1. Copyright © 2006 Pearson Education Canada Inc. Chapter 13 Consumer Influence and the Diffusion of Innovations Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

2. Copyright © 2006 Pearson Education Canada Inc. 13-2 Opinion Leadership The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients

3. Copyright © 2006 Pearson Education Canada Inc. 13-3 What is Opinion Leadership? Opinion Leader Opinion Receiver Opinion Seeker

4. Copyright © 2006 Pearson Education Canada Inc. 13-4 Special Issues Opinion leaders are four times more likely to be asked about political issues, three times more likely to be asked about computers or investments, and twice as likely to be asked about restaurants Information seekers seek a “strong-tie” source when they know little about a topic, and “weak-tie” sources when they have some knowledge

5. Copyright © 2006 Pearson Education Canada Inc. 13-5 Purchase Pals and Surrogate Buyers Purchase Pals –Information sources who accompany a consumer on a shopping trip Surrogate Buyers –Professional buyers who help consumers with their purchases

6. Copyright © 2006 Pearson Education Canada Inc. 13-6 (continued)

7. Copyright © 2006 Pearson Education Canada Inc. 13-7 Figure 13-1 (continued)

8. Copyright © 2006 Pearson Education Canada Inc. 13-8 Market Maven Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.

9. Copyright © 2006 Pearson Education Canada Inc. 13-9 Motivations Behind Opinion Leadership The Needs of Opinion Leaders –To reduce their own post-purchase dissonance –For tangential personal benefits –Because of high levels of product involvement –Because of message involvement »continued

10. Copyright © 2006 Pearson Education Canada Inc. 13-10 Motivations Behind Opinion Leadership Motivations of Opinion Seekers –To obtain new product or new usage information –To reduce their risk by getting knowledge –To reduce search time –To receive the approval of the opinion leader

11. Copyright © 2006 Pearson Education Canada Inc. 13-11 Reasons for the Effectiveness of Opinion Leadership Credibility Positive and Negative Product Information Information and Advice Opinion Leadership Is Category-Specific Opinion Leadership Is a Two-way Street

12. Copyright © 2006 Pearson Education Canada Inc. 13-12

13. Copyright © 2006 Pearson Education Canada Inc. 13-13

14. Copyright © 2006 Pearson Education Canada Inc. 13-14

15. Copyright © 2006 Pearson Education Canada Inc. 13-15 The Interpersonal Flow of Communication Two-Step Flow –A communication model that portrays opinion leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information. Multi-step Flow –A revision of the traditional two-step theory that shows multiple communication flows

16. Copyright © 2006 Pearson Education Canada Inc. 13-16

17. Copyright © 2006 Pearson Education Canada Inc. 13-17

18. Copyright © 2006 Pearson Education Canada Inc. 13-18 Measuring Opinion Leadership SELF-DESIGNATING METHOD “Do you influence other people in their selection of products?” Each respondent is asked a series of questions to determine the degree to which he or she perceives himself or herself to be an opinion leader. OPINION LEADERSHIP MEASUREMENT METHOD SAMPLE QUESTIONS ASKED DESCRIPTION OF METHOD SOCIOMETRIC METHOD Members of a social system are asked to identify to whom they give advice and to whom they go for advice. “Whom do you ask?”“Who asks you for info about that product category?”

19. Copyright © 2006 Pearson Education Canada Inc. 13-19 Measuring Opinion Leadership - continued OPINION LEADERSHIP MEASUREMENT METHOD SAMPLE QUESTIONS ASKED DESCRIPTION OF METHOD KEY INFORMANT METHOD “Who are the most influential people in the group?” Carefully selected key informants in a social system are asked to designate opinion leaders. Artificially places individuals in a position to act as opinion leaders and measures results of their efforts. “Have you tried the product? OBJECTIVE METHOD

20. Copyright © 2006 Pearson Education Canada Inc. 13-20 Opinion Leadership and Marketing Strategy Identify and provide samples to opinion leaders Design programs to stimulate opinion leadership Develop ads simulating opinion leadership Create opinion leaders Control negative word-of-mouth communication

21. Copyright © 2006 Pearson Education Canada Inc. 13-21 Diffusion Process The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.

22. Copyright © 2006 Pearson Education Canada Inc. 13-22 Adoption Process The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.

23. Copyright © 2006 Pearson Education Canada Inc. 13-23 Defining Innovations Firm-oriented definitions Product-oriented definitions Market-oriented definitions Consumer-oriented definitions

24. Copyright © 2006 Pearson Education Canada Inc. 13-24 Product-Oriented Definitions Continuous Innovation Dynamically Continuous Innovation Discontinuous Innovation

25. Copyright © 2006 Pearson Education Canada Inc. 13-25 Factors That Affect the Diffusion of Innovations The Innovation The Channels of Communication The Social System Time

26. Copyright © 2006 Pearson Education Canada Inc. 13-26 Product Characteristics That Influence Diffusion Relative Advantage Compatibility Complexity Trialability Observability Felt Need Risk

27. Copyright © 2006 Pearson Education Canada Inc. 13-27 Social System and Diffusion Does the target market have: –A positive attitude towards change? –Technological skill? –A general respect for education and science? –A focus on rational and ordered social relationship? –An outreach perspective? –The ability to accept different roles?

28. Copyright © 2006 Pearson Education Canada Inc. 13-28 Time and Diffusion Purchase Time Adopter Categories Rate of Adoption

29. Copyright © 2006 Pearson Education Canada Inc. 13-29 Adopter Categories A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.

30. Copyright © 2006 Pearson Education Canada Inc. 13-30

31. Copyright © 2006 Pearson Education Canada Inc. 13-31 Innovators: Description 2.5% of population Venturesome Very eager to try new ideas Acceptable if risk is daring More cosmopolite social relationships Communicates with other innovators

32. Copyright © 2006 Pearson Education Canada Inc. 13-32 Early Adopters: Description 13.5% of population Respected More integrated into the local social system The persons to check with before adopting a new idea Category contains greatest number of opinion leaders Are role models

33. Copyright © 2006 Pearson Education Canada Inc. 13-33 Early Majority: Description 34% of population Deliberate Adopt new ideas just prior to the average time Seldom hold leadership positions Deliberate for some time before adopting

34. Copyright © 2006 Pearson Education Canada Inc. 13-34 Late Majority: Description 34% of population Skeptical Adopt new ideas just after the average time Adopting may be both an economic necessity and a reaction to peer pressures Innovations approached cautiously

35. Copyright © 2006 Pearson Education Canada Inc. 13-35 Laggards: Description 16% of population Traditional The last people to adopt an innovation Most “localite” in outlook Oriented to the past Suspicious of the new

36. Copyright © 2006 Pearson Education Canada Inc. 13-36 Rate of Adoption Insert Figure 13-16 A, B and C as small graphs; if that is not possible, then have one or two of them.

37. Copyright © 2006 Pearson Education Canada Inc. 13-37

38. Copyright © 2006 Pearson Education Canada Inc. 13-38

39. Copyright © 2006 Pearson Education Canada Inc. 13-39 The Profile of a Consumer Innovator Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits Purchase and consumption characteristics Media Habits Social Characteristics Demographic Characteristics Are There Generalized Consumer Innovators?

40. Copyright © 2006 Pearson Education Canada Inc. 13-40 Diffusion Process and Marketing Strategy Identify diffusion inhibitors and find ways to compensate for these Identify innovators and early adopters and cater to them Move consumers from awareness to adoption Make effective use of word-of-mouth communications