1. Buyer Behavior Diffusion of Innovation

2. Definition of Opinion Leadership The process by which one person, the opinion leader, informally influences the actions or attitudes of others, who may be opinion seekers or merely opinion recipients. THEY ARE EFFECTIVE BECAUSE THEY:  Are credible  Provide positive and negative product information  Provide both information and advice  Are specialized and category-specific  Are both providers and recipients of information

3. Opinion Leadership Measurement Self-designating method Sociometric method Key informant method Objective method Combination methods

4. What Makes an Opinion Leader? Knowledge and interest Consumer innovativeness Media habits Personal characteristics Personality traits Social class Demographic factors

5. Profile of Opinion Leaders Innovativeness Willingness to talk Self-confidence Gregariousness Cognitive differentiation Generalized Attributes Across Categories

6. Profile of Opinion Leaders Interest Knowledge Special-interest media exposure Same age Same social status Social exposure outside group Category-Specific Attributes

7. One-Step Communications Flow C C C C C C C C C C C C C C C C C C

8. Two-Step Communications Flow Opinion Leader C C C C C C C C C C C C C C C C C C

9. Multi-Step Communications Flow OL C C C C C C C C C C C C C C C C C C

10. Interpersonal Communication Categories High on both opinion leadership and opinion seeking. Opinion Seeking Scores HighLow Opinion Leadership Low High Socially Integrated Socially Integrated Socially Integrated

11. Interpersonal Communication Categories High on opinion leadership, low on opinion seeking. Socially Integrated Socially Integrated Socially Independent Socially Independent Opinion Seeking Scores HighLow Opinion Leadership Low High Socially Independent

12. Interpersonal Communication Categories Low on opinion leadership, high on opinion seeking. Socially Integrated Socially Integrated Socially Dependent Socially Dependent Socially Independent Socially Independent Opinion Seeking Scores HighLow Opinion Leadership Low High Socially Dependent

13. Interpersonal Communication Categories Low on both opinion leadership and opinion seeking. Socially Integrated Socially Integrated Socially Dependent Socially Dependent Socially Isolated Socially Isolated Socially Independent Socially Independent Opinion Seeking Scores HighLow Opinion Leadership Low High Socially Isolated

14. Definitions of “Innovation” Firm-Oriented Definitions Based on newness to the firm. Product-Oriented Definitions Based on new product attributes. Market-Oriented Definitions Based on proportion who have purchased. Consumer-Oriented Definition Based on consumer judgment of newness.

15. Telephone-Related Innovations Answering machine Call forwarding Call waiting Voice mail Caller ID Banking by phone Call prompting Answering machine Call forwarding Call waiting Voice mail Caller ID Banking by phone Call prompting Hold button Line-in-use indicator Redial button Auto dialing feature Touch-tone service 800 numbers 900 numbers Hold button Line-in-use indicator Redial button Auto dialing feature Touch-tone service 800 numbers 900 numbers Nationwide paging Stock market quotes Sports scores Two-way paging Pager watch Nationwide paging Stock market quotes Sports scores Two-way paging Pager watch Silent alert Message displays Built-in alarm clock Fashion colors Silent alert Message displays Built-in alarm clock Fashion colors Fax modem Mobile fax machines Home office systems (fax, copier, comp., etc.) Fax modem Mobile fax machines Home office systems (fax, copier, comp., etc.) Plain paper fax Speed dialing Delayed send Copy function Plain paper fax Speed dialing Delayed send Copy function TelephonePagerFax Machine DiscontinuousDynamically ContinuousContinuous

16. Influences on Diffusion Relative advantage Compatibility Complexity Trialability Observability

17. Influences on Diffusion Consumer-Dependent Relative advantage Compatibility Perceived risk Complexity Effect on other innovations Consumer-Independent Trialability Divisibility Reversibility Realization Communicability Form of innovation Innovation Characteristics

18. Influences on Diffusion Psychological Variables Perception Motivation Personality Value orientation Beliefs Attitudes Previous experience Demographics Age Education Income Consumer Characteristics

19. Influences on Diffusion Types Marketer-controlled versus nonmarket- controlled Personal versus impersonal Characteristics Credibility Clarity Source similarity Informativeness Propagation Mechanisms

20. The Diffusion Curve

21. 2.5% Innovators Innovators — 2.5% — Venturesome Very eager to try new ideas; acceptable if risk is daring; more cosmopolite social relationship; communicates with other innovators

22. The Diffusion Curve 2.5%13.5% Innovators Early Adopters Early Adopters — 13.5% — Respect More integrated into local social system; the persons to check with before adopting a new idea; greatest number of opinion leaders; role models

23. The Diffusion Curve 2.5%13.5%34% Innovators Early Adopters Early Majority Early Majority — 34% — Deliberate Adopt new ideas just prior to the average time; seldom hold leadership positions; deliberate for some time before purchasing

24. The Diffusion Curve 2.5%13.5%34% Innovators Early Adopters Late Majority Early Majority Late Majority — 34% — Skeptical Adopt new ideas just after the average time; adoption may be economic necessity and from peer pressure; approach innovation cautiously

25. The Diffusion Curve 2.5%13.5%34%16%34% Innovators Early Adopters Late Majority Laggards Early Majority Laggards — 16% — Traditional Last people to adopt an innovation; most parochial in outlook; oriented toward the past; suspicious of the new

26. Innovation Adoption Process AWARENESS — Consumers learns the brand name and product attributes. INTEREST — Consumers relate the product benefits to their own needs. EVALUATION — Consumers compare the goods with existing alternatives. TRIAL — Consumers obtain direct or vicarious product experience. ADOPITON — Consumers choose the innovation as a permanent solution.

27. Innovation Decision Process KNOWLEDGE — Exposure and some knowledge of function. PERSUASION — Favorable or unfavorable attitudes are formed. DECISION — Choice to adopt or to reject innovation. IMPLEMENTATION — Innovation is put into use by consumer. CONFIRMATION — Seeks reinforcement of decision or possible reversal.

28. Relative Information Importance Importance High Low Personal and interpersonal sources Impersonal mass-media sources Awareness Interest Evaluation Trial Adoption