Download - L 2A Diffusion of Innovation

Theory of Cognative Dissonance

Cognitive dissonance is a discomfort caused by holding conflicting cognitions (e.g., ideas,beliefs, values, emotional reactions) simultaneously.

In a state of dissonance, people may feel surprise, dread, guilt, anger, or embarrassment

A classical illustration of cognitive dissonance is expressed in the fable The Fox and the Grapes

This example follows a pattern: one desires something, finds it unattainable, and reduces one's dissonance by criticizing it. Jon Elster calls this pattern "adaptive preference formation"

Copyright © 2006 Pearson Education Canada Inc.13-1

Copyright © 2006Pearson Education Canada Inc.

Consumer Influence and the Diffusion of Innovations


Opinion Leadership

The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients


What is Opinion Leadership?

Opinion Leader

Opinion Receiver

Opinion Seeker


Purchase Pals and Surrogate Buyers

Purchase Pals– Information sources who accompany a

consumer on a shopping trip

Surrogate Buyers– Professional buyers who help consumers with

their purchases


(continued)


Figure 13-1 (continued)


Market MavenMarket Maven

Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.


Motivations Behind Opinion Leadership

The Needs of Opinion Leaders– To reduce their own post-purchase dissonance– For tangential personal benefits– Because of high levels of product involvement– Because of message involvement

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Motivations Behind Opinion Leadership

Motivations of Opinion Seekers– To obtain new product or new usage

information– To reduce their risk by getting knowledge – To reduce search time– To receive the approval of the opinion leader


Reasons for the Effectiveness of Opinion Leadership

Credibility Positive and Negative Product Information Information and Advice Opinion Leadership Is Category-Specific Opinion Leadership Is a Two-way Street


The Interpersonal Flow of Communication

Two-Step Flow– A communication model that portrays opinion

leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.

Multi-step Flow– A revision of the traditional two-step theory

that shows multiple communication flows


Opinion Leadership and Marketing Strategy

Identify and provide samples to opinion leaders

Design programs to stimulate opinion leadership

Develop ads simulating opinion leadership Create opinion leaders Control negative word-of-mouth

communication


Diffusion ProcessDiffusion 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 ProcessAdoption 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


Factors That Affect the Diffusion of Innovations

The Innovation The Channels of Communication The Social System Time


Product Characteristics That Influence Diffusion

Relative Advantage Compatibility Complexity Trialability Observability Felt Need Risk


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 CategoriesAdopter Categories

A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.


Innovators: Description

• 2.5% of population• Venturesome• Very eager to try new ideas• Acceptable if risk is daring• More cosmopolite social relationships• Communicates with other innovators


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


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


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?


Diffusion Process and Marketing Strategy

Identify diffusion inhibitors and find ways to compensate for these

Identify innovators and early adopters and cater to them

Move consumers from awareness to adoption

Make effective use of word-of-mouth communications