ASSIGNMENT

Module Code 19MMT501A

Module Name Product and Brand Management
Programme MBA - Marketing
Department Management Studies
Faculty FMC

Name of the Student Nandini Saini

Reg. No 19MCMS047060

Batch 2019-2021

Module Leader Dr. G. Devakumar

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It is interesting how consumers learn about products for the first time and
decide whether to adopt them.

The adoption process for a new product is the mental process through which
an individual passes from first learning about an innovation to final adoption”
and adoption as the decision by an individual to become a regular user of the
product. A new product is a good, service, or idea perceived by some potential
customers as new.

Consumers go through 5 stages in the process of adopting a new product.

1. Product Awareness.
2. Product Interest.
3. Product Evaluation.
4. Product Trial.
5. Product Adoption.

These stages imply that the new-product marketer should consider how to
help consumers move through these stages. A manufacturer of large-screen
televisions may discover that many consumers in the interest stage do not
move to the trial stage because of uncertainty and the large investment.

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If these same consumers would be willing to use a large-screen television on a
trial basis for a small fee, the manufacturer should consider offering a trial-use
plan with the option to buy.

For adopting a new product, at first, the consumer becomes aware of the new
product but does not have information about it. The consumer shows interest
and searches for information about the new product. In the third stage, the
consumer evaluates whether trying the new product is worthwhile. After that,
the consumer tries the new product on a limited scale to improve his or her
assessment of its value. At the last stage, the consumer decides to make full
and regular use of the new product.

1. Product Awareness
The consumer becomes aware of the new product but lacks information
about it. Initially, the consumer must become aware of the new product.
Awareness leads to interest, and the customer seeks information about the
new product.

2. Product Interest
The consumer seeks information about the new product. Once the
information has been gathered, the consumer enters the evaluation stage
and considers buying the new product.

3. Product Evaluation
Next, in the trial stage, the consumer tries the product on a small scale to
improve their estimate of its value. The consumer considers whether trying
the new product makes sense.

4. Product Trial
The consumer tries the new product on a small scale to improve their
estimate of its value. If the consumer is satisfied with the product, they
enter the adoption stage, deciding to use the new product thoroughly and
regularly.

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5. Product Adoption
The consumer decides to make full and regular use of the new product. The
new product is a good, service, or idea perceived by some potential
customers as new.

How to Make Potential Consumers to Adopt the New Product

Its characteristics influence the rate of adoption of a new product. Some

products gain quick acceptance, while others may take a long time.
Five characteristics play an important role in affecting the rate of adoption of
an innovation. These are:

1. Relative Advantage – the degree to which the innovation seems to be

superior to existing products.
2. Compatibility – the degree to which the innovation conforms to the values
and experiences of potential consumers.
3. Complexity – the degree to which the innovation is difficult to recognize or
use.
4. Divisibility – the degree to which the innovation may be tried on a small
scale basis.
5. Communicability – the degree to which the results of using the innovation
can be observed or communicated to others.

In addition to the above five characteristics, some other characteristics may

also affect the rate of adoption - initial and ongoing costs, risk and uncertainty,
and social approval. In designing the new product and its marketing program,
the new-product marketer has to study all these factors.

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