e.g. MP3 players, digital cameras

Discontinuous--- Requires consumers to adopt new

behavior patterns e.g. automobiles ,Internet, TVs, airplanes

Market-oriented definitions
Based on consumer exposure ( A pdct is considered
new if used by small percentage of potential market or been on the market for a relatively short period of time )

Consumer-oriented definitions
Consumer judges it as new----- consumer perception
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What type of product innovation is this product?

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Telephone Innovations
Telephone a discontinuous innovation of major magnitude has produced a variety of both dynamically continuous

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Product Characteristics That Influence Diffusion


Relative AdvantageDegree to which existing
customers perceive a new pdct as superior to existing substitutes e.g. Fax machines, HDTV over standard TV

CompatibilityExtent to which consumers feel new pdct


is consistent with their present needs E.g. Difficult for men to think of a hair removal cream for shaving compared with Razors

Complexity--- Degree to which new pdct is difficult to


understand or use .E.g. disposable razors ,

Trialability---Degree to which a new pdct is tried on a


limited basis .E.g. free samples given , Cent off coupons given

Observability---Is the ease with which a pdcts benefit or


attribute can be observed ( communicability ) E.g. Fashion items that have a high degree of visibility like sneakers, laptops
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Time and Diffusion


Time is the backbone of Diffusion process

Amount of Purchase Time Amount of time that


elapses between consumers initial awareness of a new pdct & point at which they purchase the pdct . When Purchase time is short the diffusion is faster

Identification of Adopter Categories--Where consumers stand in relation to other consumers in time of their purchase--- Innovators, Early Adopters, Early Majority ,Late Majority, Laggards

Rate of Adoption---- How quickly it takes for a new


pdct to be accepted by those who will ultimately adopt it .
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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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Adopter Categories

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This ad is designed to appeal to innovators.

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The Buyer Decision Process


Problem Recognition (Need Recognition) Awareness (Information Search)

Evaluation of Alternatives
Purchase Decision Postpurchase Behavior
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Stages in Adoption Process


WHAT HAPPENS NAME OF DURING THIS STAGE STAGE Awareness Consumer is first exposed to the product innovation. Consumer is interested in the product and searches for additional information. Consumer decides whether or not to believe that this product or service will satisfy the need--a kind of mental trial. EXAMPLE Eric sees an ad for a 23-inch thin LCD HDTV in a magazine he is reading. Eric reads about the HDTV set on the manufacturers Web site and then goes to an electronics store near his apartment and has a sales person show him the unit. After talking to a knowledgeable friend, Eric decides that his TV will fit nicely on top of the chest in his bedroom. He also calls his cable company and finds out that he can exchange his standard cable box at no cost for an HDTV cable box.
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Interest

Evaluation

Stages in Adoption Process


WHAT HAPPENS NAME OF DURING THIS STAGE STAGE EXAMPLE

Trial

Consumer uses the product on a limited basis

Adoption (Rejection)

If trial is favorable, consumer decides to use the product on a full, rather than a limited basis--if unfavorable, the consumer decides to reject it.

Since the HDTV set cannot be tried like a small tube of toothpaste, Eric buys the TV at this local electronics store on his way home from work. The store offers a 14-day full refund policy. Eric loves his new HDTV set and expects many year of service from it.

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An Enhanced Adoption Process Model

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Issues in Profiling Consumer Innovators Defining the Consumer Innovator Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits ( uniqueness, take risks ) Media Habits( Innovators have more exposure to
magazines & low exposure to TV )

Social Characteristics( Innovators are more


socially involved )

Demographic Characteristics(
Tend to be younger )

Innovators

Are There Generalized Consumer


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