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Model of the innovation decision

process
• The traditional view of the innovation decision
process called the adoption process

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
The innovation decision process
The innovation decision process is the process
through which an individual or other decision
making unit passes from
- first knowledge of an innovation
- to forming an attitude toward the innovation
- to a decision to adopt or reject
- to implantation of the new idea
and
- to confirmation of this decision
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
• Awareness stage
Individual learn of the existence of the new idea but lacks information
about it
• Interest stage
Individual develops interest in the innovation and seeks additional
information about it.
• Evaluation stage
Individual makes mental application of the new idea to his present and
anticipated future situation and decides whether or not try it
• Trial stage
Individual actually applies the new idea on a small scale in order to
determine its utility in his own situation
• Adoption Stage
The individual uses the new idea continuously on
a full scale

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
• The process consists of a series of action and choices
over time through which an individual or
organization evaluates a new idea and decides
whether or not to incorporate the new idea ongoing
practice.

• This behaviour consists essentially of dealing with


uncertainty that is inherently involved in deciding
about a new alternative.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Individual’s decision about an innovation

• Is not an instantaneous act


• Is a process occurs over time
and
• Consist of series of action

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Stages of innovation decision process

1. Knowledge stage
2. Persuasion stage
3. Decision stage
4. Implementation stage
5. Confirmation stage

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
• The innovation decision process is the mental
process through which an individual passes from
first knowledge of an innovation to a decision to
adopt or reject and to confirmation of this
decision
• The process always ends in adoption decisions,
whereas in reality rejection may also be a likely
outcome.
• The five stages do not always occurs in the
specified order, and some of them may be
skipped.
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
• Evaluation actually occurs throughout the
process rather than just at one of the five
stage.
• The process seldom ends with adoption, as
further information seeking may occur to
confirm or reinforce the decision.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
1. Knowledge stage
The innovation-decision process starts with the
knowledge stage.

In this stage, an individual learns about the existence of


innovation and seeks information about the innovation.

“What?,” “how?,” and “why?” are the critical questions


asked in the knowledge phase.

During this phase, the individual attempts to determine


“what the innovation is and why and how it works”?
• Knowledge occurs when an individual (or
other decision making unit) is exposed to the
innovation’s existence and gains some
understanding of how it functions.
• There are two sides
Awareness of need
Awareness of innovation

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
• Awareness of need or awareness of innovation,
which comes first?
• Chicken or egg, which comes first?

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Early Vs. Late knowers of innovation
• Early knowers of an innovation have more
education than later knowers
• Early knowers of an innovation have high social
status than later knowers
• Early knowers of an innovation have more
exposure to mass media and interpersonal
channels of communication than later knowers

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
• Early knowers of an innovation have more
change agent contact than later knowers
• Early knowers of an innovation have more
social participation than later knowers
• Early knowers of an innovation have more
cosmopolite than later knowers

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Type of knowledge

Awareness Knowledge
Information regarding, what is the innovation?
How does it work?
1.How to knowledge
Consist of information necessary to use an innovation
properly
Ex:
Complex city How to knowledge

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
2. Principle knowledge
Consists of information dealing with the
functioning principles underlying how the
innovation works
Basically form formal education
Ex:
Biology of plant growth

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Knowledge – Behaviour Consistency
• Knowing about an innovation is often quite a
different matter from using the idea
• Most individuals know about many
innovations which they have not adopted
• Why?

• Attitudes

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
2. Persuasion stage

• The persuasion step occurs when the individual


has a negative or positive attitude toward the
innovation, but “the formation of a favourable or
unfavourable attitude toward an innovation does
not always lead to an adoption or rejection".
• The individual shapes his or her attitude after he
or she knows about the innovation, so the
persuasion stage follows the knowledge stage in
the innovation-decision process.
Persuasion stage
• The individual is interested in the innovation and
actively seeks related information/details.
• Occurs when an individual (or other decision making
unit) forms a favourable or unfavourable attitude
toward the innovation.
• In this stage, psychologically involved with the
innovation, mentally apply the new idea to his or her
present or anticipated future situations.
• Relative advantage, compatibility and complexicity of
an innovation is very important in this stage.
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
• In this stage
individual seeks where information receives
what message receives
how individual interprets the information
• There are two level of attitudes
a specific attitude toward the innovation
a general attitude toward change

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Attitude – Behaviour Consistency
• Formation of a favorable or unfavorable attitude
toward an innovation does not always directly or
immediately to an adoption or rejection decision
• Why?
Innovation dissonance
Innovation dissonance is the discrepancy between an
individual’s attitude toward an innovation and his
decision to adopt or reject the innovation.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
3. Decision stage
• The individual takes the concept of the change and weighs
the advantages/disadvantages of using the innovation and
decides whether to adopt or reject the innovation. Due to
the individualistic nature of this stage, Rogers notes that it
is the most difficult stage on which to acquire empirical
evidence.
• Decision stage occurs when an individual (or other decision
making unit) engages in activities that lead to adopt or
reject the innovation.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
• Adoption is high, if
- Innovation has at least a certain degree of
relative advantage
- Methods to facilitate the trial of innovation
Ex. Demonstrations, Free samples

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Type of Innovation Decisions

Two factors determine what type a particular


decision is:
1. Whether the decision is made freely and
implemented voluntarily
2. Who makes the decision.

Based on these considerations, three types of


innovation-decisions have been identified.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Type of Innovation Decisions

1. Optional decision
• Optional decisions are made by an individual
regardless of the decisions of other members
of the system.
• The individual’s decision is undoubtedly
influenced by the norms of his social system.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Type of Innovation Decisions

2. Collective decision
• Collective decisions are those which
individuals in the social system agree to make
by consensus.
• All must conform to the system’s decision
once it is made.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Type of Innovation Decisions

3. Authority decision
• Authority decisions are those forced upon an
individual by someone in a super ordinate
power position.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
4. Implementation stage

• Occurs when an individual (or other decision


making unit) puts an innovation into use.
• It is strictly mental exercise up to this stage and
then involves behavioural change as the new idea
is put into practice.
• A point is reached at which the new idea
becomes an institutionalized and regularized part
of thee adopters’ ongoing operations, is the end
of the implementation stage
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
Re-invention
• Is the degree to which an innovation is changed or
modified by a user in the process of its adoption and
implementation.
• Occurs at the implementation stage for certain
innovations and certain adopters.
• Is good on adopters point of view. But it does not
receive much favourable attention from research,
development and diffusion agencies.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Reasons for Re-invention

1. Innovation those are relatively more complex and


difficult to understand.
2. Lack of detailed knowledge of the innovation.
3. Innovations consist of elements that are not highly
interrelated.
4. Innovations that can be implemented for wide
range of problems.
5. Local pride of ownership of an Innovation .
6. Influence by the change agency.
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
5. Confirmation stage

• The individual finalizes his/her decision to


continue using the innovation.
• This stage is both intrapersonal (may cause
cognitive dissonance) and interpersonal,
confirmation the group has made the right
decision.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Cognitive dissonance
• Cognitive dissonance is the mental stress or
discomfort experienced by an individual who
holds two or more contradictory beliefs, ideas,
or values at the same time, or is confronted by
new information that conflicts with existing
beliefs, ideas, or values.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
Influence of Product Characteristics on consumer
decisions

• Relative Advantage: Is the innovation superior to existing


products?
• Compatibility: Does the innovation fit the values and
experience of the target market?
• Complexity: Is the innovation difficult to understand or use?
• Divisibility: Can the innovation be used on a limited basis?
• Communicability: Can results be easily observed or described
to others?
Discontinuance
• Is a decision to reject an innovation after
having previously adopted it.
• There are three types
1. Replacement discontinuances
2. Disenchantment discontinuances
3. Forced discontinuances

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Discontinuance
1. Replacement discontinuances
- is a decision to reject an idea in order to
adopt a better idea or innovation that
supersedes it.
- each new idea replaces an existing practice
especially in fields which has constant waves
of innovation
Ex: Agro chemicles
Diffusion of Agric Innovations
AL Sandika
Dept of AgriEconomics
Discontinuance
2. Disenchantment discontinuances
- is a decision to reject an idea or innovation as a result
of dissatisfaction with its performances
- It may be due to
* inappropriate for the individual
* does not give relative advantage over alternative
practices
* warning from responsible agencies regarding side
effects, no longer safe etc.

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics
Discontinuance
3. Forced discontinuances
- in which an idea is rejected due to order by
authority like police etc.
Ex; Chemical innovations

Diffusion of Agric Innovations


AL Sandika
Dept of AgriEconomics

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