1. Diffusion of Innovation Alex Andujar

2. Types of Innovations Continuous Innovation Simple changing or improving of an already existing product where the adopter still uses the product in the same fashion as they had before. Example: Automobile Industry. Dynamically Continuous Innovation Innovation can either be a creation of a new product or a radical change to an existing one. Consumption patterns are slightly altered. Example: Compact Discs. Discontinuous Innovation Completely new product in the market (“big idea” innovation). Because the product has never been seen before, there are total changes to consumer buying and using patterns.

3. Diffusion of Innovation Diffusion of innovation theory was formalized by Everett Rogers in a 1962 book called Diffusion of Innovations. Rogers stated that adopters of any new innovation or idea could be categorized as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards (16%), based on a bell curve. Each adopter's willingness and ability to adopt an innovation would depend on their awareness, interest, evaluation, trial, and adoption.

4.  Innovators - venturesome, educated, multiple info sources, greater propensity to take risk  Early Adopters - social leaders, popular, educated  Early Majority - calculated, many informal social contacts  Late Majority - skeptical, traditional, lower socio- economic status  Laggards - neighbors and friends are main information sources, fear of debt Characteristics of Adopter Categories

5. Bell Curve

6. Rogers theorized that innovations would spread through society in an S-Curve. After about 10-25% of system members adopt an innovation, relatively rapid adoption by the remaining members and then a period in which the laggards finally adopt. In other words, as the early adopters select the technology first, majority follows, until a technology or innovation is common.

8. 5-Step Process of Innovation-Decision 1. Knowledge – person becomes aware of an innovation and has some idea of how it functions 2. Persuasion – person forms favorable or unfavorable attitudes toward the innovation 3. Decision – person engages in activities that lead to a choice to adopt or reject the innovation 4. Implementation – person puts an innovation to use 5. Confirmation – person evaluates the results of an innovation-decision already made

9. Affecting Diffusion Use Mass Media to spread knowledge of innovation to a large audience rapidly Affect opinion leader attitudes  Leaders communicate their approval or disapproval of an innovation to the rest of the social system  Social system trusts the decisions of opinion leaders

10. Targeting Opinion Leaders Targeting strategies are dependent on the type of social system: Heterophilous  Innovation adoption will be a domino effect  Concentrate on most elite and innovative opinion leaders  Social system will adopt with enthusiasm and eagerness Homophilous  Innovations are less likely to trickle down  Pre-existing norms control attitude  Opinion leaders that adopt innovations are regarded as suspicious, therefore leaders usually avoid adopting innovations in hopes of protecting their leadership  Target wider group of opinion leaders, including some of the less elite  Communicate to leaders an argument that innovation is accentuates the system norms

11. Questions?