Innovation-Decision Process presentation

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Innovation-Decision Process presentation

  1. 1. Review Diffusion of Innovations Diffusion is the process by which an innovation _________ is communicated throughcertain _____________ channels over a communication _______period of time among the members of a ____ _____ system social ______.
  2. 2. Review Pace of Diffusion Process Relative advantage Compatibility An innovation is perceived as difficult to use and understand Trialability Observability
  3. 3. Diffusion of InnovationsInnovation-Decision Process Huynh Minh Ngoc – s3311659 Nguyen Cong Thanh – s3309949 Le Ha Ai Vi – s3296952
  4. 4. ContentsReviewInnovation-Decision ProcessCase studyApplicationsActivity
  5. 5. Innovation – Decision processFive stages:1. Knowledge2. Persuasion3. Decision4. Implementation5. Confirmation
  6. 6. Innovation-Decision process WINTER“The process through which an individual (or Templateother decision-making unit) passes(1)from first knowledge of an innovation,(2)to forming an attitude toward the innovation,(3)to a decision to adopt or reject,(4)to implementation of the new idea,(5)and to confirmation of this decision”. (Rogers 1995)
  7. 7. Prior conditions: Previous practice Innovation-Decision Process Felt needs/problems Innovativeness Norms of the social system Communication Channels 1 2 3 4 5Knowledge Persuasion Decision Implementation Confirmation
  8. 8. Innovation-Decision process Knowledge- Occurs when an individual learns of the innovation’sexistence and gains some understanding of how it functions.- Mental activity is mainly cognitive (Rogers 1995).- Use mass media channels as means (Haider and Kreps 2004).- Three individual generalizations:Socioeconomic statusPersonality variablesCommunication behaviors Figure 1. Reproduced from: childbehaviorsolution 2012
  9. 9. Innovation-Decision process Persuasion- Occurs when an individual forms afavorable or unfavorable attitude towardthe innovation.- Five attributes of the innovation affectingits rate of diffusion: relative advantage,compatibility and so on.- Mainly based on feelings- Focus on interpersonal channels
  10. 10. Innovation-Decision process Decision - Occurs when an individual engages in activities that lead to a choice to adopt or reject the innovation. Adoption: make use of an innovation as the best course of action available. Rejection: not to adopt an innovation. Active rejection: considering and trying the innovation out on a limited basis, then deciding not to adopt. Passive rejection (non-adoption): consists of never really considering the use of the innovation. (Rogers 1995)
  11. 11. Innovation-Decision process Implementation - Occurs when an individual utilizes an innovation. - However, the degree of uncertainty about the expected Figure 2. Reproduced from: Certified Green Business 2012 consequences of an innovation still exists.
  12. 12. Innovation-Decision process Confirmation WINTER- Occurs when individuals seek reinforcement Templateto the decision that they have already made orreverses a previous decision to adopt or rejectthe innovation if exposed to conflictingmessages about the innovation.- Whether the final choice is adoption orrejection, it will be a long term effect.
  13. 13. CASE STUDY: DIFFUSION OF HYBRID SEED CORN IN IOWA, USA
  14. 14. Background-Hybrid seed corn: Introduced to Iowa farmers in 1928 and remainedas one of the most important new agricultural technologies.-Characteristics: . Increased productivity by 20%. . Suitable for mechanical corn pickers -> Reduced the need for alarge number of farmers to harvest the corp. . More drought-resistant.Figure 3. Reproduced from Urban Farmer 2012 Figure 4. Reproduced from Urban Farmer 2011 (Rogers 2003)
  15. 15. Background- In 1941, Ryan and Gross investigated on the diffusion of hybridseed corn in the area. In general, their findings suggested that (a) The diffusion process took 12 years to reach widespreaddiffusion. (b) The average farmer needed 7 years to progress from initialawareness of the innovation to full-scale adoption.- Specifically, a qualitative research was conducted in 2 communitiesin Iowa and a total of 259 famers were interviewed to understandfarmers’ decision to adopt the hybrid seed corn. Most farmer-respondents recognized that they went through aseries of stages. (Rogers 2003)
  16. 16. Innovation-Decision process Knowledge-Salesmen from the seed corn company introduced the innovation toIowa farmers.- Influencing factors: Socioeconomic characteristics: The seed lost it hybrid vigor after the first generation -> required annual purchase -> costed quite amount of money given the Depression context. Previous practice: Previously, farmers had selected the best- looking corn plants to use as seed for the following years -> the adoption of hybrid corn meant an important change in the corn- growing behavior.  Obstructed knowledge-gaining process.  Slowed down the diffusion process as a whole. (Rogers, Singhal & Quinlan 2009)
  17. 17. Innovation-Decision process Persuasion-Iowa farmers mentally applied the new idea to their present or ananticipated future situation before deciding whether or not to try it.- However, like any innovation, hybrid seed corn carried somedegree of uncertainty. Sought social reinforcement for their attitude toward theinnovation by referring to the neighbors . The neighbor gave meaning to the innovation, leading to theforming of positive attitude and persuasion. (Rogers, Singhal & Quinlan 2009)
  18. 18. Innovation-Decision process Decision -The small-scale trial is often an important part of the decision to adopt. -In 1930s, the seed corn salesmen gave a small bag of the new seed, which was enough to plant about an acre of corn, to Iowa farmers entering the decision stage.  A large enough trial to convince the farmer to adopt the new idea on all of his corn acreage in the next few years. (Rogers, Singhal & Quinlan 2009)
  19. 19. Innovation-Decision process Implementation - Implementation usually follows the decision stage rather directly.  With such facilitations from the seed corn company, the famers-respondents trialed the seed corn. (Rogers, Singhal & Quinlan 2009)
  20. 20. Innovation-Decision process Confirmation WINTER- Innovators and early adopters were more likely to positively confirmtheir decision to implement the innovation than later adopters, meaning Templatethat the rate of adoption was faster. (Rogers, Singhal & Quinlan 2009) Figure 5. Reproduced from Rogers 2003
  21. 21. ActivityExplain the popularity of The Voice usingInnovation – Decision Process Figure 6. Reproduced from Hoang Lan 2012
  22. 22. Applications of DOI theoryAn overarching, theoretical framework that havewide applicability (Horsky & Simon 1983).AdvertisingFashionTechnologyHealth CareAgricultureCulture Figure 7. Reproduced from Innovation Group 2012
  23. 23. Key terms•Diffusion is the process by which an innovation iscommunicated through certain communicationchannels over a period of time among the members ofa social system.•Innovation-decision process: knowledge persuasion  decision  implementation  confirmation.•5 attributes: relative advantages, compatibility,complexity, trialiability, observability•Adopter categories: innovators, early adopter, earlymajority, late majority, laggard•S-curve
  24. 24. ReferencesCertified Green Business 2012, ‘Certification Process’, image, Certified GreenBusiness , viewed 1 August 2012, <http://www.smcsbdcgreen.org/certification-process/>.Childbehaviorsolusion 2012, ‘Control TV watching children’, image, blogspot, viewed1 August 2012, <http://childbehaviorsolution.blogspot.com/2012/01/tv-watching.html>.Horsky, D & Simon, LS 1983, ‘Advertising and the diffusion of new products’,Marketing Science, vol.2, no.1, pp. 1-17.Hoang Lan 2012, ‘The Voice cua Vietnam chinh thuc khoi dong’ (The Voice Vietnamofficially runs), image, Hanoimoi, viewed 2 August 2012,<http://hanoimoi.com.vn/newsdetail/Giai-tri/541668/the-voice-cua-viet-nam-chinh-thuc-khoi-dong.htm>.Innovation Group 2012, ‘Innovation Crisis’, image, InnovationGroup, viewed 1 August2012, < http://innovate.ucsb.edu/ >.Oklahoma Farm Report 2011, ‘Corn growing’, image, Oklahomafarmreport, viewed 2August 2012,<http://oklahomafarmreport.com/wire/news/2011/08/media/02223_cornGrowing.jpg>.
  25. 25. ReferencesRogers, EM 1995, ‘The Innovation-Decision Process’, Diffusion of Innovations, 4th edn,The Free Press, New York, pp. 161-203.Stacks, D & Salwen, M (eds) 2009, An integrated approach to communication theoryand research, 2nd edn, Lawrence Erlbaum Associates, Mahwah.Urban Farmer 2012, ‘Hybrid corn seed’, image, llnwd, viewed 2 August 2012,<http://imavex.vo.llnwd.net/o18/clients/urbanfarm/images/Corn/Bodacious_Corn.jpg>.

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