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Farmers’ Resistance to New
Product
John Mano Raj
Innovation : Inevitable
• Market rewards companies that have a
successful innovation track record.
• Innovation is anything that is capable of
bringing new value to an organisation.
• Innovation is different from that of
renovation.
John Mano Raj
Innovation and Renovation
• Renovation seems to be less glamorous
• Innovation requires both capacity and
capability
• Innovation requires new competencies
• Renovation also adds value but lesser
than innovation John Mano Raj
• Need to continuously innovate because
the natural tendency of all system to
atrophy over time.
• Innovation is the only way to keep the
system relevant and differentiated.
• Over time, consumers’ need changes,
markets evolve and competitors create
‘sameness’.
John Mano Raj
R&D
John Mano Raj
Innovation resistance affects
the timing of adoption
John Mano Raj
John Mano Raj
Innovation may conflict with
farmers’ prior belief structure
John Mano Raj
Highly innovative products may offer
consumers greater benefits than
incrementally new products, yet they
have a higher failure rate
John Mano Raj
Because , incongruity with
consumer expectations
• Recent research supports the idea of
the problematic success of extremely
different new products
• consumers were four times more likely
to choose an incrementally new product
over a really new one
John Mano Raj
In fact, for consumers who reported an
intention to buy a new product (60% of
the original 2,700 participants), an
actual purchase was twice as likely for
incrementally new as compared to really
new products.
Overall, research suggests that the more
extreme the innovation, the more likely a
new product is to fail.
John Mano Raj
Reasons for Resistance
• habit toward an existing practice or
behavior.
• perceived risks associated with
innovation
John Mano Raj
According to Ram and Sheth (1989)
risk may be:
• physical and cause harm to a person or his
property
• economic, representing a wrong decision to
adopt an innovation instead of waiting for a
better or more inexpensive version
• functional, referring to the performance and
ability to function properly
• social, referring to social exclusion and fear
of being seen in a negative light by others.
John Mano Raj
John Mano Raj
Resistance to Innovation
1. Functional Barrier
• Product usage, risk associated with
usage, usage pattern, product value
• Risk barrier : Physical risk, economic risk,
functional risk, social risk, etc.
2. Psychological barrier
• Tradition barrier
• Norms of farmers
John Mano Raj
Low intensity tapping
• Gives high latex yield with long term
stability. Prevents panel dryness. Organic
nutrients in Motex enchances physiology
and metabolism of latex cells. Life span of
tree increases with low intensity tapping
systems. A patented product imported
from chemigro Malaysia and marketed by
BIOTIC LIFE SCIENCES (INDIA) PVT.
LTD.
John Mano Raj
Coffee Ripening Hormone
Description: It is termed as
Ripening Hormone preferably
used for artificial ripening.
Product Name: ETHEFOL
Technical Name: Ethephon
39 % S.L. (Plant Growth
Regulator)
John Mano Raj
To get uniform ripening of
berries.
1. Robusta – Spray 100
ppm sl 10-15 % berries are
ripe
2. Arabica - Spray 200
ppm sl 10-15 % berries are
ripe.
John Mano Raj
RUBBER ( ETHEPHON 10% SL )
For stimulating latex flow in Rubber,
without affecting economic life of the
trees. Scrap the bark about five
centimeters below the tapping groove
and apply Ethephon with a painting
brush. Application during heavy rain
should be avoided. Four applications
in a year during the month of March,
August, September & November.
Molecular Formula C2H6CIO3P
Mode of Action
ETHEFOL (ETHYLENE) is actually a natural product of ripened fruit.
Abscission: Ethylene is an accelerator of abscission. It Causes abscission
through the enhancement of activation Of cell wall destroying enzyme. That is
why Ethylene is Called as Phytogerontological hormone.
Ripening: Ethylene when applied as a foliar spray Accelerates the maturity and
induces uniform ripening in Pineapple, Banana, Fig, Tomato etc.
Degreening of Citrus and Banana: Ethylene it increases the activity of enzyme
Chlorophyllase enzyme that degrades Chlorophyll. This is the reason for de-
greening phenomenon.
Application
Ethefol is used in many crops to bring desired effects. Most preferably it is being
used for uniform ripening in Coffee, Mango, Tomato etc. as well as flower
induction in Pineapple and Sex modification in Cucumber.
Compatibility It is compatible with commonly used pesticides.
Phytotoxicity Phytotoxicity has not been reported, when used as recommended.
Available Packs 100 ml, 500 ml and 1 Liter
Warranty
Since the use of the product is beyond our control, we do not assume any
responsibility other than the uniform quality of the product.
John Mano Raj
Cotton farmers ransack
Mahyco office
• Cotton farmers who were staging a protest against Mahyco for
allegedly selling spurious seeds barged into the company premises
near Ranebennur in Haveri district on Thursday, ransacked the
office and destroyed a few documents.
• They were demanding compensation of at least Rs. 25,000 an acre
for the loss they suffered after sowing Bt cotton seeds sold by the
company. The incident occurred at Mahyco Seed Company, located
off national highway 4, near Kamadod village.
• According to eyewitnesses, farmers threw stones, damaged the
company’s name board and gates, ransacked security, accounts,
and quality control sections, and damaged furniture. They also
damaged a portion of the compound wall.
John Mano Raj
Failure of farm mechanization
John Mano Raj
Innovation Resistance factors
• Perceived Innovation Characteristics.
• Consumer Characteristics.
• Characteristics of Propagation
Mechanisms
John Mano Raj
Model of Innovation Resistance
John Mano Raj
Perceived Innovation
Characteristics
John Mano Raj
• The Relative Advantage of an innovation
may be in the form of economic gain or in
the form of cost savings
• The higher the perceived relative
disadvantage (or lower the perceived
relative advantage). the higher the
innovation resistance.
John Mano Raj
• The lower the perceived compatibility (or higher
the pervasiveness) of an innovation, the higher
the innovation resistance
• Compatibility of an innovation is "...the degree to
which an innovation is perceived as consistent
with the existing values. past experiences and
needs
• Pervasiveness of an innovation is the degree to
which it relates to and requires changes or
adjustments on the part of the consumer
John Mano Raj
The higher the levels of any of the perceived
risk components (physical, functional,
psychological or social), the higher the
innovation resistance
John Mano Raj
• The lower the trialability of an innovation,
the higher the innovation resistance
• Trialability of an innovation relates to how
easily the innovation can be tried by the
consumer prior to adoption, and impacts
on the perceived risk associated with the
innovation
John Mano Raj
• The lower the divisibility of an innovation,
the higher the innovation resistance
• Divisibility measures whether an
innovation can be attempted in stages.
John Mano Raj
• The lower the communicability of an
innovation, the higher the innovation
resistance
• Communicability of an innovation is the
ease and effectiveness with which the
results of an innovation can be
disseminated to others
John Mano Raj
• The lower the reversibility of an
innovation, the higher the innovation
resistance
John Mano Raj
• The lower the realization of an innovation,
the higher the innovation resistance.
• Realization is how soon the consumer
expects to receive the benefits from the
innovation
John Mano Raj
• Amenability to Modification reflects the
flexibility with which the innovation can be
modified to ensure consumer satisfaction
• The lower the amenability to modification
of an innovation, the higher the innovation
resistance
John Mano Raj
Consumer Characteristics
• The higher the consumer's perceived lack of need for the product. the
higher the innovation resistance
• The lower the consumer's self-confidence. the higher the innovation
resistance
• The higher the consumer's dogmatism. the higher the innovation
resistance
• The more positive a consumer's beliefs about an innovation. the lower
the innovation resistance
• The more positive a consumer's attitude towards adopting an
innovation. the lower the innovation resistance
• The more favorable a consumer's previous innovative experience. the
lower the innovation resistance
• The poorer the ability of the consumers to innovate. the higher the
John Mano Raj
Characteristics of Propagation
Mechanisms
• The earlier the innovation is in its life cycle. the greater
the effectiveness of marketer-controlled propagation
mechanisms (such as mass media) in reducing
innovation resistance.
• The later the innovation is in its life cycle. the greater the
effectiveness of propagation mechanisms not controlled
by the marketer in reducing innovation resistance.
• Propagation mechanisms which involve direct and
personal contact with the consumer (such as word-of-
mouth and opinion leadership) are more effective than
those which involve indirect contact with the consumer in
reducing innovation resistance
John Mano Raj
Characteristics of Propagation
Mechanisms
• The higher the clarity of the propagation mechanism, the
lower the innovation resistance.
• The higher the credibility (perceived expertise) of the
propagation mechanism, the lower the innovation
resistance .
• The higher the informativeness of the propagation
mechanism. the lower the innovation resistance.
• The higher the perceived source similarity/attractiveness.
the lower the innovation resistance
John Mano Raj
MARKETING OF RAIN FALL
INSURANCE IN COFFEE: A CONCEPT
FAILURE OR PROMOTION FAILURE?
John Mano Raj

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Farmer's resistance to new products

  • 1. Farmers’ Resistance to New Product John Mano Raj
  • 2. Innovation : Inevitable • Market rewards companies that have a successful innovation track record. • Innovation is anything that is capable of bringing new value to an organisation. • Innovation is different from that of renovation. John Mano Raj
  • 3. Innovation and Renovation • Renovation seems to be less glamorous • Innovation requires both capacity and capability • Innovation requires new competencies • Renovation also adds value but lesser than innovation John Mano Raj
  • 4. • Need to continuously innovate because the natural tendency of all system to atrophy over time. • Innovation is the only way to keep the system relevant and differentiated. • Over time, consumers’ need changes, markets evolve and competitors create ‘sameness’. John Mano Raj
  • 6. Innovation resistance affects the timing of adoption John Mano Raj
  • 8. Innovation may conflict with farmers’ prior belief structure John Mano Raj
  • 9. Highly innovative products may offer consumers greater benefits than incrementally new products, yet they have a higher failure rate John Mano Raj
  • 10. Because , incongruity with consumer expectations • Recent research supports the idea of the problematic success of extremely different new products • consumers were four times more likely to choose an incrementally new product over a really new one John Mano Raj
  • 11. In fact, for consumers who reported an intention to buy a new product (60% of the original 2,700 participants), an actual purchase was twice as likely for incrementally new as compared to really new products. Overall, research suggests that the more extreme the innovation, the more likely a new product is to fail. John Mano Raj
  • 12. Reasons for Resistance • habit toward an existing practice or behavior. • perceived risks associated with innovation John Mano Raj
  • 13. According to Ram and Sheth (1989) risk may be: • physical and cause harm to a person or his property • economic, representing a wrong decision to adopt an innovation instead of waiting for a better or more inexpensive version • functional, referring to the performance and ability to function properly • social, referring to social exclusion and fear of being seen in a negative light by others. John Mano Raj
  • 15. Resistance to Innovation 1. Functional Barrier • Product usage, risk associated with usage, usage pattern, product value • Risk barrier : Physical risk, economic risk, functional risk, social risk, etc. 2. Psychological barrier • Tradition barrier • Norms of farmers John Mano Raj
  • 16. Low intensity tapping • Gives high latex yield with long term stability. Prevents panel dryness. Organic nutrients in Motex enchances physiology and metabolism of latex cells. Life span of tree increases with low intensity tapping systems. A patented product imported from chemigro Malaysia and marketed by BIOTIC LIFE SCIENCES (INDIA) PVT. LTD. John Mano Raj
  • 17. Coffee Ripening Hormone Description: It is termed as Ripening Hormone preferably used for artificial ripening. Product Name: ETHEFOL Technical Name: Ethephon 39 % S.L. (Plant Growth Regulator) John Mano Raj To get uniform ripening of berries. 1. Robusta – Spray 100 ppm sl 10-15 % berries are ripe 2. Arabica - Spray 200 ppm sl 10-15 % berries are ripe.
  • 18. John Mano Raj RUBBER ( ETHEPHON 10% SL ) For stimulating latex flow in Rubber, without affecting economic life of the trees. Scrap the bark about five centimeters below the tapping groove and apply Ethephon with a painting brush. Application during heavy rain should be avoided. Four applications in a year during the month of March, August, September & November.
  • 19. Molecular Formula C2H6CIO3P Mode of Action ETHEFOL (ETHYLENE) is actually a natural product of ripened fruit. Abscission: Ethylene is an accelerator of abscission. It Causes abscission through the enhancement of activation Of cell wall destroying enzyme. That is why Ethylene is Called as Phytogerontological hormone. Ripening: Ethylene when applied as a foliar spray Accelerates the maturity and induces uniform ripening in Pineapple, Banana, Fig, Tomato etc. Degreening of Citrus and Banana: Ethylene it increases the activity of enzyme Chlorophyllase enzyme that degrades Chlorophyll. This is the reason for de- greening phenomenon. Application Ethefol is used in many crops to bring desired effects. Most preferably it is being used for uniform ripening in Coffee, Mango, Tomato etc. as well as flower induction in Pineapple and Sex modification in Cucumber. Compatibility It is compatible with commonly used pesticides. Phytotoxicity Phytotoxicity has not been reported, when used as recommended. Available Packs 100 ml, 500 ml and 1 Liter Warranty Since the use of the product is beyond our control, we do not assume any responsibility other than the uniform quality of the product. John Mano Raj
  • 20. Cotton farmers ransack Mahyco office • Cotton farmers who were staging a protest against Mahyco for allegedly selling spurious seeds barged into the company premises near Ranebennur in Haveri district on Thursday, ransacked the office and destroyed a few documents. • They were demanding compensation of at least Rs. 25,000 an acre for the loss they suffered after sowing Bt cotton seeds sold by the company. The incident occurred at Mahyco Seed Company, located off national highway 4, near Kamadod village. • According to eyewitnesses, farmers threw stones, damaged the company’s name board and gates, ransacked security, accounts, and quality control sections, and damaged furniture. They also damaged a portion of the compound wall. John Mano Raj
  • 21. Failure of farm mechanization John Mano Raj
  • 22. Innovation Resistance factors • Perceived Innovation Characteristics. • Consumer Characteristics. • Characteristics of Propagation Mechanisms John Mano Raj
  • 23. Model of Innovation Resistance John Mano Raj
  • 25. • The Relative Advantage of an innovation may be in the form of economic gain or in the form of cost savings • The higher the perceived relative disadvantage (or lower the perceived relative advantage). the higher the innovation resistance. John Mano Raj
  • 26. • The lower the perceived compatibility (or higher the pervasiveness) of an innovation, the higher the innovation resistance • Compatibility of an innovation is "...the degree to which an innovation is perceived as consistent with the existing values. past experiences and needs • Pervasiveness of an innovation is the degree to which it relates to and requires changes or adjustments on the part of the consumer John Mano Raj
  • 27. The higher the levels of any of the perceived risk components (physical, functional, psychological or social), the higher the innovation resistance John Mano Raj
  • 28. • The lower the trialability of an innovation, the higher the innovation resistance • Trialability of an innovation relates to how easily the innovation can be tried by the consumer prior to adoption, and impacts on the perceived risk associated with the innovation John Mano Raj
  • 29. • The lower the divisibility of an innovation, the higher the innovation resistance • Divisibility measures whether an innovation can be attempted in stages. John Mano Raj
  • 30. • The lower the communicability of an innovation, the higher the innovation resistance • Communicability of an innovation is the ease and effectiveness with which the results of an innovation can be disseminated to others John Mano Raj
  • 31. • The lower the reversibility of an innovation, the higher the innovation resistance John Mano Raj
  • 32. • The lower the realization of an innovation, the higher the innovation resistance. • Realization is how soon the consumer expects to receive the benefits from the innovation John Mano Raj
  • 33. • Amenability to Modification reflects the flexibility with which the innovation can be modified to ensure consumer satisfaction • The lower the amenability to modification of an innovation, the higher the innovation resistance John Mano Raj
  • 34. Consumer Characteristics • The higher the consumer's perceived lack of need for the product. the higher the innovation resistance • The lower the consumer's self-confidence. the higher the innovation resistance • The higher the consumer's dogmatism. the higher the innovation resistance • The more positive a consumer's beliefs about an innovation. the lower the innovation resistance • The more positive a consumer's attitude towards adopting an innovation. the lower the innovation resistance • The more favorable a consumer's previous innovative experience. the lower the innovation resistance • The poorer the ability of the consumers to innovate. the higher the John Mano Raj
  • 35. Characteristics of Propagation Mechanisms • The earlier the innovation is in its life cycle. the greater the effectiveness of marketer-controlled propagation mechanisms (such as mass media) in reducing innovation resistance. • The later the innovation is in its life cycle. the greater the effectiveness of propagation mechanisms not controlled by the marketer in reducing innovation resistance. • Propagation mechanisms which involve direct and personal contact with the consumer (such as word-of- mouth and opinion leadership) are more effective than those which involve indirect contact with the consumer in reducing innovation resistance John Mano Raj
  • 36. Characteristics of Propagation Mechanisms • The higher the clarity of the propagation mechanism, the lower the innovation resistance. • The higher the credibility (perceived expertise) of the propagation mechanism, the lower the innovation resistance . • The higher the informativeness of the propagation mechanism. the lower the innovation resistance. • The higher the perceived source similarity/attractiveness. the lower the innovation resistance John Mano Raj
  • 37. MARKETING OF RAIN FALL INSURANCE IN COFFEE: A CONCEPT FAILURE OR PROMOTION FAILURE? John Mano Raj