Diffusion of innovation :

Diffusion of innovation is the process by which the adoption of an innovation spreads over a

period of time to other consumers through communication.

The study of diffusion of innovation explains how new ideas, practices, products, and services

spread within and between communities and the social system through interpersonal

communication.

Learn about:- 1. Meaning of Diffusion of Innovation 2. Characteristics that Influence the

Diffusion Process 3. Consumer goes through 5 Stages in the Process of Adopting New Products

(With Limitations and Examples) 4. Multiplicative Innovation Adoption (MIA) Model 5.

Elements 6. Classification of 5 Adopter Categories Identified by Everett Rogers 7. Barriers.

Diffusion of Innovation: Meaning, Stages, Elements, Examples, Model, Barriers,

Characteristics and More….
Diffusion of Innovation Meaning

Diffusion of innovation is the process by which the adoption of an innovation spreads over a

period of time to other consumers through communication

Group communication are an important (or primary) source of information and can influence the

consumer decision making. Group communication can occur within or across groups.

Communication within groups refer to word-of mouth influence which is considered to be highly

credible since it comes through family, friends, peers and neighbours.

The process of diffusion will occur for new products as informational influence and is likely to

affect the adoption of new products across groups. Consumer researchers trying to explore the

area of consumer acceptance of new products are primarily interested in understanding two

closely related processes.

1. The diffusion process.

2. The adoption process.

The diffusion process is a macro process related to the spread of a new innovation from its

source (or manufacturer) to the final consumers. Whereas, adoption is a micro process focusing

on the stages through which an individual passes when deciding to accept or reject a new

innovation Over and above these two interrelated processes, marketers are also interested in

identifying the “Consumer innovators “, those who are first to purchase a new product for it is

felt that this group will play a major role in the success or failure of the innovation.

A consumer is likely to find a new idea, or product or even a new service attractive. But the

organisation which is trying its hand at the new innovation is likely to be concerned about how

fast the diffusion of the innovation is likely to take place. Even though, it is only after an

intensive research that a new concept or product is launched, there is always an element of risk

involved. Through research, answers to certain questions are sought.

1. Does the innovation cater to the need of the target customer?

2. Have the target consumer understood how the innovation is relevant to their need?

3. Is the new product available and being demonstrated widely?

4. Has the firm identified the opinion leaders? If yes, is the firm making efforts to convert

opinion leaders into committed customers?

5. Is the company providing suitable incentives to sceptics to get them converted to adopters?

These questions are pertaining to certain broad areas which can be of concern to marketers

launching new products. One way of educating customers about new innovations will be by

communicating the benefits the new innovations would provide. Thus diffusion of innovation is

a challenge before the marketer to identify the ‘value added benefits’ which can be associated

with the product and communicate it to the consumer.

There are two issues that a marketer needs to address while launching new goods and services –

one, whether the modified/new good and service offering would be accepted by the segment(s),

and two, how quickly would the good and service offering be accepted by the segment(s). The

two issues are dealt with within the purview of ‘diffusion of innovation’.
‘Diffusion’ is regarded as a macro-process that deals with the adoption and spread of a new

product or service offering amongst the potential market. It relates to the acceptance/rejection of

an innovation by the segment(s). ‘Adoption’, on the other hand, is a micro-concept that lays

emphasis on the various phases or stages through which an individual consumer goes through

while accepting/ rejecting a new product offering.

While diffusion is a group phenomenon, which explains how a new product or service is spread

in the marketplace, adoption is an individual process, which explains the stages one goes through

from first hearing about the innovation to finally adopting it.

The word ‘diffusion’ has its origin in the Latin word ‘diffundere’, which means ‘to spread’. The

study of diffusion of innovation explains how new ideas, practices, products, and services spread

within and between communities and the social system through interpersonal communication.

Studies on diffusion of innovation draw heavily from psychology and rural sociology.

Top 5 Characteristics that Influence the Diffusion Process (With Examples)

All new products or innovations are not always easily accepted by consumers. Some products

gain easy acceptance or are easily accepted by consumers. For instance, Nirma detergent powder

(when HLVs Surf was the market leader), Maruti 800 c.c. car etc. While there are other new

products or ideas which took a long time to be accepted.

For example, ownership of a personal credit card. There are still others which inspite of being

available in the market since quite some time, (the new product) had never gained wide spread

consumer acceptance as anticipated by the marketers.

The uncertainties associated with product marketing can be greatly reduced if marketers could

anticipate how consumers would react to new products and develop a promotional strategy

accordingly. The characteristics of the new product or innovation also affects its rate of adoption

or the adoption process.

Five characteristics have been identified which play an important role in influencing the

diffusion process:
Characteristic # 1. Relative Advantage:

The first characteristic is the new product’s relative advantage i.e., the degree to which it appears

to be better and superior than the existing products. If the consumer perceives, the new product

to be relatively superior as compared to the existing products, more is the chance of the

innovation being adopted. For example, ‘E-mail’ and Fax were considered to be better and

superior to Telex.

Similarly, cellular phones over took pagers, because they were accepted to have better

communicative features in comparison. This perception of greater relative advantage in using ‘E-

mail’ as well as cellular phones as communication network, resulted in sooner acceptance of this

concept or new idea.

Characteristic # 2. Compatibility:

The degree to which potential consumers feel that the new product is consistent with their

existing needs, values and practices is a measure of its compatibility. Greater the degree of

compatibility, sooner will the innovation be acceptable to the consumer. For example, ‘Laptop’

computers are highly compatible with the needs and lifestyle of senior executives of companies.
Characteristic # 3. Complexity:
 Stages involved in the Process of Adopting New Products (With Limitations and
Examples)

Marketers are interested in knowing how consumers learn about new products and the decision

making process involved in adopting them. Adoption process may be defined as the mental

process through which an individual passes from first hearing about an innovation to final

adoption. So adoption can be said to be the decision by an individual to become a regular user of

the product.

When marketers introduce a new product or a new innovation to its target market, a lot of

planning goes into managing the resistance to adopt the new innovation. This is because it
involves bringing about a change in buyer’s attitude and perception. Generally it is assumed that

the consumer goes through five stages in the process of adopting new products.

1. Awareness Stage:

In this stage an individual comes to know about a new innovation or new idea or new

product/service. He becomes aware of the innovation from any source of information such as

from friends, neighbour, co-workers, commercial sources etc.

The individual only learns about the new innovation from either of the sources of information

mentioned above. This means his knowledge about the new innovation is only limited to the

extent of the information generated by the source of information from where he first learns about

the new innovation.

2. Interest Stage:

After being aware of the new product or innovation, in this stage, the consumer gets stimulated

and interested in the innovation. He goes about seeking more information about the new product.

He is interested in gathering more detailed information related to the innovation in terms of its

utility aspects, performance, durability and so on.

3. Evaluation Stage:

The consumer ‘interested’ in the innovation will seek more information on it from all the sources

he finds reliable. After collecting all the information on the innovation, the consumer will

mentally try to evaluate the worthiness of the innovation. He will assign weights to the product

attributes and work out to what extent the new product will be useful to him and then decide on

whether or not to buy the new product.

4. Trial Stage:

After evaluating the worthiness of the new product, the consumer may decide to try out the

innovation on a small scale basis initially and make an actual assessment of the value of the new

product. This stage also indicates that now the consumer is mentally prepared to try out the

innovation, though initially on a small scale.

He/she wants to experiment with the innovation and depending on how comfortable they are

with the product, they will decide whether or not new product or innovation, it looks more

logical and practical to go for a sample trial before opting for full time usage.

5. Adoption Stage:

On being satisfied with the use of the new product, purchased by him on a trial basis, the

consumer now decides to make full and regular use of the innovation. This is the last stage in the

adoption process. The consumer takes the decision to go for a full-fledged and continuous use of

the new product or innovation.

The marketer must think of ways to help or facilitate easy movement of consumers through all

these stages. Understanding how a consumer seeks and processes information about new

products and the decision making process can help marketers to devise suitable ways which will

help in the early adoption of the new products.

When the Future group’s Managing Director, Kishore Biyani started Top 10, a store that targets

fashion for the college campus, tee-shirts, jeans, accessories and so on and also ranks the top 10

selling items in the store, the store was not able to attract consumers. A study carried out

revealed that teenagers always came accompanied by their parents and this meant they wouldn’t

buy what they wanted.

So a decision was taken to change the format around. Accordingly clothes were put in bins, on

hangers, painted graffiti on the walls — all to make the store look like a really large teenagers

room. This decision in fact induced interest, evaluation and trial among the target audience.

Thereafter, the shop was full of college-going kids and parents were absolutely not welcome.

Although the above mentioned traditional adoption process model is very simple to understand,

it has got certain limitations.

1. This process has not taken into consideration the fact that there is a need or problem

recognition stage confronting a consumer before he becomes aware of the various options or

solutions.
2. The model does not consider that there is a possibility of the consumer rejecting the product

after trial or that he may not use the product on a continuous basis.

3. Another fact which is not adequately recognised is that usually the evaluation takes place

through-out the decision making process and not necessarily at the evaluation stage only.

4. The model does not include the post purchase evaluation behaviour, which may either lead to

a firm commitment or a decision to discontinue usage of the product.

In view of the above cited limitations, consumer researchers have suggested including two more

stages between the trial and adoption stages, direct product experience (consequences) and

product evaluation (confirmation) stages. The proposed modification to the adoption process is

given here under.

It is seen that the adoption process starts with- Stage 1 → awareness, which leads to stage 2 →

interest and then to stage 3 → evaluation. After this stage the product can either be rejected or

tried out (stage 4) either before or after purchase. The trial stage may lead to stage 5 → direct

product experience and the consequences of the experience stage 6 → product evaluation, this

will ultimately result in either rejection or adoption (stage 7) of the product.

Examples of adopting innovations which were directly visible in the changes in behavioural

pattern and lifestyle of consumers are automobiles, air conditioners, microwave oven and PC

(Personal computer).
Multiplicative Innovation Adoption (MIA) Model (With Evaluation)

Rosemary Phipps and Craig Simmons had proposed a model of innovation adoption process,

which is based on the Roger Shoemaker Criteria. Their idea was to understand what makes an

innovative product, service or idea successful.

To assess an innovation using the MIA model, it will be necessary to rate the innovation

(product, service or idea) on the Rogers and Shoemaker criteria.

This is done by using the following scheme:

1. Relative advantage- The rating under this is referred to as RA. If the relative advantage is

high, the innovation is rated 3, if it is medium, it is rated ‘2’ and if it is low then ‘1’.
2. Compatibility- This is referred to as ‘CT’ rating. If the compatibility is high, a rating of ‘3’ is

given, if it is medium, a rating of ‘2’ is given and ‘1’ if it is low.

3. Complex- This is referred to as ‘CL’ rating. The rate of innovation is ‘3’ if it is simple, ‘2’ if it

is medium (complexity) and ‘1’ if it is judged to be highly complex.

4. Facilitates Trial- This rating is referred to as TR. If the opportunity to offer trial is high the

rate of innovation is ‘3’, ‘2’ if it is judged to be medium and ‘ 1’ if it is low.

5. Observability- This rating is called ‘OB’. If the observability is high, the innovation is rated

‘3’ if it is judged to be medium it is ‘2’ and ‘ 1’ if it is low.

Under the MIA model, it is assumed that each of the criterion makes an equal contribution to the

success or otherwise, of the innovation. Another assumption is that they combine in such a way

that if there were positive ratings on more than one criterion this will have a multiplicative effect

on the success of the innovations. In the following Table 11.3 a hypothetical rating of several

innovations on the above mentioned criteria is given.

4 Basic Elements of the Diffusion Process of Innovation

Rogers (1962) defined diffusion as ‘the process in which an innovation is communicated through

certain channels over time amongst the members of a social system’. He defined diffusion of

innovation process as ‘the spread of a new idea from its source of invention or creation to its

ultimate users or adopters’. According to him, diffusion of innovation comprises four main

elements, namely innovation, communication channels, time, and social system.

The definition comprises four basic elements of the diffusion process:

1. Innovation:

The term ‘innovation’ refers to the newness of the good or service offering. Rogers has defined

an innovation as ‘an idea, practice, or object that is perceived as new by an individual or other

unit of adoption’.

2. Channels of Communication:
Channels of communication refer to means that helps transmit information about an innovation

from the marketers to the people in the social system as well as from one individual to another.

They include both marketing communication and interpersonal communication through word of

mouth (WOM). Marketing communication takes place between the marketer and the potential

market, or the target segment(s).

It could be personal (e.g., between the salesperson and the consumer) or impersonal (via print or

audio-visual media). Interpersonal communication takes place between the consumers or

between the members of the target segment(s). It could be WOM communication between

consumers or through an opinion leader. The quicker people come to know about an innovation

through the mass media, Internet, and WOM, both online and offline, the faster it would get

diffused.

Mass media channels are regarded as cosmopolites while interpersonal channels in the form of

WOM communication are more localite. Diffusion of innovation depends a great deal on

communication between the marketer and the prospect, as well as communication amongst

prospects or between prospects and consumers. With advancement in technology and the

Internet, people are exposed to newer goods and services not only within their own country but

also across the globe. Consumers are more aware and informed today, and diffusion of

innovation is faster.

3. Social System:

The social system refers to the social setting in which the diffusion takes place. Diffusion always

takes place within a social system, similar to what happened with the farmer community in case

of the famous hybrid corn study. The social structure, prevalent values, and norms, as well as the

opinion leaders, influence the acceptance or rejection of innovation and affect the speed with

which the diffusion will take place.

For majority of the members of a social system (target market), the decision to adopt an

innovation depends on other members of the social system. In a way, it reflects the target

market(s) for which the good and service is designed, and within what segment(s) it would be

diffused. For example, for a new herbal anti-wrinkle cream, the social system would be confined

to ladies who are in their mid-40s and above.

Social influence is a significant factor that influences people’s decisions to accept or reject new

ideas, products, and services. Within a social system, people may possess positive or negative

feelings towards an innovation and may decide to entirely accept or reject it. The social structure

can be assessed in terms of homophile and heterophile. The more homophilous people in a group

are, the stronger will be the ties, the more will be the likelihood of transfer of ideas and

information between them, and the stronger will be the influence.

Further, when social systems are modern and people are up to date, diffusion is much faster

compared to a situation where social systems are traditional and conservative. Modern social

systems are those where people are aware and educated, and are open to change. In addition,

adoption of an innovation can happen anywhere on the social scale, and may manifest as a

trickle- down effect, and trickle-up and trickle-across innovations.

Opinion leaders are important when it comes to diffusion of innovation. The importance of

opinion leaders was proposed by Paul Lazarsfeld and his team in the 1940s and later by Katz and

Lazarsfeld in the 1950s. They proposed the concept of opinion leaders and opinion followers and

how the media influenced both the leaders and the followers. Rogers (1983) defines opinion

leaders as ‘those from whom others seek advice and information’.

Rogers (1983) defines opinion leadership as the ‘degree to which an individual is able to

influence other individuals’ attitudes or overt behaviour informally in a desired way with relative
frequency’. Rogers proposed that diffusion of innovation would be much faster if opinion leaders

accepted it, and shared information and advice about it.

With the advancement of technology, there has been a growth in electronic social networks.

Today, reviews, chats, and blogs also play an important role in the diffusion of innovation.

Marketers resort to E-WOM and encourage communication with and between current and

prospective customers via social media, often motivating their customers to spread the word. The

company’s online social network page is also used as a platform.

4. Time:

Time is an important factor in the diffusion of innovation, as it determines the pace of adoption

and the resultant assimilation of the innovative offering. It specifies how long it would take for

people to adopt a new good or service. Researchers have studied the impact of time in three

ways, namely amount of purchase time, rate of adoption, and identification of adopter categories.

The amount of purchase time refers to the average time that a consumer takes to adopt a new

good and service offering. This would include the total time between the consumers’ initial

awareness and the final acceptance/ rejection of the new product or service. When the average

purchase time is less, it can be assumed that the rate of diffusion will be faster.

The rate of adoption is a measure of how long it takes a new product or service offering to be

adopted by the members of the target market. Rogers (2003) defines the rate of adoption as the

relative speed with which an innovation is adopted by members of a social system’. The rate of

adoption is ‘relative’ in the sense that people differ in the speed with which they adopt an

innovation, and one adopter category is quicker than another.

The rate of adoption depends on the traits and characteristics of people, in terms of their

receptivity to new things, as well as characteristics of the innovation itself, which draw people

towards it or against it. Some product categories get adopted instantly while some take a longer
period of time. In any case, initially, the rate of adoption of innovations is slow and gradual.

With greater awareness about the good and service category, through marketing communication

and interpersonal communication, the rate of adoption increases.

People differ with respect to their readiness to try and adopt new goods and service offerings.

Based on the length of time required for a certain percentage of the people in the target market,

the adopters are classified into adopter categories. Ryan and Gross (1943) were the first to

propose the adopter categories, which were later elaborated upon by Everett Rogers.

People in a population while adopting an innovation are normally distributed over time, as a bell-

shaped curve. The curve represents the frequency of consumers adopting a product over a period

of time. Initially, innovations are slowly adopted, then they experience a period of rapid

adoption, and thereafter they gradually level off. Further, the cumulative number of adopters in a

population when plotted on a curve, results in an S-shaped curve (i.e., adoptions across customer

segments).

These five adopter categories are:

i. Innovators,

ii. Early adopters,

iii. Early majority,

iv. Late majority, and

v. Laggards.

i. Innovators (Venturesome):

Innovators are those consumers who are the first to go and purchase a new good or service

offering, and they comprise 2.5 per cent of the target market(s) adopters. They are the first ones
to buy, not because they possess a need or want, but because they desire new ideas and concepts,

and so seek product and service innovations.

They are eager and enthusiastic by nature, and continually willing to try new things, irrespective

of price. They buy innovative products because these products are new and different. As the term

implies, innovators have the greatest degree of innovativeness and are the first to own and adopt

new products.

Innovators are younger by age, sound on financial resources, and higher in social status. They are
generally high on awareness, knowledge, and literacy levels. They are well informed, have

access to credible sources of information about innovative offerings, and are quick to purchase

them; there are two reasons for their purchase – one, because they have the interest and

inclination to buy the ‘new’, and two, because they have the purchasing power and the access.

Innovators are cosmopolitan, social, and gregarious by nature. They are extroverts and share

information with social networks that stretch beyond geographic boundaries.

Innovators are venturesome and adventurous, open minded, and less dogmatic. They are novelty

seekers and desire new ideas and concepts; hence, they seek product and service innovations.

They are high on need for uniqueness and desire higher OSLs. Further, they are low on brand

loyalty and are always on the lookout for new products. Because they are financially well off,

they have high tolerance for risk and ambiguity and are ready to take risks with respect to buying

out the ‘new’.

Innovators are also high on self-confidence, and are always eager to try out new goods and

services. They are inner directed and rely on their own values and judgement. They seek

information from a variety of mass media sources. Their media habits include reading special-

interest magazines, watching special-interest programmes on TV, and accessing specific

websites related to the product category, and they are variety novelty seekers.
It is important to mention here that innovators are not ‘generic’. They are in most cases ‘specific’

to a good and service type, and are heavy users of the good and service category in which they

innovate.

Innovators buy things because they are new and they want to be amongst the first to try new

things irrespective of the uncertainty and the consequences. Further, while they are the first to

buy and try new things, innovators are not as influential as the next adopter category, that is, the

early adopters, who are second amongst the category of adopters.

Early adopters contribute a lot to WOM communication and are better skilled to convince others

to try and buy new things. Nonetheless, innovators play an important role as they introduce into

the social system anew idea, product, or practice. In this way, they play the role of gate keepers

and help new ideas and products flow into a social system.

ii. Early Adopters (Respectable):

The next 13.5 per cent of the target market(s) adopters are called early adopters. Early adopters

are also enthusiastic about trying and using new goods and services, but they are pragmatic and

rational. They look at pros and cons, and then rationalize their decision-making. They buy the

‘new’ because they feel that it is better and offers more value. They are more confident about

their purchases. Early adopters adopt the innovation just before the average member of a social

system.

Early adopters buy the ‘new’ good and service offering not because they are fascinated by the

‘new’, but because they possess a need and want. They are quick to understand the value of

innovation, in terms of the need benefits, and are concerned with both the usability and

sociability.

Like innovators, early adopters are younger by age, with high social status, high knowledge, and

literacy levels. They are less prosperous than innovators, but more than the early majority. Early
adopters are more socially directed and rely on group’s values and norms. They are well

integrated and enjoy an important position in their social contagion.

They are social and gregarious, popular amongst their social circle, and act as community

leaders. They are more localite, but cosmopolite as well, in contrast to innovators who are

cosmopolitan. They are also trendsetters and like to share their experiences with the early

majority.

Early adopters are enthusiastic about an innovation but are more cautious about their decisions.
They generally tend to have some idea about the good/service category, and after gathering some

more information about the product and or brand, they go in for purchase. They are information

gatherers, seek novelty even if it means (taking risk), and have a desire for social prestige and

status. Early adopters also have their own media preferences, that is, print or broadcast. Like

innovators they are heavy users of product category.

Known as the lighthouse customers, early adopters play an active role in WOM and influence

other potential consumers. They occupy the position of centrality in the social network. They

have the highest degree of opinion leadership amongst all adopter categories. People approach

them for advice, and the very fact that they have adopted the innovation reduces the feeling of

uncertainty and risk in others. They provide information and convince others to buy.

Early adopters are also more careful in their choice of adoption, so that they retain the trust of

others and remain well respected. They believe that by being rational and buying the right

product, they would be able to enhance their social standing and maintain and/r enhance their

position in the social communication network. Because early adopters act as opinion leaders,

they are often targeted by marketers.

iii. Early Majority (Deliberate):

The next in line to adopt an innovation (after innovators and early adopters) are the early

majority. The early majority makes up the next 34 per cent of the adopters, and adds towards

bringing profits to the company. The early majority are similar to the early adopters in the sense

that they buy the good or service offering because they possess a need and want and desire to

satisfy it. They look for benefits in an innovation and want to see how a new product can help

them, and so they are highly pragmatic. However, they are not as fast as the early adopters, and

take longer to enter into purchase.

This is because unlike the earlier two categories, the early majority does not have much interest

in the product category. In addition, they perceive some risk with the ‘new’, and it is only after

some people have bought and used the new product and they have heard reviews or watched

experiences of the innovators and early majority that they decide to buy. They adopt a new

product only when they are confident that it would be useful to them, and help them satisfy a

need and want. The early majority buy an innovative good or service just when an average

person in the social system buys.

Consumers who fall into this category are above average in age and education and with medium

socio-economic status. They are careful and cautious about their purchases, and buy a new

product after careful investigation. They are conservative by nature and careful about accepting

any kind of change.

The early majority seeks information from their neighbours and people within their social

network and deliberates a lot before adopting a new good or service. They rely on information on

advertisements and sales people but do not get swayed away by the marketer’s claims. In other

words, while they are open to change, they rely on suggestions, recommendations, and approval

of others, who have already bought and used the new product.
They wait for reviews of product experiences of others, and will buy a new product only after

receiving opinions and feedback from others, particularly early adopters. Because they collect

information, evaluate it, deliberate carefully, and then take a decision, the adoption process takes

longer. Early majority adopt the innovative good or service just before the average time.

Early majority are highly local, who integrate with people in their own community, and the

opinions of others matter to them. However, while they interact with others, they do not hold

opinion leadership position.

iv. Late Majority (Sceptical):

The next in line to adopt an innovation (after innovators, early adopters, and late adopters) are

the late majority. The late majority constitute the next 34 per cent of the adopters. They are

referred to as ‘late’ because of two reasons; first, members of their peer group, social class, and

reference group have already made the purchase, and the social influence is strong; second, they

themselves have evaluated the new good and/or service and are ready to buy it.

The late majority take time to think and evaluate the new product, and it is much later that they

decide to buy. They buy a new good and service just after an average person in the social system

has done it.

The late majority are older in age, less educated, and lower in socio-economic status than the

first three adopter categories. They generally belong to the middle class and have a limited

disposable income. They are price sensitive and wait for prices to fall, so that they can afford it.

They also like to bargain and negotiate.

The late majority are traditional and conservative, very cautious, and risk-averse by nature. They

are sceptical of new goods and services, and look for strong customer support. They have a need

and want, and it is only after careful thought and deliberation, as well as with social influence
and pressure, that the ‘late majority’ make the purchase. Even if they know that the innovation is

useful, they would not buy it, and postpone the purchase to as late as possible.

However, when they buy, it is because of both social and peer pressure (to conform and comply),

as well as the necessity (due to decreased or non-availability of previously used goods and

services). This is mostly after most people in the social system have done so. The late majority

adopts the new good or service category after the average time, and after the majority of people

have bought and used it.

Because late majority are risk-averse and cautious by nature, they depend on strong interpersonal

networks of family, peers, and colleagues for information and guidance, as it helps them reduce

their level of uncertainty. The late majority buyers buy once they have received positive reviews

and heard positive experiences of others.

The late majority makes little use of mass media, and they believe more in WOM

communication. This is because they are well connected within their interpersonal networks, and

trust their friends, peers, neighbours, and relatives more than advertisements and other forms of

marketing communication. Interpersonal communication has a major role to play in their

adoption of the ‘new’.

The late majority is as large a group as the early majority, and brings huge profits for the

company. However, they adopt a wait-and-watch approach before trying and/or buying a new

good or service. Because they buy the new product during later stages of the product’s life cycle,

and because they are a huge segment, they are important in extending the product lifecycle. So

they constitute an important segment for the marketer.

v. Laggards (Traditional):

The laggards are the last to adopt a new good or service offering, and make up the last 16 per

cent of the target market. Laggards are slow and take more time than what is actually necessary,
and by the time laggards actually buy and use a new good or service, it is already on its way

towards obsolescence. In fact, it no longer remains ‘new’, and is in a new version altogether. In

other words, laggards buy the new product, X, when innovators and early adopters are in the

stage of buying the improvised or more advanced version of X, or a completely changed product

as Y.

Laggards are older in age, less educated, and have a low socio-economic status. They do not

have much of exposure, and prefer to be in social contact with only their family members,

relatives, and close friends, who share similar traditional values. They rely on friends, peers, and

neighbours as information sources.

Informal interpersonal WOM communication is essential in influencing the rate of adoption

amongst laggards. Because they are low on financial resources, they are price conscious and wait

for prices to fall. When they buy, they look for low prices, ease of use, and easy availability. In

many cases, they buy because of non-availability of traditional alternatives.

Laggards are conservative, and lay a lot of emphasis on ‘traditions’. They are sceptical, afraid,

and suspicious of anything ‘new’, and do not like to take risks. In other words, they are high-risk

perceivers. They are dogmatic, and dislike and resist change. Until the perceived trusted sources

adopt the product, laggards will not be convinced enough to buy something new.

Laggards take the longest time to adopt an innovation, and the innovation-decision process is the

lengthiest.

They are slow in buying the innovative offering because of several reasons:

a. One, they are uninvolved with the good and service;

b. Two, they do not possess much information;

c. Three, they are tradition bound, and oriented to the past;

d. Four, they remain uninfluenced by social pressure, and social ties are not very strong; and

e. Five, they believe in making routine purchases and prefer to buy the ‘familiar’ rather than the

‘unfamiliar’.

Marketers generally try to ignore this category of adopters. This is because they cannot be

convinced to buy and use something that is new, and will buy much later when it is in the

mainstream.

While laggards are often neglected by marketers, they often exhibit what is known as the

‘leapfrog effect’. Jacob Goldenberg and Shaul Oreg (2007) introduced the concept of

leapfrogging, and explained it as a phenomenon wherein some laggards end up being innovators,

or the earliest of the early adopters of an entirely new product, by skipping various modifications

and/or generations of the once considered ‘new’ product. In this way, they leave out several

product generations and finally adopt the most recent technology. This would mean high profits

for the company.

For example, many people moved straight away from the personal computer (desktop) to the

tablet (they skipped the laptop). Another example is where people moved from the cassette

player to the mp3 shuffle (they skipped the Walkman or the CD Walkman). According to Jacob

Goldenberg and Shaul Oreg, laggards also upgrade to new products.

However, the difference between innovators and laggards is that while the former upgrade

frequently and immediately, the latter upgrade very infrequently. Because laggards are a big

segment, they should not be ignored. The job of the marketer is not to sell to laggards, but to

persuade them to upgrade sooner rather than later.