Schiffman Diffusion of Innovation
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CHAPTER FOURTEENConsumers and the Diffusion of Innovations
Learning Objectives1. To Understand the Twofold Process of the Spread and Acceptance of Innovative Products and Services Within a Social System. 2. To Understand How Innovative Products and Services Spread (or Fail to Spread) Within a Social System. 3. To Understand How Individual Consumers Decide Whether or Not to Try and Adopt a Particularly Innovative Product or Service. 4. To Understand the Personal Characteristics of Innovators.Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fourteen Slide 2
What Is Shown or Stated in This Ad That Is Designed to Attract Consumers to This New Product?
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New Flavor
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Diffusions of Innovation How are new products and services accepted?
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Diffusion Process
The process by which the acceptance of an innovation is spread by communication to members of a social system over a period of time.
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Elements of the Diffusion Process
The Innovation
The Channels of CommunicationThe Social System
TimeCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fourteen Slide 7
The Innovation Firm-oriented definitions Product is new to the company
Product-oriented definitions Continuous Dynamically continuous Discontinuous
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What Kind of Innovation Is Shown Here, and Why?
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Continuous Innovation The Product is Modified
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The Innovation Market-oriented definitions Based on consumer exposure
Consumer-oriented definitions Consumer judges it as new
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The Innovation Product CharacteristicsRelative Advantage Compatibility Complexity Trialability Observability Degree to which consumers consider it superior to existing substitutes Degree to which consumers feel it is consistent with their present needs, values, and practices The degree to which it is difficult to understand or use The degree to which it can be tried on a limited basis The degree to which its benefits can be observed, imagined, or described
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Developing a Marketing Strategy for Diffusing Innovations - Figure 14.4
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Channels of Communication Channels of communication Marketer to consumer Consumer to consumer Influential impersonal sources
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The Social System Modern social systems accept more innovation due to their: Positive attitude toward change Advanced technology and skilled labor force Respect for education and science Emphasis on rational and ordered social relationships An outreach perspective where members interact with outsiders A system where members can see themselves in different rolesCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fourteen Slide 15
Time Purchase Time Adopter Categories Rate of Adoption
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Adopter CategoriesCategory 1 InnovatorsCategory 2 Early adopters Category 3 Early Majority Category 4 Late Majority Category 5 Laggards
First to buy the mini netbook
Will buy mini netbook shortly after its introducti on
Members of the 1st of the mass market who would purchase the mini netbook
Second half of the mass market who would purchase the mature mini netbook
Very last to purchase the mini netbook, if at all
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Diffusion Curves for Adopter Categories Figure 14.5
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Discussion Question Which adopter category are you? Does it differ with different product categories? How about your parents, what category are they? Is age a factor in innovation behavior?
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Rate of Adoption How long does it take a new product to be adopted by the members of a social system?Product Pager Telephone Number of years 41 38
Cable televisionFax machine
2522
VCRCell pone
99
PC
7
Time Required for Electronic Products to Penetrate 10 percent of UK market Table 14.3Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fourteen Slide 20
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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Stages in Adoption Process Table 14.4NAME OF STAGE WHAT HAPPENS DURING THIS STAGE Awareness EXAMPLE Consumer is first exposed to the Eric sees an ad for a 23-inch thin LCD product innovation. HDTV in a magazine he is reading. Consumer is interested in the product and searches for additional information. 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.Chapter Fourteen Slide 22
Interest
Evaluation
Consumer decides whether or not to believe that this product or service will satisfy the need a kind of mental trial.
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Stages in Adoption Process Table 14.4 (continued)NAME OF STAGE WHAT HAPPENS DURING THIS STAGETrial Consumer uses the product on a limited basis
EXAMPLE
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.
Adoption (Rejection)
If trial is favorable, consumer Eric loves his new HDTV set and expects decides to use the product on a many year of service from it. full, rather than a limited basis if unfavorable, the consumer decides to reject it.
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Importance of Information Sources Figure 14.8
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The Consumer Innovator The earliest purchasers of a new product Tend to have higher level of: Education Social interaction Opinion leadership Venturesomeness Social Status
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Discussion Questions Who do you know, personally, that you would consider an innovator? What is it about that person that makes them an innovator? What personality traits might they have which prompt their status?
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Cosmopolitan and Non Cosmopolitan Types - Figure 14.9
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The Consumer Innovator Interest in product category Opinion leader
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Discussion Questions Who are the most influential opinion leaders for college-aged people? Why are they influential?
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The Consumer Innovator Personality traits Perceived risk and venturesomeness Purchase and consumption characteristics Media habits
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The Consumer Innovator Social characteristics Demographic characteristics
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Comparative Profiles of the Consumer Innovator and Noninnovator - Table 14.5 (excerpt)CharacteristicSocial Characteristics Social integration Social striving Group memberships Demographic Characteristics Age Income Education Occupational status Younger Higher More Higher Older Lower Less LowerChapter Fourteen Slide 32
InnovatorMore More More
NoninnovatorLess Less Less
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Are There Generalized Consumer Innovators? Domain-specific vs. global innovativeness Technology and innovators
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