ADOPTION OF TECHNOLOGICAL INNOVATIONS Adoption of technological innovations is the process consumers use to determine whether or not to adopt an innovation.

DIFFUSION
Diffusion is the process by which a new idea or new technology is accepted by the market. The rate of diffusion is the speed that the new idea spreads from one consumer to the next. Adoption is similar to diffusion except that it deals with the psychological processes an individual goes through, rather than an aggregate market process.

Rates of adoption
The rate of adoption is defined as the relative speed with which members of a system adopt an innovation. It is usually measured by the length of time required for a certain percentage of the members of a social system to adopt an innovation. The rates of adoption for innovations are determined by an individuals adopter category. In general, individuals who first adopt an innovation require a shorter adoption period (adoption process) than late adopters.

CATEGORIES OF ADOPTION

1. Innovator who make up 2.5% of all purchases of the product, purchase the product at the beginning of the life cycle. They are not afraid of trying new products that suit their lifestyle and will also pay a premium for that benefit. Technology enthusiasts Take on new technologies and trial them Glory for being first, a thought and practice leader.. Will have learned from their mistakes, and have far more experience than any others desires the hazardous, the rash, the daring, and the risky. 2. Early Adopters make up 13.5% of purchases, they are usually opinion leaders and naturally adopt products after the innovators. This group of purchasers are crucial because adoption by them means the product becomes acceptable, spurring on later purchasers. Visionaries more integrated part of the local social system than are innovators younger, more educated, tended to be community leaders considered by many as the "individual to check with" before using a new idea decrease uncertainty about a new idea by adopting it

3. Early Majority make up 34% of purchases and have been spurred on by the early adopters. They wait to see if the product will be adopted by society and will purchase only when this has happened. The early majority usually have some status in society. Pragmatists more conservative but open to new ideas, active in community and influence to neighbors this group gets to help define mainstream adoption Ill buy this thing when its done, but not before.

4. Late Majority make up another 34% of sales and usually purchase the product at the late stages of majority within the life cycle. Conservatives older, less educated, fairly conservative and less socially active Reduced risk from learning from whos done it right and wrong, as well as benefits from standard processes, and consolidation of vendors. Switch only when technology fully debugged

5. Laggards make up 16% of total sales and usually purchase the product near the end of its life. They are the wait and see group. They wait to see if the product will get cheaper. Usually when they purchase the product a new version is already on the market. Some may call Laggards, bargain hunters! Skeptics very conservative, had small farms and capital, oldest and least educated Still cautions in deployment, even after the technology has become mainstream Refuse to adopt

FIVE STAGES OF THE ADOPTION/DIFFUSION PROCESS

Knowledge Persuation Decision Implementation Confirmation

Knowledge In this stage the individual is first exposed to an innovation but lacks information about the innovation. During this stage of the process the individual has not been inspired to find more information about the innovation. Persuasion In this stage the individual is interested in the innovation and actively seeks information/detail about the innovation. Decision In this stage the individual takes the concept of the change and weighs the advantages/disadvantages of using the innovation and decides whether to adopt or reject the innovation. Due to the individualistic nature of this stage Rogers notes that it is the most difficult stage to acquire empirical evidence. Implementation

In this stage the individual employs the innovation to a varying degree depending on the situation. During this stage the individual determines the usefulness of the innovation and may search for further information about it. Confirmation Although the name of this stage may be misleading, in this stage the individual finalizes his/her decision to continue using the innovation and may use the innovation to its fullest potential.

DAYAL BAGH EDUCATIONAL INSTITUTE

TECHNOLOGICAL ADOPTION AND TECHNOLOGICAL DIFFUSION PROCESS

BBM-506

SUBMITTED TO Dept. of Management D.E.I.

SUBMITTED BY Hazur Saran BBM 5th Sem. 097515