Innovation: An innovation is an idea, practice or objective that is perceived as new by an

individual or other unit of adoption. It may be new variety/ breed of fish, new chemicals or
medicines, new techniques of doing things etc. Sometimes farmers also develop new
practice which is also consider as an innovation.
“The practical implementation of ideas that lead to the introduction of new goods or
services, or improvements to existing ones. Innovation can also involve redesigning
workflows, technologies, and systems to improve the delivery of products or services.”

Adoption: “Adoption is the decision-making process” to make full use of an innovation as the
best course of action available.
Here are some definitions for innovation: firm-oriented, product-oriented, market-oriented,
and consumer-oriented:
 Firm-oriented - Product is “new” to the company
An approach that considers the newness of a product from a firm's perspective.
 Product-oriented -- Continuous -- Dynamically continuous -- Discontinuous
A management philosophy that focuses on the quality of a product rather than the
needs of the target market. Product-oriented companies create unique and
innovative products or services, but don't focus as much on market size or potential
demand.
 Market-oriented - Based on consumer exposure
A focus on creating products that meet customer needs and demands, based on
market research and findings. Market-oriented companies focus on potential
demand for their products.
 Consumer-oriented - Consumer judges it as “new”
A focus on the needs, wants, and satisfaction of customers, and understanding and
empathizing with each individual.

Types of Innovations : The definition of what is a “new product” varies among product
developers and marketing strategists. From a consumer perspective, an innovation
represents any item that the consumer perceives as new.
Many marketers maintain that new products should be classified into three categories
reflecting the extent to which they require consumers to change existing consumption
behavior or buying patterns.
1. A continuous innovation has the least disruptive influence on established behavior. It
involves the introduction of a modified product rather than a totally new product.
Examples include the newly redesigned Apple MacBook, the latest version of Microsoft
Office, reduced-fat Oreo cookies, Hershey Cacao (i.e., a form of dark) chocolate bars,
American Express gift cards, Band-Aid Tough-Strips, and the Oral-B® Advantage Glide.
2. A dynamically continuous innovation is somewhat more disruptive than a continuous
innovation but still does not alter established behavior. It may involve the creation of a new
product or the modification of an existing product. Examples include digital cameras, digital
video recorders, MP3 players, DVRs, USB flash drives, and disposable diapers.
3. A discontinuous innovation requires consumers to adopt new behavior. Examples include
airplanes, radios, TVs, automobiles, fax machines, PCs, videocassette recorders, medical
self-test kits, and the Internet.

THE DIFFUSION OF INNOVATIONS

The term ‘diffusion of innovations’ was coined by rural sociologist, Everett M Rogers, in his
classic 1962 book of the same name. In that book Rogers outlined the social
communications processes that enabled the spread of new technologies and ideas.
The model’s founder, Everett Rogers, considered this S-curve the best depiction of how
innovations are diffused through a social system.
It originated in communication to explain how, over time, an idea or product gains
momentum and diffuses (or spreads) through a specific population or social system . The end
result of this diffusion is that people, as part of a social system, adopt a new idea, behavior,
or product.
“A theory that every market has groups of customers with different knowledge and
willingness to adopt a new product; an innovative product spreads (diffuses) through a
market over time as people become more aware of the innovation, and are able to adopt”
“The process by which the acceptance of an innovation is spread by communication to
members of a social system over a period of time”
“Diffusion of innovations is the macro process by which the acceptance of an innovation (i.e.,
a new product, new service, new idea, or new practice) takes place among members of a
social system (or market segments), over time.”
This process includes four elements:
1. The Innovation: new product, model, or service.
The "newness" aspect of an innovation may be expressed in terms of
knowledge, persuasion or a decision to adopt.
In this context, to know about the perceived attributes of
innovation would be appropriate which are described in the succeeding
paras: Product Characteristics

Degree to which consumers consider it superior to existing

Relative substitutes. The degree of relative advantage may be measured
Advantage in economic terms, but social-prestige factors, convenience and
satisfaction are also often the important components.

Degree to which consumers feel it is consistent with

Compatibility their present needs, values, and practices.

Complexity The degree to which it is difficult to understand or use

Trialability The degree to which it can be tried on a limited basis

The degree to which its benefits can be observed, imagined, or

Observability described

2. The Channels of Communication: informal or formal, impersonal or personal groups.

• Channels of communication : - Marketer to consumer - Consumer to consumer -
Influential impersonal sources
3. The social system: a market segment.
It is defined as a set of interrelated units that are engaged in joint problem solving to
accomplish a common goal. The members or units of a social system may be individuals,
informal groups, organisations and / or subsystems. The social system constitutes a
boundary within which an innovation diffuses.
4. Time. The time dimension is involved in diffusion (i) in the innovation - decision process,
(ii) in the innovativeness of an individual or other unit of adoption, and (iii) innovation's rate of
adoption in a system.
In contrast, the innovation adoption process is a micro process that focuses on the stages
through which an individual consumer passes when deciding to accept or reject a new
product.
There are five main factors that influence adoption of an innovation,
and each of these factors is at play to a different extent in the five
adopter categories.

Innovation : Product Features That Affect Adoption : Product Characteristics

Some products catch on very quickly (e.g., affordable cell phones), whereas others take a
very long time to gain acceptance or never seem to achieve widespread consumer
acceptance (e.g., electric cars).
Relative advantage is the degree to which potential customers perceive a new product as
superior to existing substitutes. For example, cellular telephones enable users to be in
communication with the world and allows users to both receive and place calls and text
messages. The fax machine offers users a significant relative advantage in terms of ability to
communicate. A document can be transmitted in as little as 15 to 18 seconds at perhaps
one-tenth the cost of an overnight express service, which will not deliver the document until
the following day
Compatibility is the degree to which potential consumers feel a new product is consistent
with their present needs, values, and practices. Similarly, in the realm of shaving products, it
is not too difficult to imagine that a few years ago, when Gillette introduced the Fusion razor,
some men made the transition from inexpensive disposable razors and other men shifted
from competitive nondisposable razors (including Gillette’s own MACH3 razors) to using the
new product. This newer product is fully compatible with the established wet-shaving rituals
of many men. However, it is difficult to imagine male shavers shifting to a new depilatory
cream designed to remove facial hair. Although potentially simpler to use, such a cream is
incompatible with most men’s current values regarding daily shaving practices. Compatibility
varies across cultures.
Complexity—the degree to which a new product is difficult to understand or use—affects
product acceptance. Clearly, the easier it is to understand and use a product, the more likely
that product is to be accepted. For example, the acceptance of such convenience foods as
frozen french fries, instant puddings, and microwave dinners is generally due to their ease of
preparation and use. The introduction of cable boxes with built-in DVRs has helped to reduce
the ongoing challenge involved in easily recording a TV program.
The issue of complexity is especially important when attempting to gain market acceptance
for high-tech consumer products. Four predominant types of “technological fear” act as
barriers to newproduct acceptance: (1) Fear of technical complexity, (2) fear of rapid
obsolescence, (3) fear of social rejection, and (4) fear of physical harm. Of the four,
technological complexity was the most widespread concern of consumer innovators.
Trialability: refers to the degree to which a new product can be tried on a limited basis. The
greater the opportunity to try a new product, the easier it is for consumers to evaluate the
product and ultimately adopt it. In general, frequently purchased household products tend to
have qualities that make trial relatively easy, such as the ability to purchase a small or “trial”
size. Because a computer program cannot be packaged in a smaller size, many computer
software companies offer free working models (demo versions) of their latest software to
encourage computer users to try the program and subsequently buy the program.
Observability (communicability) is the ease with which a product’s benefits or attributes can
be observed, imagined, or described to potential consumers. Products that have a high
degree of social visibility, such as fashion items, are more easily diffused than products that
are used in private, such as a new type of deodorant. Similarly, a tangible product is
promoted more easily than an intangible product (such as a service)
The diffusion process
In consumer behavior, a diffusion process refers to the spread of a new product, service, or
innovation through a population over time. This concept is often associated with the diffusion
of innovations theory proposed by sociologist Everett Rogers in 1962.
“The process by which the acceptance of an innovation is spread by communication to
members of a social system over a period of time”
Here's how the diffusion process typically unfolds in consumer behavior:
1. Innovation: (Venturesome, Advance Scouts, and Experimenters) It begins with the
introduction of a new product or service into the market. This could be anything from a
technological gadget to a new type of food or a novel service. They are venturesome
and interested in new ideas. They are alert and actively seeking new ideas. They
desire the hazardous, daring, risky jobs. They have ability to understand and apply
complex technical knowledge. They are first to launch the new idea in the social
system.
 Innovators are the risk-takers in the market. As a general rule, they have higher-than-
average income and are typically well-educated. They enjoy the “rush” of taking risk
but are also willing to accept the consequences of failure. It’s the innovators who buy
new products as soon as they hit the market.

2. Early Adopters: (Respectable) Early adopters are actually the best target market for
new innovations. These people tend to be well-educated “opinion leaders” with
neighbors and friends, and their product advice is generally accepted more readily
than product advice provided by innovators.
Initially, the innovation is adopted by a small group of people known as early
adopters. These individuals are often risk-takers and are eager to try new things.
While innovators are cosmopolite, early adopters are localite. They are more
integrated in the local social system than the innovators

3. Early Majority: (Deliberate) The early majority typically look to the innovators and
early adopters to determine if the new product meets expectations because they don’t
want to take the risk of being the first to adopt the new product, but they do accept
innovation before the “average person.” This group of consumers is typically above
average in terms of education and income but also tend to be “followers” in their
social group.
As the early adopters embrace the innovation, it begins to gain traction among the
early majority. This group comprises a larger segment of the population and tends to
adopt new products after they have been proven successful by the early adopters.
Strategies to appeal to this population include success stories and evidence of the
innovation's effectiveness.
4. Late Majority: (Skeptical, Doubtful, Suspicious) Following the early majority, the late
majority starts to adopt the innovation. This group tends to be more skeptical and
adopts new products only after they have become mainstream.

About 34 percent of the population will buy a new product only after about half of the
population does. They’re not interested in the “bells and whistles” (i.e., functionality
and benefits) of the “latest model” and want simple, cost-effective products that focus
on specific uses. As a general rule, their income and education are limited, and
 they’re typically unwilling to take a chance with a new product unless the majority of
consumers has already adopted the innovation.

5. Laggards: (Traditional) Finally, the laggards are the last group to adopt the innovation.
They are typically resistant to change and may continue using older products or
methods for an extended period.
Throughout this process, various factors influence the diffusion of the innovation, including
marketing efforts, word-of-mouth recommendations, perceived benefits, price, and
accessibility. Marketers often employ strategies to facilitate the diffusion process, such as
targeted advertising campaigns, product demonstrations, and incentivized referrals to
accelerate adoption rates among different consumer segments. Understanding the diffusion
process is crucial for businesses to effectively launch and promote new products or services
in the market.
Adopter Categories

Category 1 - Category 2 – Category 3 – Category 4 – Category 5 –

Innovators Early adopters Early Majority Late Majority Laggards

First to buy the Will buy mini Members of the Second half of Very last to
mini netbook netbook shortly 1st ½ of the the “mass purchase the mini
after its “mass market” market” who netbook, if at all
introduction who would would purchase
purchase the the mature mini
mini netbook netbook
New Product Adopter Categories

Adopter categorization on the basis of innovativeness

The Adoption Process The innovation adoption process consists of five stages through which
potential consumers pass in attempting to arrive at a decision to try or not to try a new or
innovative product.
The five stages are:
1. Awareness: The consumer becomes aware that an innovation exists.
2. Interest: The consumer becomes interested in the innovative product or service.
3. Evaluation: The consumer undertakes a “mental trial” of the innovation.
4. Trial: The consumer tries the innovation.
5. Adoption: If satisfied, the consumer decides to use the innovation repeatedly.

consumer adoption process (often referred to as the “hierarchy of effects

model”) in some detail.
Rate of Adoption
How long does it take a new product to be adopted by the members of a social system?
Adoption Process
The stages through which an individual consumer passes in arriving at a decision to try (or
not to try), to continue using (or discontinue using) a new product.
“Adoption is the decision-making process to make full use of an innovation as the best
course of action available”
In consumer behavior, the adoption process refers to the series of steps or stages that
individuals go through before fully accepting and integrating a new product, service, or
innovation into their lives. This concept is closely related to the diffusion of innovations theory
proposed by Everett Rogers, but it focuses more specifically on the individual consumer's
journey rather than the overall spread of an innovation through a population.
The adoption process typically consists of the following stages:
1. Awareness: The consumer becomes aware of the existence of the new product or
innovation. This awareness can result from various sources such as advertising,
word-of-mouth, or personal observation.
Let’s assume for a minute that you’re watching a football game on
Saturday afternoon, and you see a television commercial for a
mouthwash that whitens your teeth while you rinse. You’re now
aware of the product, thanks to that commercial!

2. Interest: After becoming aware of the product, the consumer develops an interest in
learning more about it. They may seek out additional information, read reviews, or
compare it to similar offerings in the market.
such as a website, blog posts, tutorials, or instructional videos.
Let’s go back to our mouthwash example. You’re intrigued with
the concept that a mouthwash can whiten your teeth, so you call
your brother who’s a dentist to ask if he’s familiar with the
product and what he has to say about it. That’s product interest.

3. Evaluation: In this stage, the consumer evaluates the new product or innovation
based on its perceived benefits, features, and value proposition. They consider how
well it meets their needs and whether it represents an improvement over existing
alternatives.
 In our example of the mouthwash, you might do an Internet
search to read reviews of the product before you actually
purchase it. That’s product evaluation.

4. Trial: If the consumer is sufficiently convinced of the product's merits during the
evaluation stage, they may choose to try it out for themselves. This could involve
purchasing the product or service, using a free trial or sample, or participating in a
demonstration.
It might be a free sample in a retail store or a “100 percent money-back
guarantee” trial purchase of an online product. This is also the stage in
which marketers are hoping that the product will deliver on consumer
expectations.

5. Adoption: The individual actually applies the new idea on a small scale in order to
determine its utility in own situation. The final stage of the adoption process occurs
when the consumer decides to fully integrate the new product or innovation into their
regular consumption patterns. They become regular users or consumers of the
product and incorporate it into their daily routines.
As a marketer, hopefully you’ve made the acquisition and
payment process as seamless as possible so that your customers
can easily obtain your product.

Throughout the adoption process, various factors can influence the consumer's decision-
making, including perceived benefits, ease of use, compatibility with existing habits and
preferences, social influences, and personal experiences. Marketers often tailor their
strategies to address consumers' needs and concerns at each stage of the adoption
process, with the goal of facilitating a smooth transition from awareness to adoption.
Understanding the adoption process is essential for businesses seeking to effectively
introduce and promote new offerings in the market.
The Consumer Innovator
• The earliest purchasers of a new product
• Tend to have higher level of:
– Education
– Social interaction
– Opinion leadership
– Venturesomeness
– Social Status
• Personality traits
 – Perceived risk and venturesomeness
– Purchase and consumption characteristics
– Media habits
• Social characteristics
• Demographic characteristics

Consumer Innovators and Innovativeness

Innovators are the first to try new products, product line extensions, and services because
they are open to new ideas and practices. Consumer innovators are enthusiastic about
innovative products and can speed up the market acceptance of innovations, because they
tell others about their purchases and often show them the new products.
Furthermore, as more consumer innovators discuss the new products online, their domains
of innovative behavior expand.
Innovativeness is the degree of a consumer’s willingness to adopt new products and
services shortly after the products are introduced.
One study discovered four motivational factors that inspire consumer innovativeness:
1. Functional factors reflect interest in the performance of an innovation.
2. Hedonic factors relate to feeling gratified by using the innovation.
3. Social factors reflect the desire to be recognized by others because of one’s pursuit of
innovations.
4. Cognitive factors express the mental stimulation experienced by using an innovation.
most researchers view innovativeness as a single personality trait, one study identified three
levels of innovativeness:
1. Global innovativeness—a trait that exists independent of any product-related context and
represents the “very nature” of consumers’ innovativeness
2. Domain-specific innovativeness—a narrowly defined activity within a specific domain or
product category
3. Innovative behavior—actions or responses that indicate early acceptance of change and
adoption of innovations (e.g., being among the first to purchase new and different products
or services).
PROFILE OF THE CONSUMER INNOVATION
1. (i) Consumer innovators can be defined as the relatively small group of consumers who
are the earliest purchasers of a new product. According to Leon G. Shiftman and Leslie
Lazer Kanuk, the problem with this definition, concerns the concept "earliest," which is a
relative term. Sociologists have sometimes defined innovators as the first 2.5 per cent of the
social system to adopt an innovation.
(ii) In many marketing diffusion studies has been defined new product under investigation. If
researchers define a new product as an innovation for the first three months of its availability,
then they define the consumers who purchase it during this period as "innovators."
(iii) Other researchers have defined innovators in terms of their ineffectiveness-that is their
purchase of some minimum number of new products from a selected group of new products.
For example, in the adoption of new fashion items, innovators can be defined as those
consumers who purchase more than one fashion product from a group of ten new fashion
products. Non-innovators are those who purchase none or only one of the new fashion
products.
(iv) Researchers have defined Innovators as those falling within an arbitrary proportion of the
total market such as the first 10 per cent of the population in a specified geographic area to
buy the new product.
2. Interest in the product category. Consumer innovators are much more interested in the
product category so that they are among the first to purchase. For example, the earliest
purchasers of small electric automobiles are likely to have substantially greater interest in
automobiles than those who purchase conventional small cars during the same period, or
those who purchased small electric cars during a later period.
As compared to non innovators, Consumer innovators are more likely to seek information
concerning their specific interests from a variety of informal and mass-media sources. As
compared to non innovators they are more likely to give greater deliberation to the purchase
of new products or services in their areas of interest.
3. Opinion leaders. There is a strong tendency for innovators to be consumer opinion
leaders. They guide other consumers with information and advice about new products. The
receiver frequently follows such advice. Thus the consumer innovator often influences the
acceptance or rejection of new products in the role of opinion leader.
If innovators are enthusiastic about a new product they encourage others to try it, and the
product is likely to receive broader and quicker acceptance. If they are dissatisfied with a
new product they discourage other from trying it. And its acceptance will be severely limited.
Consumer innovators may not be sufficiently motivated to provide either positive or negative
advice for product that do not generate much excitement. Therefore the marketer must rely
almost entirely on mass media and personal selling to influence future purchasers. The
absence of informal influence is also likely to result in a somewhat slower rate of acceptance
or in rejection of the new product. As motivated consumer innovators influence the rate of
acceptance or rejection of a new product, they decide its eventual success or failure.
4. Personality traits. Researchers have learned the following about the personality of the
consumer innovator;
(i) Less dogmatic than non innovators: They approach new or unfamiliar products with
considerable openness and little anxiety.
(ii) Inner-directed: They rely on their own values or standards when making a decision about
a new product. In contrast, noninnovators are other-directed, they rely on others for guidance
on how to respond to a new production rather than trusting their own personal values or
standards. As acceptance of a product progresses from early to later adopters, a gradual
shift occurs in the personality type of adopters from inner-directedness to other-directed. The
initial purchasers of a new model automobile were inner-directed, while later purchasers of
the same model tended to be other-directed.