Factors affecting rate of Diffusion and

Consumer Adoption of newly launched products and services

The Consumer Adoption Process is the mental steps through which an individual passes from first hearing about an innovation to final adoption -

1.) Awareness – The Consumer becomes aware of the innovation but lacks information about it.

2.) Interest – The consumer is stimulated to seek information about the innovation.

3.) Evaluation – The consumer considers whether to try the innovation.

4.) Trial – The consumer tries the innovation to improve his or her estimate of its value.

5.) Adoption – The consumer decides to make full and regular use of the innovation.

Factors Influencing the Adoption Process• Readiness to TRY NEW PRODUCTS

Innovators are technology enthusiasts

Early adopters are opinion leaders who carefully search for new technologies

Early majority are deliberate pragmatists who adopt the new technology when its benefits are proven

Late majority are skeptical conservatives who are risks avers, technology shy, and price sensitive

Laggards are tradition-bound and resist the innovation until the status quo is no longer defensible

Personal Influence, the effect one person has on another’s attitude or purchase probability.

Recap :

• Consumer Adoption Process and mental steps• Factors Influencing the Adoption Process• Diffusion of Innovation• Readiness to try new products and personal

influence• Time of adoption of innovations• Characteristics of the innovation

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