What is Innovativeness?
It is “any idea or product perceived by potential adopters to be new”, regardless of the time it has been in the marketplace.
Who buys new products?
Diffusion of Innovations
This topic investigates key issues concerning with how various innovations get diffused in the market-place after their initial launch. Objectives: 1. To study theories about diffusion 2. To look at consumer segments which facilitate the diffusion processes.
AIDA model Attention Interest Desire Affective Cognitive
Hierarchy of Effects Awareness Liking Preference Conviction
Action
Conative
Purchase
WHO BUYS NEW PRODUCTS?
Observability:- Is concerned with the degree to which an
innovation can be seen by friends and neighbours. The higher the visibility the more likely it will be for an innovation to diffuse.
SELF- TEST QUESTIONS? What is Innovation? What are the main elements of Innovation? What characteristics are required to assist diffusion? What are the theories that explain the communication process?
Compatibility:- How compatible (consistent) an
innovation is with existing experience of potential adopters?
Complexity:- Degree to which an innovation is perceived to be
Discontinuous Products A Garlic salad dressing Instant - decaffeinated coffee Low calorie sugar free snack Established Counterparts Salad cream (same brand name) Instant coffee (same brand name) Traditional snack biscuits.
Rogers suggests the following: The photocopy displayed provides some generalisation about characteristics of adopter categories. For instance the evidence indicates that Innovativeness is strongly related to Education, Ability to cope with uncertainties and change.
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13.5
34
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16
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
PRODUCT LIFE CYCLE Growth
IntroIntroduction
Growth
Maturity
Decline
TIME
PLC and Consumer segments Overlap
Dynamically Continuous Mixed sherry Reduced fat sausages Reduced fat cheddar cheese Fibre rich cereal Savory wheat crackers
Cream sherry (same brand) Traditional pork sausages Traditional cheddar cheese Cornflakes (same brand)) Cream crackers (same brand)
Dynamically Continuous:- Either a creation of a new product
or an alteration of an existing one. These innovations have some disruptive influence on consumption behavior, but do not change the established behavior.
Discontinuous Innovation:- These innovations are radically
new. They have a considerable disruptive impact on consumption behavior. Continued
Innovations
Multi-phasic model:
Several researchers have challenged the two step flow of information and put forward an alternative theory. This theory emphasises that the audience are not passive but actively seek information regarding products. Sources that they may consult are: Mass-media i.e. television, magazines Word -of- mouth i.e. friends, neighbors Neutral sources i.e. consumer reports. .
easy or complex to use and understand. The more complex the innovation the less likely it is to succeed.
Triability:- An innovation is more likely to succeed if potential
What is an innovation? A totally new concept Copied products Modifications
Consumer Resistance to change
Functional Barriers 功能
心理 Psychological Barriers
Usage
Value
Risk
Tradition
Image
Robertson (1967) provides three categories of Innovation: Continuous Innovation:- These innovations are a modification
of present products and are the least disruptive in their impact on consumption behavior.
adopters can try it out first. For instance, a new shampoo could be packed in miniature bottles and given out as shampoo which would allow consumers to form an opinion about it before a purchase made.
Continuous Innovations
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Communication process:
Information regarding a new product is communicated within a given social system as follows:
The two-step flow model:
This theory postulates that effects of mass-media are not directly received by majority of people instead are picked by a small number of people who in turn disseminate information to others in a society (labeled as opinion leaders).