1. Adoption of, Resistance to, and Diffusion of Innovations
Chapter 16
Adoption of, Resistance to, and Diffusion of Innovations

2. Key Concepts
Classifications of innovations, benefits offered and breadth.
Adoption of innovation, why resist innovation, and timing of innovation.
Diffusion and its relationship to the product life cycle.
Factors affecting adoption, resistance, and diffusion.

3. Chapter Overview: Adoption of, Resistance to, and Diffusion of Innovations (Exhibit 16.1)

4. Innovation
“…an offering that is new to the marketplace… a product, service, or idea…consumers within a market segment perceive as new and that has an effect on existing consumption patterns.”

5. Characteristics of Innovations
Degree of novelty
Continuous
Dynamically continuous
Discontinuous
Benefits offered
Functional
Aesthetic/hedonic
Symbolic
Breadth

6. Innovation Continuum (Exhibit 16.2)

7. Adoption/Resistance to Innovations
Adoption—hierarchy of effect
High-effort
Low-effort
Timing of adoption decisions
Characteristics of adopter groups
Application of adopter group categories

8. Adoption Decision Process (Exhibit 16.5)

9. Profile of Adopter Groups (Exhibit 16.6)

10. Use-Diffusion Patterns for Home Technology Innovations (Exhibit 16.7)

11. Marketing Implications
Demographics
Social influence
Personality
Cultural values
Media involvement
Usage

12. Diffusion
“…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.”

13. Diffusion Through a Market
Pattern of adoption/diffusion curve
S-Shaped = associated with risk
Exponential = little risk, switching cost low
Product life cycle stages
Introduction
Growth
Maturity
Decline

14. S-Shaped Diffusion Curve (Exhibit 16.9a)

15. Exponential Diffusion Curve (Exhibit 16.9b)

16. Product Life Cycle Curve (Exhibit 16.9c)

17. Product Life Cycle Pattern
Fad
Fashion
Classic

18. Characteristics of Innovation
Perceived Value
Perceived Benefits
Relative Advantage
Use innovativeness
Perceived Costs
Risk/Uncertainty

19. Creating Advantage to Switch
Communicate/ demonstrate advantage
Price promotions to reduce perceived costs
Provide incentives to switch

20. Consumer Learning Requirements and Diffusion
Compatibility
Trialability
Complexity

21. Social Relevance Observability—Others Using Innovation Social Value
Socially desirable
Speeds diffusion
Legitimacy and Adaptability

22. Characteristics of Social System
Modernity
Homophily
Physical Distance
Opinion Leadership

23. Consequences of Innovation
May offer new relative advantages
Negative consequences may arise
Social
Economic