1. Entrepreneurial Marketing: An Effectual Approach
Prof. Dr. E.J. Nijssen,
Eindhoven University of Technology
Available from Routledge at:
Session 4: Understanding adoption and leading customers

2. Objectives Introduce the technology adoption life cycle
Diffusion and potential chasms
Understand customer adoption
Importance of leading customers
Understand customer reluctance to adoption of new products/services

3. Technology adoption life cycle
2.5%
13.5%
34.0%
16.0%
Innovators
Early adopters
Early majority
Late majority
Laggards
time
population
Skeptics
Conservatives
Pragmatists
Visionaries
Enthusiasts
Adpated from Rogers (2003); Moore (2006)

4. Difference between innovators and early adopters
Venturesome
Technology enthusiasts and not scared off by technical difficulties or deficiencies
Generally strategic rather than pure economical considerations drive behavior
Danger that behavior is only motivated by love for technology
More rational and thus more skeptical; more pragmatic
Looking closely at market trends and opinions of leaders, maverics
Focused on quality of the solution and economic gains

5. Populations’ homogeneity/heterogeneity explains diffusion pattern
Time
Penetration
levels
Slow diffusion
100% 0%
Rapid diffusion
Moderate diffusion
Delayed diffusion

6. Potential chasms Chasm Innovators Early adopterss Early majority
Late majority
Laggards
Time
Adapted from Moore (2006)

7. Roger’s model of adoption
Perceived innovation characteristics
–Relative advantage
–Compatibility
–Complexity
–Observability
–Trialability
(other factors, e.g., social influence, uncertainty)
Other factors
–Organization size
–Competitive environment
–Business network
Adoption process
Awareness
Consideration
Adoption decision
Adpated from Rogers (2003)

8. Extended adoption model of leading customers
Awareness
stage
(Information sources)
Reference customer info
Reliability of reference information
Fit reference − innovator context
New technology venture info
Expert sentiment and info
Consideration stage
Affordances
Relative advantage
Compatability
Complexity
Trailability
Observability
Liability of newness
Technology risk
Adoption decision
Innovator enthusiasm
New venture characteristics
Application characteristics
Adapted from Wouters and Nijssen (2011)

9. Who to target? Who benefits from your solution?
Is there a manifest or latent problem?
Can you create a new ideal/standard?

10. Generic model: Problem-solving behavior
Post-purchase behavior and re-evaluation
Search information on alternatives
Evaluate alternatives
Problem recognition
Purchase

11. Routinized vs. new task buying
Decision
Problem-solving behavior
New task
Modified buy
Straight rebuy
Extensive problem solving
Limited problem solving
Routinized problem solving
Manifest problem
Latent problem/ new standard

12. In organizations: Decision Making Units (DMUs)12
Often multiple people are involved in the decision to adopt a new product (stakeholders)
Roles include
gatekeeper
influence
decider
buyer
user
Determine who is sensitive to which arguments. In the end you will need to pursuade all stakeholders involved

13. Lead users
Lead user can help validate your assumtions about initial target market
Help to develop prototype
Help to iron out kinks of the design
Help interest and persude subsequent customers
Co-finance the effort, reducing risk and enhancing affordable loss

14. Hierarchy of innovation rejection by innovators
■ Changing usage pattern
■ Economic risk
….and
■ Functional risk
■ Social risk
■ Poor image
■ Conflict with norms and traditions
■ Risk of physical harm
Postponement Rejection Opposition
Increased level of resistance
Adapted from Keijnen, Lee and Wetzels (2009)

15. Lessons Customers differ in innovation propensity
Particularly interesting are venturesome innovators that are willing to co-develop
Understanding these customers is important; target the right person in the organization, while not neglecting other members of the DMU
Be aware of potential chasms; anticipate adjusting your marketing effort over time/over the different groups of the innovation life cycle
People may resist an innovation for different reasons