Diffusion of innovation
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Diffusion of innovation

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    Diffusion of innovation Diffusion of innovation Presentation Transcript

    • CONSUMER BEHAVIOUR PRESENTATION ONDIFFUSION OF INNOVATION
    • What is Innovation???Transformation of an idea intosomething useful.There are two different kinds ofinnovations1.New things2.Development of new things.
    • Diffusion of Innovation• The diffusion of innovations theory seeks to explain how and why new ideas and practices are adopted, with timelines potentially spread out over long periods.• It is designed in two process:1. Diffusion2. Adoption
    • Stages in innovation• Innovators• Early adopters• Early majority• Late majority• Laggards.
    • The diffusion processThe innovation Various approaches have been taken toThe channels of define new product:communication 1.Firm oriented 2.Product orientedThe social system 3.Market oriented 4.Consumer orientedTime
    • The diffusion processThe innovation how quickly innovation spread depends on channel on communication. There are twoThe social system sources for communication:Time I. Impersonal II. Interpersonal
    • The diffusion processThe innovation It is a physical, social or cultural environment in which people belongThe channels of and within which theycommunication function: It can be of two type : I. Traditional social systemTime II. Modern social system
    • The diffusion processThe innovation Backbone of diffusion process. it pervades the study ofThe channels of diffusion in threecommunication distinct ways : 1. The amount ofThe social system purchase time. 2. The identification of adopter categories 3. The rate of adoption.
    • Product characteristics that influence diffusion• Relative advantage• Compatibility• Complexity• Trialability• Observability• Resistance to innovation
    • Stages in adoption
    • Adoption process Consumer in first expose to the productInterest innovation. Lacks in informationEvaluation about the product May only know theTrial name of product and its basic features.Adoption or Rejection
    • Adoption processAwareness Consumer is interested in product and search for additionalEvaluation information. He wants to knowTrial what is it, how it works and what itsAdoption or Rejection potentialities are.
    • Adoption processAwareness Consumer decides whether or not toInterest believe this product or service. Will it satisfy his needs andTrial requirements. Individual makes aAdoption or Rejection mental trial of the idea
    • Adoption processAwareness  Consumer uses the product on a limited basis.  During this stage theInterest individual determines the usefulness of the innovation and may search for furtherEvaluation information about it.  The trial stage is characterized by small-scale experimental use, when it’s possible.Adoption or Rejection
    • Adoption processAwareness If trail in favorable consumer decides toInterest use the product If unfavorable theEvaluation consumer decides to reject it.Trial
    • Consumer innovator• Small group of consumer who are the earliest purchase of the new product.• Earliest customer can be defined in may ways :First 2.5% of the social systemStatus of the new product investigationInnovativeness .
    • Opinion leader• Individual whose ideas and behavior serve as a model to others.• The innovator is an opinion leader.• When innovators are enthusiastic they might encourage other to buy it.• For products that do not generate much excitement consumer innovators might not be sufficiently motivated to advice it.
    • Market mavens• Special category of consumer influencer.• Posses a wide range of information about different type of products, retail outlet etc.• Like to shop and share shopping.• Not primarily concerned with price.
    • Personality traits• Personality traits that have been useful in differentiating consumer innovators and non innovators include:Consumer innovativenessDogmatismSocial characterNeed for uniquenessOptimum stimulation level
    • Change leaders• Also know as high-tech innovators.• Such individuals tend to embrace and popularize many of the innovation that are ultimately excepted by mane frame population such as computer, fax machine etc.• They fall into two distinct group:1. Younger group2. Middle-aged group
    • Technophiles• Those individuals who purchase technologically advance product soon after their market debut.• They tend to be technically curious people.• These consumers are typically younger, better educated and more affluent.
    • Managerial application• Marketing research• Development of new product• Reviews of product
    • References1. Consumer Behaviour by Leon G. Schiffman and Lesile Lazar Kanuk.2. Marketing Innovation by Davila Estein,Shelton3. Consumer Behavior in Indian perspective by Suja nair
    • Thank you