Innovations: Adoption, Resistance, Diffusion Chapter 15 Innovations: Adoption, Resistance, Diffusion
Learning Objectives~ Ch. 15 To access: Classifications of innovations, benefits offered & breadth Adoption of innovation, why consumers resist innovation, & timing of innovation Diffusion & its relationship to the product life cycle Factors affecting adoption, resistance, & diffusion
Adoption of, Resistance to & Diffusion of Innovations
Innovation “…an offering that is new to the marketplace… a product, service, or idea…consumers within a market segment perceive as new & that has an effect on existing consumption patterns.” Innovations can be new products or new services What is an example of a new service innovation that has changed your life for the better?
Characteristics of Innovations Degree of novelty Continuous Dynamically continuous Discontinuous Benefits offered Functional Aesthetic/hedonic Symbolic Breadth
Innovation Continuum Discontinuous Dynamically continuous Continuous Depends on degree of behavioral change What are examples of each part of the innovation continuum spectrum?
Adoption/Resistance to Innovations Resistance (e.g., retail resistance, market resistance) People are inherently resistant to change & to things they are uncertain of Adoption—hierarchy of effect High-effort Low-effort Timing of adoption decisions Characteristics of adopter groups Application of adopter group categories
High & Low Effort Hierarchy of Effects
Profile of Adopter Groups
Use-Diffusion Patterns
Marketing & Advertising Implications Demographics Social influence Personality Cultural values Media involvement Usage Event marketing Social media
Diffusion of Innovations “…reflects the behavior of the marketplace of consumers as a group…the percentage of the population that has adopted an innovation at a specific point in time.” Why do some goods diffuse quickly, while others lag?
Diffusion & PLC Pattern of adoption/diffusion curve S-Shaped = associated with risk Exponential = little risk, switching cost low Product life cycle stages (PLC) Introduction Growth Maturity Decline Can a product stay in one PLC cycle for eternity?
PLC Curve
S-Shaped Diffusion Curve
Exponential Diffusion Curve
PLC Pattern Fad Fashion Classic Note that PCL is at the product level, not the brand level
Innovation Characteristics Perceived Value Perceived Benefits Relative Advantage Use innovativeness Perceived Costs Risk/Uncertainty
Creating Advantage to Switch Communicate/ demonstrate advantage Price promotions to reduce perceived costs Provide incentives to switch
Consumer Learning & Diffusion The following impact diffusion rate: Compatibility Trialability Complexity
Social Relevance Observability—Others Using Innovation Social Value Socially desirable Speeds diffusion Legitimacy & Adaptability
Social System Characteristics: Modernity Homophily Physical Distance Opinion Leadership
Consequences of Innovation Consequences to consumers, businesses, & society May offer new relative advantages Negative consequences may arise Social Economic
Questions?