FACTORS

1. Factors affecting rate of diffusion and consumer adoption

2. Adoption is an individual’s decision
to become a regular user of a
product and is followed by the
consumer-loyalty process.

3. Stages in the adoption
process
Awareness
Interest
Evaluation
Trial
Adoption

4. Factors influencing the
adoption process
readiness to try new
products and personal
influence
characteristics of the
innovation
organisation’s readiness
to adopt innovations

5. Diffusion and adoption

6. Readiness to try new products
and personal influence
Person’s level of innovativeness is the
degree to which an individual is relatively
earlier in adopting new ideas than the other
members of his social system.
Five adopter groups:
•
Innovators (technology enthusiasts)
•
Early adopters (opinion leaders)
•
Early majority (deliberate pragmatists)
•
Late majority (skeptical conservatives)
•
Laggards (tradition-bound)
Personal influence

7. NIKE
To gain “street card” with teen skaters, it sold exclusively to independent shops, advertised nowhere but sports magazines.

8. Characteristics of the
innovation
Five characteristics influence an innovation’s rate of
adoption:
Relative advantage
Comparability
Complexity
Divisibility
Communicability

9. Organisation’s readiness to
adopt innovators
•
Variables in the organisation’s environment :
Community progressiveness
Community income
•
Variables in organisation:
Size
Profits
Pressure to change
•
Variables in the administrators:
•
Education level
Age
Sophistication

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