Diffusion of Innovations

The process by which

one person (the
opinion leader)
informally influences
Opinion
the consumption
Leadership
actions or attitudes of
others who may be
opinion seekers or
opinion recipients.
 The process by which
the acceptance of an
innovation is spread by
Diffusion
communication to
Process
members of social
system over a period of
time.
 The stages through
which an individual
consumer passes in
Adoption arriving at a decision to
Process try (or not to try), to
continue using (or
discontinue using) a new
product.
Elements of the Diffusion
Process

 The Innovation
 The Channels of Communication
 The Social System
 Time
Defining Innovations
 Firm-oriented definitions
 Product-oriented definitions
 Market-oriented definitions
 Consumer-oriented definitions
Product-Oriented
Definitions
Continuous
Innovation

Dynamically
Continuous
Innovation

Discontinuous
Innovation
 Telephone Innovations

Discontinuous Dynamically Continuous Continuous

Innovations Innovations Innovations
Telephone answering machines Hold button
Call forwarding Line-in-use indicator
Call waiting Redial button
Telephone Caller ID Auto dialing feature
Banking by telephone Touch-tone service
Call-prompting systems 800 Numbers
900 Numbers

Ability to send/receive email Switch from analog to

Incorporate PDA functions digital
Cell Phone Calendar/Phonebook Include camera
Voice-activated dialing Ringer styles
Play games
Fax modem Plain paper fax
Mobile fax machines Speed dial buttons
Fax Machine Home office systems Delayed send
(combined fax, copier, Copy function
computer printer) Paper cutter
Product Characteristics
That Influence Diffusion

 Relative Advantage
 Compatibility
 Complexity
 Trialability
 Observability
Characteristics That Influence Diffusion

CHARACTERISTICS EXAMPLES

Air travel over train travel, cordless

Relative
phones over corded telephones
Advantage

Gillette MACH3 over disposable

Compatibility razors, digital telephone answering
machines over machines using tape

Electric shavers, instant puddings

Complexity
 continued
CHARACTERISTICS EXAMPLES

Trial size jars and bottles of new

Trialability products, free trials of software,
free samples, cents-off coupons

Clothing, such as a new Tommy

Observability Hilfiger jacket, a car, wristwatches,
eyeglasses
Time and Diffusion
 Purchase Time
 Adopter Categories
 Rate of Adoption
 A sequence of
categories that
describes how early (or
Adopter
late) a consumer
Categories
adopts a new product
in relation to other
adopters.
 Adopter Categories

Early Laggards
Adopters
13.5% Early Late 16%
Majority Majority
Innovators 34%
34%
2.5%

Percentage of Adopters by Category Sequence

 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
 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS EXAMPLE
STAGE STAGE
Consumer is first Janet sees an ad for a new MP3 player in
Awareness exposed to the product the magazine she is reading.
innovation.
Consumer is interested in Janet reads about the MP3 player on the
the product and searches manufacturer’s Web site and then goes to
Interest
for additional an electronics store near her apartment and
information. has a salesperson show her a unit.
Consumer decides After talking to a knowledgeable friend,
whether or not to believe Janet decides that this MP3 player will
that this product or allow her to easily download the MP3 files
Evaluation
service will satisfy the that she has on her computer. She also
need--a kind of “mental feels that the unit’s size is small enough to
trial.” easily fit into her beltpack.
 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS EXAMPLE
STAGE STAGE
Consumer uses the Since an MP3 player cannot be “tried” like
product on a limited a small tube of toothpaste, Janet buys the
Trial basis MP3 player online from Amazon.com,
which offers a 30-day full refund policy.

If trial is favorable, Janet finds that the MP3 player is easy to

consumer decides to use use and that the sound quality is excellent.
the product on a full, She keeps the MP3 player.
Adoption rather than a limited
(Rejection) basis--if unfavorable, the
consumer decides to
reject it.
 An Enhanced Adoption Process Model

Discontinuation or
Rejection
Rejection

Evaluation

Pre-existing Adoption
problem or Awareness Interest Evaluation Trial or
Need Rejection

Adoption or Rejection
Postadoption or
Postpurchase
Evaluation
Discontinuation
The Relative Importance of Different Types of
Information Sources in the Adoption Process

High
Personal and
interpersonal
sources
Importance
Impersonal
mass-media
sources

Low Evaluation
Interest
Awareness

Trial

Adoption
Issues in Profiling
Consumer Innovators
 Defining the Consumer Innovator
 Interest in the Product Category
 The Innovator Is an Opinion Leader
 Personality Traits
 Media Habits
 Social Characteristics
 Demographic Characteristics
 Are There Generalized Consumer
Innovators?