DIFFUSION OF INNOVATION

(Nishan Navaratne)
WHAT IS AN INNOVATION?
It is any idea or product perceived by the
potential adopter to be new. New products are
ideas, behaviour or things that are qualitatively
different from existing forms
Diffusion of innovation(Everett Rogers)

A process by which a new product moves from

initial introduction to regular purchase and use
A process by which an innovation (idea) is
communicated through certain channels over
time among the members of a social system
Everett Rogers
The Adoption Decision Process
Knowledge/Awareness

Interest

Evaluation

Trial

Decision

Confirmation
Adopter classes
Innovators - 2.5%
Early adopters 13.5%
Early majority 34%
Late majority 34%
Laggards 16%
 Adopter Categories

Early Laggards
Adopters
13.5% Early Late 16%
Majority Majority
Innovators 34%
34%
2.5%

Percentage of Adopters by Category Sequence

 Stages in Adoption Process

WHAT HAPPENS
NAME OF EXAMPLE
DURING THIS STAGE
STAGE
Consumer is first exposed Janet sees an ad for a new MP3 player in the
Awareness to the product innovation. magazine she is reading.

Consumer is interested in Janet reads about the MP3 player on the

the product and searches manufacturers Web site and then goes to an
Interest for additional information. electronics store near her apartment and has
a salesperson show her a unit.
Consumer decides whether After talking to a knowledgeable friend,
or not to believe that this Janet decides that this MP3 player will allow
product or service will her to easily download the MP3 files that she
Evaluation satisfy the need--a kind of has on her computer. She also feels that the
mental trial. units size is small enough to easily fit into
her beltpack.
 Stages in Adoption Process

WHAT HAPPENS
NAME OF EXAMPLE
DURING THIS STAGE
STAGE
Consumer uses the product Since an MP3 player cannot be tried like a
on a limited basis small tube of toothpaste, Janet buys the MP3
Trial player online from Amazon.com, which
offers a 30-day full refund policy.

If trial is favorable, Janet finds that the MP3 player is easy to use
consumer decides to use and that the sound quality is excellent. She
the product on a full, rather keeps the MP3 player.
Adoption than a limited basis--if
(Rejection) unfavorable, the consumer
decides to reject it.
 An Enhanced Adoption Process Model

Discontinuation or
Rejection
Rejection

Evaluation

Pre-existing Adoption
problem or Awareness Interest Evaluation Trial or
Need Rejection

Adoption or Rejection
Postadoption or
Postpurchase
Evaluation
Discontinuation
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Innovators: Description

2.5% of population
Venturesome
Very eager to try new ideas
Acceptable if risk is daring
More cosmopolite social relationships
Communicates with other innovators
 11

Early Adopters: Description

13.5% of population
Respected
More integrated into the local social system
The persons to check with before adopting a new idea
Category contains greatest number of opinion leaders
Are role models
 12

Early Majority: Description

34% of population
Deliberate
Adopt new ideas just prior to the average time
Seldom hold leadership positions
Deliberate for some time before adopting
 13

Late Majority: Description

34% of population
Skeptical
Adopt new ideas just after the average time
Adopting may be both an economic necessity and
a reaction to peer pressures
Innovations approached cautiously
 14

Laggards: Description

16% of population
Traditional
The last people to adopt an innovation
Most local in outlook
Oriented to the past
Suspicious of the new
 15

Opinion Leadership

ormally influences the consumption actions or attitudes of

 16

Impact of Opinion Leaders

If you need to reach 2 million people then you just
need to reach the right 2000 in the right way and
they will help you reach 2 million
One influential persons word of mouth tends
to affect the buying attitude of two other people on an average
Incase of Online, this figures goes up to 8 people on an average.
In a study of 7000 consumers in seven European
countries, 60% were influenced to use
new brand by family and friends.
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Personality of Opinion Leaders

They have a keener level of interest

More knowledgeable about the product category

Tend to be more innovative about their purchases

than their followers

Are non-conforming, more self-confident,

more sociable and cosmopolitan and socially higher on perceived risk
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Opinion leadership and Media use

Opinion leadership is not a trait
High knowledge of particular subjects and
media experts
These people absorb certain media messages
and inform their friends, families, and peers
Opinion leaders are not politicians
and clergy and the like (although they can be)
 19

Opinion Leaders
Magnify the change agents efforts
Give sanction and credibility to new ideas
Have followers

In some cases if opinion leaders adopt an

innovation, it is impossible to stop its diffusion
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Confusion with innovators

Innovators are mistaken for opinion leaders

If opinion leaders are too innovative then

they are perceived as too close to change
agents and become less credible
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THANK YOU