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The Diffusion of Innovation The diffusion process is concerned with how innovations spread, that is, how they are assimilated with in the market.  We have chosen the Tata sky bas our product because it was launched in 2004 and we want to see that customer adopted it or not. *Diffusion is the Process by which the acceptance of an innovation (a new product, new service, new idea, or new practice) is spread by communication (mass media, Salespeople, or informal conversations) to members of social systems (a target market) over a period of time.  The four Basic Elements of the Diffusion process:  ,[object Object]
The channels of Communication,
The social system
Time1) The Innovation: the Innovation is classified in four parts’ ,[object Object]

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The Diffusion Of Innovation

  • 1.
  • 2. The channels of Communication,
  • 4.
  • 5. Product-Oriented Definitions: the product oriented approach focuses on the features in herent in the product itself and on the effects these features are likely to have on consumers usage patterns. There are three types of product innovation:
  • 6. *Consumer behavior by Schiffman and KanuckA continuous innovation for the Tata sky is that they have modified the product features rather than discovering them. The various features are 150 channels, providing live telecast of various holy places, on demand movies, etc.
  • 7. A dynamic continuous innovation is more disruptive than continuous innovation but still does not alter established behavior patterns. If we take Tata Sky then there are continuous innovation i.e. paying the monthly bill through the credit card from Tata sky site, recording Live telecast for 48 hours and switch to other channels, activating different facilities like matrimony, games, sports, etc.
  • 8.
  • 9. An Adopter category involves a classification scheme that indicates where a consumer stands in relation to other consumers in terms of time. The five adopter categories are:
  • 10. Innovators: these people are high N.C., Highly verbalizes, highly inner directed and detached. Very eager to try new ideas. Not only Tata sky but also with any product these are the people who try the product and recommend.
  • 11. Early Adopters: these people are also verbalize, other directed, high N.C., and according to CAD theory they are aggressive. Early adopters are integrated into local system (opinions are socially accepted).
  • 12. Early majority adopt new idea just prior to the average time. These people do not take risks, visualize to high degree and low N.C.
  • 13. Late Majority adopt new idea just after to the average time .These people are compliant as well as dogmatic.
  • 14. Laggards are last people to adopt an innovation. These people are traditional and also have lack of exposure. These people are highly dogmatic.Adoption Process Five-stage mental process all prospective customers go through from learning of a new product to becoming loyal customers or rejecting it. These stages are (1) Awareness: prospects come to know about a product but lack sufficient information about it; (2) Interest: they try to get more information; (3) Evaluation: they consider whether the product is beneficial; (4) Trial: they make the first purchase to determine its worth or usefulness; (5) Adoption/Rejection: they decide to adopt it, or look for something else. Another explanation is that the customer moves from a cognitive state (being aware and informed) to the emotional state (liking and preference) and finally to the behavioral or cognitive state (deciding and purchasing). Also called adoption process.