1. Innovations: Adoption, Resistance, Diffusion
Chapter 15
Innovations: Adoption, Resistance, Diffusion

2. 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

3. Adoption of, Resistance to & Diffusion of Innovations

4. 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?

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

6. Innovation Continuum Discontinuous Dynamically continuous Continuous
Depends on degree of behavioral change
What are examples of each part of the innovation continuum spectrum?

7. 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

8. High & Low Effort Hierarchy of Effects

9. Profile of Adopter Groups

10. Use-Diffusion Patterns

11. Marketing & Advertising Implications
Demographics
Social influence
Personality
Cultural values
Media involvement
Usage
Event marketing
Social media

12. 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?

13. 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?

14. PLC Curve

15. S-Shaped Diffusion Curve

16. Exponential Diffusion Curve

17. PLC Pattern Fad Fashion Classic
Note that PCL is at the product level, not the brand level

18. Innovation Characteristics
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 & Diffusion
The following impact diffusion rate:
Compatibility
Trialability
Complexity

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

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

23. Consequences of Innovation
Consequences to consumers, businesses, & society
May offer new relative advantages
Negative consequences may arise
Social
Economic

24. Questions?