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Rate of adotion of an innovation

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RATE OF ADOPTION OF AN INNOVATION AND FACTORS AFFECTING RATE OF ADOPTION

RATE OF ADOPTION OF AN INNOVATION AND FACTORS AFFECTING RATE OF ADOPTION

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  • 1. 1
  • 2. G . Naveen Kumar 2013-11-193 2
  • 3. Rate of Adoption • Rate of adoption is the relative speed with which an innovation is adopted by members of a social system. • It is generally measured as the number of individuals who adopt a new idea in a specified period. • So the rate of adoption is a numerical indicator of the steepness of the adoption curve for an innovation 3
  • 4. Variables Determining the Rate of Adoption 4
  • 5. Perceived attributes of Innovation • Relative Advantage Relative advantage is the degree to which an innovation is perceived as being better than the idea it supersedes. • The degree of relative advantage is often expressed as economic profitability, social prestige, or other benefits. 5
  • 6. Economic Factors and Rate of Adoption • A new product may be based on a technological advance or advances that result in a reduced cost of production for the product, leading to a lower selling price to consumers. Example : VCR and Pocket Calculator . 6
  • 7. Status Aspects of Innovations • One motivation for many individuals to adopt an innovation is the desire to gain social status. • Gabriel Tarde (1903) observed that status seeking was a main reason for imitating the innovation behavior of others. • E.g. : clothing fashions and Harvestore in USA • Status motivations for adoption seem to be more important for innovators, early adopters, and early majority, and less important for the late majority and laggards. 7
  • 8. Effects of Incentives • Many change agencies award incentives or subsidies to clients to speed up the rate of adoption of innovations. • Incentives are direct or indirect payments of either cash or in kind. • Incentives have been paid to speed up the diffusion of innovations in a variety of fields 8
  • 9. l. Adopter versus diffuser incentives : • Incentives may be paid either directly to an adopter, or to another individual to persuade an adopter. • A diffuser incentive mainly increases the observability of an innovation, rather than its relative advantage. • E.g. : An illustration of a diffuser incentive is that paid to vasectomy canvassers in India 9
  • 10. 2. Individual versus system incentives • Payments may be made to individual adopters or to change agents, or to social systems to which they belong. • For example, the government family planning agency in Indonesia paid a community incentive to villages that achieved a high rate of adoption of contraceptives 10
  • 11. 3. Positive versus negative incentives • Most incentives are positive in that they reward a desired behavior change (like adoption of a new idea). • It is also possible to penalize an individual by imposing an unwanted penalty or by withdrawing some desiderata for not adopting an innovation. • Example : The Govt. of Singapore has announced that if any family had third child in their family they will not provide any benefits to that family 11
  • 12. 4. Monetary versus nonmonetary incentives • While incentives are often financial payments, they may also take the form of some commodity or object that is desired by the recipient. • Example : • For instance, in one state in India a sari with red triangles (the symbol for family planning in India) was awarded to each woman who was sterilized 12
  • 13. 5. Immediate versus delayed incentives • Most incentives are paid at the time of adoption, but others can only be awarded at a later time. • For example, some Third World nations provide a cost-free education to children of a couple who have a small family. 13
  • 14. : Incentives increase the rate of adoption of an innovation • Adopter incentives increase relative advantage, and diffuser incentives increase the observability with which an innovation is perceived. • Adopter incentives lead to adoption of an innovation by individuals different from those who would otherwise adopt. • Although incentives increase the quantity of adopters of an innovation, the quality of such adoption decisions may be relatively low, limiting the intended consequences of adoption 14
  • 15. Compatibility • Compatibility is the degree to which an innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters. • An innovation can be compatible or incompatible • (1) with sociocultural values and beliefs • (2) with previously introduced ideas • (3) with client needs for the innovation 15
  • 16. Compatibility with Values and Beliefs • An innovation's incompatibility with cultural values can block its adoption. • Examples : • Eating food with left hand • Miracle varieties of rice that developed from IRRI in 1960 gave attention to yields only and less attention to taste. 16
  • 17. Compatibility with Previously Introduced Ideas • Compatibility of an innovation with a preceding idea can either speed up or retard its rate of adoption. • Example : • Usage of tractors in Punjab in early 1960’s. 17
  • 18. Compatibility with Needs • One dimension of the compatibility of an innovation is the degree to which it meets a felt need. • Change agents seek to determine the needs of their clients, and then to recommend innovations that fulfill these needs. • When felt needs are met a faster rate of adotion usually occurs. 18
  • 19. Complexity • Complexity is the degree to which an innovation is perceived as relatively difficult to understand and use. • The complexity of an innovation, as perceived by members of a social system, is negatively related to its rate of adoption. Example: Usage of home computers in USA in early advancement . 19
  • 20. Trialability • Trialability is the degree to which an innovation may be experimented with on a limited basis. • New ideas that can be tried on the installment plan are generally adopted more rapidly than innovations that are not divisible. • The trialability of an innovation, as perceived by members of a social system, is positively related to its rate of adoption. 20
  • 21. Observability • Observability is the degree to which the results of an innovation are visible to others. • The observability of an innovation, as perceived by members of a social system, is positively related to its rate of adoption. • Example : • Hardware and Software of a computer in which hardware is easily observable where as advancements in software are not observable hence it has slow rates of adoption. 21
  • 22. communication channels • The communication channels used to diffuse an innovation also may influence the innovation's rate of adoption. • The relationship between communication channels and the attributes of the innovation often interact to slow down or speed up the rate of adoption. • If an inappropriate communication channel were used, such as mass media channels for complex new ideas, a slower rate of adoption resulted 22
  • 23. Nature of the social system • Norms of the system and the degree to which the communication network structure is highly interconnected, also affects an innovation's rate of adoption. 23
  • 24. Extent of change agents' promotion efforts • The relationship between rate of adoption and change agents' efforts, however, may not be direct and linear. • The greatest response to change agent effort occurs when opinion leaders adopt, which usually occurs somewhere between 3 and 16 percent adoption in most systems. • The innovation will then continue to spread with little promotion by change agents, after a critical mass of adopters is reached. 24
  • 25. 25 Forget yesterday - it has already forgotten you. Don't sweat tomorrow - you haven't even met. Instead, open your eyes and your heart to a truly precious gift - today. Steve Maraboli