Diffusion of innovation

Exploring acceptance of any new product or service

1. Diffusion of i nnovation By- Vijyata || assistant professor|| Ranchi Women’s college

2. Diffusion of innovation is an area of research which provides the framework for exploring consumer acceptance of any new product, idea or event. How any innovation gets accepted or rejected ??

3. Diffusion of innovation DIFFUSION PROCESS Diffusion is a macro process concerned with the spread of the new product (an innovation) from its source to the consuming public ADOPTION PROCESS Adoption is a micro process that focuses on the stages through which an individual consumer passes while deciding to accept or reject any new product.

4. The DIFFUSION PROCESS Diffusion is the process by which the acceptance of an innovation ( a new product, new service, new idea, or new practice) is spread by communication (mass media, salespeople, or informal conversation) to the members of the social system (a target market) over a period of time. Elements of diffusion process includes The innovation The channel of communication The social system Time

5. The innovation

6. Product characteristics that influence diffusion Relative Advantage Compatibility Complexity Trialability Observability The degree to which the potential customers perceive a new product as superior to the existing substitute . The degree to which the potential customers feels a new product is consistent with their present needs, values and practices The degree to which the new product is difficult to understand or use. The ease with which a product’ benefits can be observed ,imagined or described to the potential consumers The degree to which the new product is capable of being tried on a limited basis.

7. The channel of communication MARKETER CONSUMER CONSUMER CONSUMER Opinion Leaders Influencers Mass Media Internet

8. The social system A social system is the physical, social, cultural environment to which people belong and within which they function. Marketers must operate in this social system only to gain acceptance for their new product. - Market Segment - Target Market

9. time The amount of purchase time ( the amount of time that elapses between consumers’ initial awareness of the new product and the point at which they purchase or reject it.) The identification of adopter categories (classification of consumers relative to other consumers in terms of adoption time) The rate of adoption ( how long it takes it takes a new product to get accepted by those who will ultimately adopt it)

10. ADOPTER CATEGORIES

11. ADOPTER CATEGORIES Percentage of Adopters by Category Sequence Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Innovators 2.5 %

12. Awareness ( Consumer is first exposed to the innovation) Interest ( Consumer is interested in the product and searches for additional information) Evaluation ( Consumer decides whether or not to believe that this product will satisfy the need- a kind of mental trial) Trial (Consumer uses the product on a limited basis) Adoption/Rejection ( based on favorableness of trail, product gets adopted or rejected) Stages in adoption process

13. Stages in adoption process Pre-existing problem or Need Awareness Interest Evaluation Trial Adoption or Rejection Postadoption or Post purchase evaluation Discontinuation Adoption or Rejection Evaluation Rejection Discontinuation or Rejection

14. When perceived relative advantage, perceived compatibility , trialability and communicability are LOW When perceived complexity is HIGH Innovation Overload ( increase in information and options available to the consumer impairing decision making ) Resistance to innovation

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