Chapter- 8

The Diffusion of Innovation

Chap-8 The Diffusion Process - Yalew Gorfu 1

The Diffusion of Innovation
• Learning Objectives
• Upon completion of this chapter the student will
be able to:

– Define diffusion process

– Identify and describe the process of the
diffusion process
– Explain the adoption process
– Describe the innovation Decision
process
– Explain A profile of the consumer
2
innovator
 The Diffusion of Innovation
• The diffusion process is concerned with how
innovations spread, that is, how they are assimilated
within a market.

• Diffusion is the process by which the acceptance of

an innovation (a new product, new service, new idea,
or new practice) is spread by communication (mass
media, salespeople, or informal conversations) to
members of a social system (a target market) over a
period of time.
• This definition includes the four basic elements of the diffusion process:
1. The Innovation,
2. The Channels of communication,
3. The Social System, and
4. Time

Chap-8 The Diffusion Process - Yalew Gorfu 3

The Diffusion of Innovation

• i) THE INNOVATION
• No universally accepted definition of the terms
“product innovation” or ”new product” exists.

• Instead, various approaches have been taken to

define a new product or a new service; these can
be classified as :
a) Firm-oriented
b) Product-oriented
c) Market-oriented , and
d) Consumer-oriented.
Chap-8 The Diffusion Process - Yalew Gorfu 4
The Diffusion of Innovation
A. Firm-Oriented Definitions
– A firm-oriented approach treats the newness of a
product from the perspective of THE COMPANY
PRODUCING OR MARKETING IT.
– When the product is actually new to the
marketplace. (i.e., to competitors or consumers).
– Consistent with this view, copies or modifications of
a competitor’s product would qualify as new.
– Although this definition has considerable merit when
the objective is to examine the impact that a “new”
product has on the firm, it is not very useful when
the goal is to understand consumer acceptance of a
new product.
Chap-8 The Diffusion Process - Yalew Gorfu 5
The Diffusion of Innovation
B. Product-Oriented Definitions
– In contrast to firm-oriented, approach focuses on
the features inherent in the product itself and on
the effects these features are likely to have on
consumers’ established usage patterns.
– One product-oriented framework considers the
extent to which a new product is likely to disrupt
established behavior patterns.

Chap-8 The Diffusion Process - Yalew Gorfu 6

The Diffusion of Innovation
•
It defines the following three types of
product innovations.
 A continuous innovation has at LEAST DISRUPTIVE
influence on established patterns. It involves the
introduction of a modified product, rather than a totally
new product.
 A dynamically continuous innovation is somewhat more
disruptive than a continuous innovation but still does not
alter established behavior patterns. It may involve the
creation of a new product or the modification of an
existing product. Examples include 8-mm camcorders,
compact disc players, erasable-ink pens, and disposable
diapers.
 A discontinuous innovation requires consumers to adopt
new behavior patterns. Examples include fax machines,
cellular telephones, home computers, videocassette
recorders, medical self-test kits, and the Internet.
Chap-8 The Diffusion Process - Yalew Gorfu 7
The Diffusion of Innovation

C. Market-Oriented Definitions
• A market-oriented approach judges the newness of
a product in terms of how much exposure
consumers have to the new product.
• Two market-oriented definitions of product
innovation have been used extensively in consumer
studies:
– A product is considered new if it has been
purchased by a relatively small (fixed) percentage
of the potential market.
– A product is considered new if it has been on the
market for a relatively short (specified) period of
time.
–

Chap-8 The Diffusion Process - Yalew Gorfu 8

The Diffusion of Innovation
D. Consumer-Oriented Definitions

• Although each of the three approaches described

above have been useful to consumer researchers in
their study of the diffusion of innovations, some
researchers have favored a consumer-oriented
approach in defining an innovation.

• In this context, a “new” product is any product that

a potential consumer judges to be new.

• In other words, newness is based on the consumer’s

perception of the product, rather than on physical
features or market realities.
Chap-8 The Diffusion Process - Yalew Gorfu 9
The Diffusion of Innovation
• Product Characteristics That
Influence Diffusion
– All products that are “new” do not have equal potential
for consumer acceptance.
– Some products seem to catch on almost overnight (e.g.,
cordless telephones), while others take a very long time
to gain acceptance is never seem to achieve widespread
consumer acceptance (e.g., trash compactors).
– The uncertainties of product marketing would be
reduced if marketers could anticipate how consumers
will react to their products.
– For example, if a marketer knew that a product
contained inherent features that were likely to inhibit its
acceptance, the marketer could develop a promotional
strategy that would compensate for these features or
decide not to market the product at all.
Chap-8 The Diffusion Process - Yalew Gorfu 10
The Diffusion of Innovation

• Five product that seem to

characteristics
influence consumer acceptance of new
products:
1. Relative Advantage
2. Compatibility
3. Complexity
4. Trilability
5. Observability (Or Communicability)

Chap-8 The Diffusion Process - Yalew Gorfu 11

The Diffusion of Innovation

a)Relative Advantage
– The degree to which potential customers
perceive a new product as superior to existing
substitutes is its relative advantage.
– For example, although many people carry
beepers so that their business offices or familiars
can contact them, receiving a “beep” signal still
requires the user to find a telephone (and
working public telephones are not always close
at hand) and place a return call.

Chap-8 The Diffusion Process - Yalew Gorfu 12

The Diffusion of Innovation
 In contrast, a cellular telephone enables users to be
in nearly instant communication with the world and
allows users to both receive and place calls.

 In addition to unique product features,

a promotional
program (including, for example,
cents-off coupons, two-for-one sales, a seal of
approval, or a variety of special services) also may
be perceived as offering a relative advantage and
can lead to increase acceptance.

Chap-8 The Diffusion Process - Yalew Gorfu 13

The Diffusion of Innovation
b)Compatibility
• The degree to which potential consumers feel a new
product is consistent with their present needs, values, and
practices is a measure of its compatibility.
• For example, it is not too difficult to imagine men making
the transition form permanent razors involving disposal
of only the blade to fully disposable razors that are
completely discarded after the blade becomes dull.
• These changes are 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, a cream would be
basically incompatible with most men’s current values
regarding daily shaving practices.
Chap-8 The Diffusion Process - Yalew Gorfu 14
The Diffusion of Innovation
c) Complexity
• The degree to which a new product is difficult to understand
use, affects product acceptance.
• Clearly, the easier it is to understand and use a product, the
more likely it to be accepted.
• For example, the acceptance of such convenience foods as
frozen French fires, instant puddings, and microwave
dinners is generally due to their ease of preparation and use.
• 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 new product acceptance:
• Fear of technical complexity,
• Fear of rapid obsolescence,
• Fear of physical harm. Of the four, technological complexity was the most
widespread concern of consumer innovators.
The Diffusion of Innovation
d) Trilability
 Refers to the degree to which a new product is capable of being tried
on a limited basis.
 The greater the opportunity to try a new product, the easier it is for
consumers to evaluate it and ultimately adopt it.
 In general, frequently purchased household products tend to have
qualities that make trial relatively easy.
 For instance, for many supermarket products, consumers can make a
trial purchase of a new brand in a smaller quantity than they might
usually purchase.
 Marketers of such products recognize that smaller-than-average
sizes tend to stimulate new-product trial.
 Aware of the importance of trial, marketers of new
supermarket products commonly use substantial cents-off
coupons or free samples to provide consumers with direct product
experience.
 These promotions provide consumers with little-or-risk
opportunities to try new products.
 On the other hand, durable items, such as refrigerators or ovens, are
difficult to try withoutChap-8
making a major commitment.
The Diffusion Process - Yalew Gorfu 16
The Diffusion of Innovation

e) Observability (Or Communicability)

• 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 product that
is used in private, such as a new type of toothbrush.

• Similarly, a tangible product is promoted more easily than

an intangible product (i.e., a service). It is important to
recognize that each of these product attributes-relative
advantage, compatibility, complexity, trial ability, and
absorbability-depends on consumer perception.

Chap-8 The Diffusion Process - Yalew Gorfu 17 17

The Diffusion of Innovation
• A product that is perceived as having a strong
relative advantage, as fulfilling present needs and
values, as easy to try on a limited basis, and as
simple to understand and to see (and/or examine) is
more likely to be purchased than a product that is
not so perceived.

• A particular innovation may diffuse differently

throughout different cultures.

• For example, although shelf-stable milk (i.e., milk

that does not require refrigeration) has been
successfully sold for years in Europe, Americans
thus far have resisted the aseptic milk package.
Chap-8 The Diffusion Process - Yalew Gorfu 18
The Diffusion of Innovation

• Resistance to Innovation

• What makes some new products almost instant

successes, while others must struggle to achieve
consumer acceptance?

• To help answer such a question, a model of innovation

resistance has been developed that attempts to provide
further insights into the adoption and diffusion process.

• The product characteristics of an innovation help to

determine the extent of consumer resistance, which
increases when perceived relative advantage, perceived
compatibility,
Chap-8 The Diffusion Process - Yalew Gorfu 19
The Diffusion of Innovation

• Resistance to Innovation
• Trialability, and communicability are low, and
perceived complexity is high.
• Indeed, the term “innovation overload” is used to
describe the situation in which the increase in
information and options available to the consumer are
so great that they seriously impair decision-making.
• As a result, the consumer finds it difficult of make
comparisons among the available choices.
• In a world in which consumers often find themselves
with too little time and too much stress, the increasing
complexity of products wastes time and may delay the
diffusion of innovations.
Chap-8 The Diffusion Process - Yalew Gorfu 20
 Exposure to Innovation Exposure To Innovation

 Innovation Characteristics
 Consumer Characteristics
 Consumer-Dependent Propagati
 Psychological variables on
 Relative Advantage Mechanisms
 Perception  Types
 Compatibility
 Motivation Marketer-
 Perceived Risk controlled vs. No
 Personality
marketer - Controlled
 Complexity
 Value Orientation
Personal vs.
Impersonal
 Effect of Adoption of  Characteristics
 Beliefs

 Other innovations  Attitudes  Credibility

 Consumer-independent  Previous innovative  Clarity

 Trialability  Experience  Source similarity

 Divisibility  Demographics  Informativeness

 Reversibility  Age

Education
 Realization Innovation
Income

 Communicability
Resistance
Form of innovation

Is innovation Amenable Yes

Modification
To Modification?
yes No
Adoption Rejection

Chap-9 The Diffusion Process

Chap-8 The Diffusion Process - Yalew Gorfu 21 21
The Diffusion of Innovation

II)THE CHANNELS OF COMMUNICATION

 How quickly an innovation spreads through a market

depends to a great extent on communications
between the marketer and consumers, as well as
communication among consumers (e.g., word-of-
mouth communication).

 Of central concern is the uncovering of the relative

influence of impersonal sources (e.g., advertising and
editorial matter) and interpersonal sources
(salespeople and informal opinion leaders).
Chap-8 The Diffusion Process - Yalew Gorfu 22
The Diffusion of Innovation

III)THE SOCIAL SYSTEM

• The diffusion of a product usually takes place in a
social setting frequently referred to as a social
system.
• In the context of consumer behavior, the terms
market segment and target market are synonymous
with the term social system used in diffusion
research.
• A social system is a physical, social, or cultural
environment to which people belong and within
which they function.
• For example, for a new hybrid seed corn, the social
system might consist of all farmers in a number of
local communities.
Chap-8 The Diffusion Process - Yalew Gorfu 23
The Diffusion of Innovation

III)THE SOCIAL SYSTEM

 Consumer shows and exhibits are also growing in
popularity as a channel for assisting consumers in
making increasingly complex decisions.
 Specifically, research that examined boat show
attendees reactions to an innovative marine engine
control found that the act of attending the show
encouraged both the decision to purchase to purchase
at the show and an information search after the show.
 Additionally, it was found that early adopters engaged
in more at-show activities, obtained more detailed
product information, and attributed greater relative
advantage to the innovation, than did later adopters.
Chap-8 The Diffusion Process - Yalew Gorfu 24
The Diffusion of Innovation

III) THE SOCIAL SYSTEM

 According to one authority, the following characteristics
typify a modern social system:
 A positive attitude toward change
 An advanced technology and skilled labor force
 A general respect for education and science
 An emphasis on rational
and order social
relationships, rather than on emotional ones
 An outreach perspective, in which members of the system
frequently interact with outsiders, thus facilitating the
entrance of new ideas into the social system.
 A system in which members can readily see themselves in
quite different roles
Chap-8 The Diffusion Process - Yalew Gorfu 25
The Diffusion of Innovation

III) THE SOCIAL SYSTEM

 The orientations of a social system (either modern or
traditional) may be national in scope and may influence
members of an entire society or may exist at the local level
and influence only those who live in a specific community.

 For example, in recent years, the United States has

experienced a decline in the demand for beef.

 The growing interest in health and fitness throughout the

nation has created a climate in which beef is considered
too high in fat and caloric content

Chap-8 The Diffusion Process - Yalew Gorfu 26

The Diffusion of Innovation

• IV)TIME
• Time is the backbone of the diffusion process.
• It pervades the study of diffusion in
three distinct but interrelated ways:
1. The amount of purchase time,
2. The identification of adopter categories, and
3. The rate of adoption.

Chap-8 The Diffusion Process - Yalew Gorfu 27

The Diffusion of Innovation

1.The amount of Purchase Time

• Purchase time refers to the amount of time that
elapses between consumers’ initial awareness of a
new product or service and the point at which they
purchase or reject it.
• Purchase time is an important concept because the
average time a consumer takes to adopt a new
product is a predictor of the overall length of times
it will take for the new product to achieve
widespread adoption.

Chap-8 The Diffusion Process - Yalew Gorfu 28

The Diffusion of Innovation

Week precipitating situations/factors

0 current family room 19-inch TV set works fine but is 10 years old and cannot access number of the cable channel. The wife has recently
purchased a new sofa and new carpeting for the family room, and she and her husband have spoken about possibly having a cabinet built for
the wall opposed the sofa that would contain the TV. Stereo, tape deck, CD player, and VCR. Several friends have purchased large screen
TVs and have turned their family rooms into home entertainment centers couple decides, therefore, to also look at projection TVs

1-4 Decision process begins

Consumer senses a need to learn more about the features and availability of large screen tss, both those with conventional picture tubes (up to
35-inches in picture size) and projection TVs (40-to 52-inch picture sizes).

5-8 The TV is out of mind

The transmission in the older of the couple’s two cars, a 1987 Honda, begins to shift erratically. Because of the expense of the repair (the
transmission had to be replaced), the hunt for a new TV is put on the back burner.

9 Interest is retargeted
The wife reads an article in one of the magazines that she periodically buys at the supermarket about a family that purchased a zenith 52-inch
projection TV for their family room and created a home entertainment center. She shows the article to her husband.

10 Consumer Acquires A Mentor (Opinion Leader)

The husband asks a neighbor to serve as a mentor (opinion leader) with regard to home entertainment centers. He agrees.

Chap-8 The Diffusion Process - Yalew Gorfu 29

The Diffusion of Innovation
13-14 Obtaining more focused information about options
The toll-free 800 numbers of the three TV manufactures (which were featured in ads) are called to request
additional detailed information (brochures and booklets).

Period of self-study
After reading the brochures and discussing the pros and cons of the alternatives with their mentor (comparing
models with regard to features such as picture-in-picture and surround sound capability), a decision is made.
The 46—inch Sony is selected because of a magazine review that gave it very high marks in terms of its
screen brightness and sharpness, and because it offered.

Ordering the TV
Sunday’s newspaper contains an advertisement form a local appliance store chain stating that any projection
TV purchases within the next week can be paid for with 6 monthly payment, at no interest charge-the first
payment beginning 6 month after the TV is installed. The couple decides to drive to the store and talk to a
salesperson about the deal. When the salesperson agrees to lower the price of the Sony 46-inch set to match
the lowest price the couple had been quoted, they decide to make the purchase.
The TV arrives in the appliance dealer’s trunk and is installed in the couple’s family room.

Chap-8 The Diffusion Process - Yalew Gorfu 30

The Diffusion of Innovation
2) The Adopter Categories
• The concept of categories involves a
classification scheme that indicates where a
adopter
consumer stands in relation to other consumers in
terms of time (i.e., when he or she adopts a new
product).

• Five adopter categories are frequently cited in the

diffusion literature: innovators, early adopters, early
majority, late majority, and laggards.

• Table 10-2 describes each of these adopter categories

and estimates their relative proportions within their
total population that eventually adopts the new
product.
Chap-8 The Diffusion Process - Yalew Gorfu 31
 The Diffusion of Innovation

Adopter Relative percentage

Category Description Within the
population That
eventually Adopts

Innovators Venturesome-very eager to try new ideas: acceptable if risk is daring more 2.5%
cosmopolite social relationships: communicates with other innovator

Early Adopters Respect-more integrated into the local social system; the persons to check with 13.5
before adopting a new idea; category contains greatest number of opinion leaders;
are role models

Early Majority Deliberate-adopt new ideas just prior to the average time: seldom hold leadership 34.0
positions; deliberate for some time before adopting

Late Majority Skeptical-adopt new ideas just after the average time; adopting may be both an 34.0
economic necessity and a reaction to peer pressures; innovations approached
cautiously
Laggards Traditional-the last people to adopt an innovation most “localities” in outlook; 16.0
oriented to the past; suspicious of the new 100.0%

Chap-8 The Diffusion Process - Yalew Gorfu 32

 The Diffusion of Innovation

Figure 9.3: the sequence and proportion of adopter categories among

the population that eventually adopts.

Innovators Early Late

Adopters Majority Majority Laggards
2.5% 13.5% 34% 34% 16%

Percentage of Adopters by Category Sequence

Chap-8 The Diffusion Process - Yalew Gorfu 33

The Diffusion of Innovation

Instead of the classic five-category adopter

scheme, many consumer researchers have used
other classification schemes, most of which
consist of two or three categories that
compare innovators or early triers with later
triers or non-triers.
As we will see, this focus on the innovator or
early triers has produced several important
generalizations that have practical
significance for marketers planning the
introduction of new products.
Chap-8 The Diffusion Process - Yalew Gorfu 34
The Diffusion of Innovation

• Another classification scheme differentiates

between five different types of non-adopters:
– The unaware group, which consists of those
consumers who do not know about the
innovation or do not yet have enough information
to make a decision about it;
– Symbolic rejecters, who know of the product but
have decided it is not for them;
– Symbolic adopters, who believe the product
might be for them but have yet to try it; trial
adopters, who have tried the product but have
not made an actual purchase (or repurchase); and
– Trial rejecters, who have tried the product but
found it to be lacking.
Chap-8 The Diffusion Process - Yalew Gorfu 35
The Diffusion of Innovation

3. The Rate of
Adoption
The rate of adoption is concerned with how long it
takes a new product or service to be adopted by
members of a social system; that is , how quickly it
takes a new product to be accepted by those who will
ultimately adopt it.
The general view is that the rate of adoption for new
products is getting faster or shorter.
Fashion adoption is a form of diffusion, one in which
the rate of adoption is important.
Cyclical fashion trends or “fads” are extremely “fast,”
whereas “fashion classics” may be extremely slow or
“long” cycles.
Chap-8 The Diffusion Process - Yalew Gorfu 36
The Adoption Process

Chap-8 The Diffusion Process - Yalew Gorfu 37

The Adoption Process
• The Adoption Process
– The second major process in the diffusion of
innovation is adoption.
– The focus of this process is the stages through
which an individual consumer passes while
arriving at a decision to try or to continue using
or discontinue using a new product. (The
adoption process should not be confused with
adopter categories.)

Chap-8 The Diffusion Process - Yalew Gorfu 38

The Adoption Process
• Stages in the Adoption Process
• The stages in the adoption process can
be described as follows:
 Awareness.
– During the first stage of the adoption process,
consumers are exposed to the product innovation.
– This exposure is somewhat neutral, for they are not
yet sufficiently interested enough to search for
additional product information.
 Interest.
– When consumers develop an interest in the product
of product category they search for information
about how the innovation can benefit them.
Chap-8 The Diffusion Process - Yalew Gorfu 39
The Adoption Process
• Evaluation.
– Based on their information, consumers draw conclusions about the
innovation or determine whether further information is necessary.
The evaluation stage represents a kind of “metal trial” of the
product innovation. When the metal trial is unsatisfactory, the
product will be rejected.
• Trial.
– At this stage, consumers use the product on a limited basis. Their
experience with the product provides them the critical information
that they need to adopt or reject.
• Adoption (Rejection).
– Based on their trials and/or favorable evaluation, consumers decide
to use the product on a full, rather than limited basis, or they decide
to reject it.

Chap-8 The Diffusion Process - Yalew Gorfu 40

 The Diffusion of Innovation

The adoption process starts with awareness

(stag 1), which leads to interest (stage 2) and
evaluation (stage 3)
The product can then be rejected or tried
(stage 4) before or after purchase.
The trial provides direct experience (stage 6),
leading to subsequent rejection or adoption
(stage7).

Chap-8 The Diffusion Process - Yalew Gorfu 41

 The Diffusion of Innovation

Figure 9.5: A Proposed Modification to the Trial Adoption

Process
AWARENESS REJECTION
1

Rejection
INTEREST PURCHASE

Product
Direct
Evaluation
Product
Experience (Confirmat
(consequenc ion )
EVALUATION
es)
6
3
5
Adoption
7

TRIAL

Chap-8 The Diffusion Process - Yalew Gorfu 42

 The Diffusion of Innovation

The Innovation Decision Process

 To overcome the limitations discussed above, the traditional
adoption process model has been updated into a more general
decision-making model, the innovation decision process.
The five stages of the revised
adopting process model are:
 Knowledge. Consumer is exposed to the
innovation’s existence and gains some understanding of how it
functions.
 Persuasion (attitude formation). Consumer
forms favorable or unfavorable attitudes toward the innovation.
 Decision. Consumer puts the innovation into use.
 Implementation. Consumer puts the innovation into use.
 Confirmation. Consumer seeks reinforcement for the innovation
decision but may reverse this decision if exposed to conflicting
messages about the product.
Chap-8 The Diffusion Process - Yalew Gorfu 43
 The Diffusion of Innovation

Briefly, the model suggests that a number or prior

conditions (e.g., felt needs and social-system norms)
and characteristics of the decision-making unit (e.g.,
socioeconomic status and personality
influence the factors) of
product
receptioninnovation during information
the Knowledgeabout
stage.the
At the persuasion (attitude formation) stage,
the consumer is further influenced by
channels (sources) and
communications by
perceptions of the characteristics of the
innovation (its complexity,
advantage,compatibility, relative trial-ability and
absorbability).
Chap-8 The Diffusion Process - Yalew Gorfu 44
 The Diffusion of Innovation

Additional information received during the decision

stage enables the consumer to assess the innovation
and decide whether or adopt or reject it.
During the implementation stage, further
communication is received during the decision stage
enables the consumer to assess the innovation and
decide whether to adopt of reject it.
During the implementation stage, confirmation also
is influenced by communications sources.
It is at this stage that consumers evaluate their
purchase experiences, look for support for their
behavior, and decide to continue or discontinue
using the product.

Chap-8 The Diffusion Process - Yalew Gorfu 45

 The Diffusion of Innovation

The Adoption Process and Information Sources

 The adoption process provides a framework for determining which

types of information sources consumers find most important at
specific decision stages.
 For example, early subscribers to a computer-linked data service,
such as CompuServe, might first become aware of the service via
mass-media sours (magazines and radio publicity).
 Then, these early subscribes’ final pretrial information might be an
outcome of informal discussions with personal sources.
 The key point is that impersonal mass-media sources tend to be most
valuable for creating initial product awareness; as the purchase
decision progresses, however, the relative importance of these
sources declines while the relative importance of interpersonal
sources (friends, salespeople, and others) increases.

Chap-8 The Diffusion Process - Yalew Gorfu 46

end
Chap-8 The Diffusion Process - Yalew Gorfu 47
 The Diffusion of
Innovation

Discussion Questions
1. Describe how a manufacturer might use
knowledge of the product
characteristics following to acceptance of
pocket-sized cellular
speedtelephones:
up the
a) Relative advantage
b) Compatibility
c) Trialability
d) Operability
e) Observability

Chap-8 The Diffusion Process - Yalew Gorfu 48

 The Diffusion of Innovation

2. Toshiba has introduced a new laptop computer that

weight seven pounds, has a colors Screen, and a powerful
processor, into which a full-size desktop screen and
keyboard. Can be easily plugged. How can the company
use the diffusion-of innovations? Framework to develop
promotional, pricing, and distribution strategies targeted
to:
a) Innovators
b) Early adopters
c) Early majority
d) Late majority
e) Laggards

Chap-8 The Diffusion Process - Yalew Gorfu 49

 The Diffusion of Innovation

3. Is the curve, which describes the sequence and proportion of adopter

categories among the population of adopter categories among the
population similar in shape to the product life cycle curve? Explain your
answer. How would you see both Curves to develop a marketing strategy?
Compare and contrast the adoption and diffusion processes. Discuss each
process in terms of the market acceptance of fax machines.

3. Sony is introducing a 27- inch TV with a built-in VCR, a picture-in-picture

feature, and a feature that allows the viewer to simultaneously view frozen
frames of the last Signals received from twelve channels.
a) What recommendations would you make to Sony regarding the initial target
market for the new TV model?
b) How would like identify the innovators for this product?
c) Select three characteristics of consumer innovators. Explain how Sony might use each of these
characteristics to influence the adoption process and speed up the diffusion of the new product.
d) Should Sony follow a penetration or a skimming policy in introducing the product? Why?

Chap-8 The Diffusion Process - Yalew Gorfu 50

The Diffusion of Innovation

4. Identify a product, service, or style that recently was adopted by

you and/or some of your friends. Identify what type of
innovation it is and describe its diffusion process Up to this point
in time. What are the characteristics of people who adopted it
first? What type of people did not adopt it? What features of the
product, service, or style are Likely to determine its eventual
success or failure?
5. With the advancement of digital technology, some companies
plan to introduce interactive TV systems that will allow viewers
to select films from “video libraries” and view them on demand.
Among people you know, identify two who are likely to be
innovators for such a new service and construct consumer
profiles using the characteristics of consumer innovators.