Diffusion of Innovation and

adoption process

Course tutor: dr surabhi

 Types of innovation

Discontinuous Innovation : Dynamically continuous

New function, not performed
by any previous product
Need for behaviour change
innovation:
improvement of performance
Similar consumption pattern
Continuous innovation :
variation of existing product
Same consumption pattern

Breakthrough Major change Ongoing alteration

Telephones Cordless phones Auto dialling feature, call

forwarding, line in use indicators

Gaming, Bluetooth tranfer , video

Mobiles I phones
conferencing, more memory

Difficult to diffuse
Types of Product Innovation
 Diffusion of Innovation

• Diffusion of innovation curve

• Adoption process
• Characteristics of Innovation
 Why is speed to market different

• Everett Rogers in 1962

wrote a book. Where he
describes a
Diffusion process : It is a macro
phenomenon of
process concerned with the
Diffusion of
spread of new product from its innovation .
source to the consuming public.
• Diffusion of innovations is a theory that
seeks to explain how, why, and at what rate
new ideas and technology spread.

• With successive groups of consumers the

new technology slowly penetrates the
society and is adopted by group of people
Diffusion of innovation
 Stages in Adoption Process
• Knowledge
• Persuasion
• Decision
• Implementation
• Confirmation
Stages of Adoption process and Stages in decision making run
parallel

Knowledge NeedRecognition

Information search
Persuasion

Brand Evaluation
Decision

Implementation Purchase

Confirmation Post purchase evaluation

Profile of Adopters
Linking diffusion with product life cycle
Types of diffusion curves
 Rate of acceptability depends upon

• Relative advantage

• Complexity

• Compatibility

• Observability

• Trialability
 The challenges Barriers of Innovation

• Relative advantage: degree to which this tablet will be perceived to be

superior to existing substitutes. Speeds diffusion---- VALUE BARRIER

• Complexity: degree of difficulty involved in understanding the tablet.

Slows diffusion. ---USAGE BARRIER

• Compatibility : degree to which the new product is consistent with

existing pedagogy, past experiences, and current needs. Incompatibility
may slows diffusion---USAGE BARRIER

• Observability : target segment being so wide spread the benefits and other
results of using a new product can be observed by others and
communicated to target customers. Speeds diffusion
---COMMUNICATION BARRIER

• Trial ability is the degree to which a product can be tried on a limited

basis. Speeds diffusion ---USAGE BARRIER
 Marketing strategies to improve Diffusion

If innovation has Key marketing strategy to Possible marketing mix options to

this problem improve diffusion prospects implement strategy
characteristics
•Low relative Increased value offered Lower prices, advantage over
advantage to consumers existing product,
Tie in product offers stress heavy
advertising or personal selling,
Emphasize the additional features
over existing products
•High Reduces complexity to Redesign product as user friendly,
complexity increase consumer target sophisticated consumers
confidence first, backup with sales support,
minimize problems, Offer product
trials / demonstrations
•Low Increase product fit Redesign product according to
compatibility with needs of consumer different segments,Stress benefits
from innovation, obtain
endorsements from credible
leaders , establish product trials
•Low Increase consumer Provide special educational
Observability understanding / markets,Provide endorsements from