Consumer Adoption Process.ppt Marketing ppt

Consumer Adoption Process

1. MARKETING –ll
CONSUMER ADOPTION PROCESS
&
DIFFUSION OF INNOVATION

2. CONSUMER ADOPTION PROCESS
The consumer adoption process, also known as
the consumer decision-making process, refers
to the series of steps or stages that individuals
go through before making a purchase or
adopting a new product, service, or idea.

3. IT HAS 5 STEPS
1.Awareness: This is the initial stage where consumer
becomes aware that a new product exists but is unsure about
its information. It could be triggered by internal factors (e.g.,
hunger, thirst) or external factors (e.g., advertisements,
recommendations).
2.Interest: After recognizing the need, consumers actively
seek out information about the product. This information can
be gathered from various sources such as friends and family,
advertisements, online reviews, and expert opinions.

4. 3. Evaluation of Alternatives: In this stage, consumers assess different
options available to fulfill their needs or solve their problem. They
compare features, benefits, prices, and other attributes of each
alternative to determine which one best meets their requirements.
4. Trial: Once consumers have evaluated their options, they make a
decision to purchase the product or service that they believe offers the
best value or solution. This decision can be influenced by factors such
as brand reputation, price, availability, and personal preferences.
5. Adoption: After making a purchase, consumers evaluate their
decision based on their experience with the product or service. If their
expectations are met or exceeded, it reinforces their decision and leads
to satisfaction. If not, it may result in dissatisfaction and opting out to buy
the product again.

6. EXAMPLES OF CONSUMER
ADOPTION PROCESS
Virtual Reality Gaming Experience:
•Problem Recognition: You attend a gaming convention where you experience a virtual
reality (VR) gaming demo. You're blown away by the immersive experience and realize
you want that level of gaming at home.
•Information Search: You spend hours researching different VR headsets, reading
reviews, and watching YouTube videos of gameplay experiences to find the best option.
•Evaluation of Alternatives: After narrowing down your choices, you visit a VR arcade
to try out different headsets and games firsthand before making a decision.
•Purchase Decision: You decide on a high-end VR headset with motion controllers and
purchase it online along with a bundle of popular VR games.
•Post-Purchase Evaluation: You invite friends over to try out your new VR setup, and
everyone is impressed by the immersive gaming experience. You feel satisfied with your
decision and start exploring more VR content.

7. 2
nd
EXAMPLE
Personalized Fitness App:
•Problem Recognition: You want to improve your fitness but struggle to stay motivated
with your current exercise routine. You realize you need personalized guidance and
accountability.
•Information Search: You come across advertisements for a fitness app that offers
personalized workout plans, nutrition tracking, and virtual coaching.
•Evaluation of Alternatives: You explore different fitness apps, comparing features like
workout variety, progress tracking, and community support.
•Purchase Decision: After reading positive reviews and testimonials, you download the
app and sign up for a subscription to access premium features.
•Post-Purchase Evaluation: You start using the app regularly, tracking your workouts
and following the personalized recommendations. You notice improvements in your
fitness level and feel motivated to continue using the app to reach your goals.

8. DIFFUSION OF INNOVATION
The diffusion of innovation theory, proposed by sociologist
Everett Rogers in 1962, explains how new ideas, products,
or innovations spread and are adopted by members of a
social system over time. The theory identifies five stages
through which innovation spreads:

9. THE 5 STAGES
1.Innovation: This is the stage where a new idea,
product, or practice is introduced. It could be a
technological invention, a new service, or a novel way
of doing things.
2.Early Adopters: These are the first individuals or
groups within a social system to adopt the innovation.
They are typically well-informed, risk-taking, and have
a high degree of social influence. Early adopters play
a crucial role in influencing others' perceptions and
decisions regarding the innovation.

10. Stages….
3.Early Majority: Following the early adopters, the early majority begins to adopt the
innovation. These individuals or groups are more cautious and deliberate in their
decision-making process. They observe the experiences of early adopters and may seek
additional information or reassurance before adopting the innovation themselves.
4.Late Majority: The late majority consists of individuals or groups who adopt the
innovation after the early majority. They tend to be more skeptical and resistant to
change, preferring to observe the experiences of others before committing to the
innovation.
5.Laggards: Laggards are the last to adopt the innovation, often due to factors such as
tradition, skepticism, or limited access to information. They may resist change even after
the majority of the social system has already adopted the innovation.

11. AS YOU CAN SEE…

12. <EXAMPLE>
Example: Adoption of Electric Vehicles (EVs)
1.Innovation Stage: The introduction of electric vehicles represents the innovation
stage. EVs are new, environmentally friendly vehicles powered by electric motors instead
of traditional internal combustion engines.
2.Early Adopters: Tech enthusiasts and environmentally conscious individuals are
among the early adopters of electric vehicles. They are attracted to the cutting-edge
technology, environmental benefits, and the opportunity to be early supporters of a
sustainable transportation solution. Early adopters purchase EVs and share their positive
experiences with friends, family, and online communities.
3.Early Majority: As electric vehicles become more mainstream and automakers
introduce a wider range of models with improved technology and affordability, the early
majority begins to adopt EVs. These individuals are influenced by the experiences and
recommendations of early adopters, as well as factors like lower operating costs,
government incentives, and increasing availability of charging infrastructure.

13. ……..
4.Late Majority: The late majority consists of individuals who were initially hesitant to
adopt electric vehicles but are now convinced by the growing acceptance and
normalization of EVs in society. They see EVs as a practical and viable option for
transportation, especially as concerns about climate change and air pollution become
more pressing. The late majority adopts EVs as they become more affordable, widely
available, and integrated into mainstream culture.
5.Laggards: Laggards are individuals who are resistant to change and prefer to stick
with traditional gasoline-powered vehicles. They may have concerns about range
anxiety, charging infrastructure, or the perceived inconvenience of owning an EV.
However, as EV technology continues to improve and become more ubiquitous, even
laggards may eventually adopt electric vehicles, albeit at a slower pace compared to
earlier adopter groups.