The process by which

the acceptance of an
innovation is spread by
Diffusion
communication to
Process
members of social
system over a period of
time.

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 The stages through
which an individual
consumer passes in
Adoption arriving at a decision to
Process try (or not to try), to
continue using (or
discontinue using) a new
product.

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 Elements of the Diffusion
Process
1. The Innovation
2. The Channels of Communication
3. The Social System
4. Time

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 Defining Innovations
• Firm-oriented definitions
– Product is “new” to the company
• Product-oriented definitions
– Continuous
– Dynamically continuous
– Discontinuous
• Market-oriented definitions
– Based on consumer exposure
• Consumer-oriented definitions
– Consumer judges it as “new”

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Product-Oriented Definitions

Continuous Innovation

Dynamically
Continuous Innovation

Discontinuous
Innovation

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Telephone Innovations

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Product Characteristics That
Influence Diffusion
1. Relative Advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability

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 Influences on the Rate of Adoption
of New Products

Communicability Relative Advantage

Can results be easily Is the innovation
observed or described superior to existing
to others? products?

Product
Characteristics Compatibility
Trialability Does the innovation
Can the innovation fit the values and
be used on a experience of the
trial basis? target market?
Complexity
Is the innovation
difficult to
understand or use?

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Characteristics That Influence Diffusion

CHARACTERISTICS EXAMPLES

Air travel over train travel,

Relative
cordless phones over corded
Advantage
telephones
Gillette MACH3 over disposable
Compatibility razors, digital telephone
answering machines over
machines using tape
Electric shavers, instant
Complexity puddings

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continued
CHARACTERISTICS EXAMPLES

Trial size jars and bottles of new

Trialability products, free trials of software,
free samples, cents-off coupons

Clothing, such as a new Tommy

Hilfiger jacket, a car,
Observability
wristwatches, eyeglasses

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 Time and Diffusion
• Purchase Time
• Adopter Categories
• Rate of Adoption

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 A sequence of
categories that
describes how early (or
Adopter
late) a consumer
Categories
adopts a new product
in relation to other
adopters.

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Adopter Categories

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1.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

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2.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

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3.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

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4.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

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5.Laggards: Description
• 16% of population
• Traditional
• The last people to adopt an innovation
• Most “localite” in outlook
• Oriented to the past
• Suspicious of the new

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Adoption
Adoption
Trial
Trial
Evaluation
Evaluation
Interest
Interest
Awareness
Awareness
Stages in the Adoption Process
 Stages in Adoption Process
WHAT HAPPENS
NAME OF EXAMPLE
DURING THIS STAGE
STAGE
Consumer is first Eric sees an ad for a 23-inch thin LCD
Awareness exposed to the product HDTV in a magazine he is reading.
innovation.
Consumer is interested in Eric reads about the HDTV set on the
the product and searches manufacturer’s Web site and then goes to
Interest
for additional an electronics store near his apartment and
information. has a sales person show him the unit.
Consumer decides After talking to a knowledgeable friend,
whether or not to believe Eric decides that his TV will fit nicely on
that this product or top of the chest in his bedroom. He also
Evaluation
service will satisfy the calls his cable company and finds out that
need--a kind of “mental he can exchange his “standard” cable box
trial.” at no cost for an HDTV cable box.

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 Stages in Adoption Process
WHAT HAPPENS
NAME OF DURING THIS STAGE EXAMPLE
STAGE
Consumer uses the Since the HDTV set cannot be “tried” like
product on a limited a small tube of toothpaste, Eric buys the
Trial basis TV at this local electronics store on his
way home from work. The store offers a
14-day full refund policy.
If trial is favorable, Eric loves his new HDTV set and expects
consumer decides to use many year of service from it.
the product on a full,
Adoption rather than a limited
(Rejection) basis--if unfavorable, the
consumer decides to
reject it.

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