D I F F U S I O N O F I N N OVAT I O N

A N D A D A P TAT I O N

Introduction
What is new product and services?
- Revolutionary new
or
- Minor product variation
For Consumer,
- Increased opportunity to satisfy personal social and environmental
needs and add to their quality of life.
For Marketers ,
- Important mechanism for keeping the firm competitive, profitable and
growing.

DIFFUSION AND ADOPTION OF

INNOVATION
Diffusion is a macro process concerned with the spread of a

new product from its source to the consuming public.

Adoption is a micro process that focuses on the stages through

which an individual consumer passes when deciding to accept

or reject a new product.

Diffusion
Process
Innovation
Channel of
Communication

Social System

Time

The diffusion process

Various
The
innovation
approaches
have been
The channels
taken to
of
communication define new
product:
The social
1.Firm
system
oriented
Time
2.Product

The diffusion process

The innovation
The channels of
communication
The social system
Time

how quickly
innovation
spread
depends on
channel on
communication
.
There are two
sources for
communication
:

The diffusion process

The innovation It is a
The channels
of
communication
The social
system
Time

physical,
social or
cultural
environment
in which
people belong
and within
which they
function:

The diffusion process

The innovation Backbone of
diffusion
The channels
process.
of
it pervades
communication the study of
diffusion in
The social
three distinct
system
ways :
Time
1.The amount
of purchase

Product characteristics that

influence diffusion

Relative advantage

Compatibility

Complexity

Trialability

Observability

Resistance to innovation

Adoption

Adoption is a major step in the diffusion of

innovation

Its is how consumer decides whether or not

to try and adopt innovative product/services.

Adopter categories

Innovators

Early adopters

Early majority

Late majority

Laggards

Product characteristics that influence diffusion

Characteristics

Definition

Complexity

Degree to which a new product is difficult to

understand or use
E.g. Disposable razors

Trialability

Degree to which a new product is capable of being

tried on a limited basis
E.g. Free trial software

Observability

Degree to which a products attributes can be

observed, imagined to potential customers.
E.g. Laptop

STAGES OF ADOPTION PROCESS

AWARNESS

Profile of Consumer Innovator

Consumer Innovator
Relatively small group of consumers who are the earliest

purchasers of a new product.

Who has high levels of the education, social interaction,

opinion leadership, optimism, cosmopolitanism and social

status compared to those in the population who adopt later.

PERSONALITY
Dogmatism
Need for uniqueness
Social character
Perceived risk
Venturesomeness

PURCHASE AND CONSUMPTION

TRAITS
Brand loyalty
Usage

Media Habits

Total magazine exposure

Special Interest magazines

Television

Social Characteristics
Social integration
Social striving (eg- Social, physical, and occupational

mobility)

Group memberships

References
1.

2.
3.

Consumer Behaviour by Leon

G. Schiffman and Lesile Lazar
Kanuk.
Marketing Innovation by
Davila Estein,Shelton
Consumer Behavior in Indian
perspective by Suja nair

THANK YOU.