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Consumer Behavior
Hussain A. Al Awami, B.Sc. Pharm., M.Sc., MBA
Consumer Influence and the
Diffusion of Innovations
Chapter 15
introduction

             Dynamic processes that
           affect consumer acceptance
                  of new products
...
Opinion Leadership
 Opinion leader informally affects
 opinion seekers
Examples


 Family gas barbeque

 Film photograph

 New TV series
Statistics
 4 times likely to be asked about
 political

 3 times likely to be asked about
 computers

 2 times likely to ...
WOM effectiveness


 71% “friends recommendation”

 63% “past experience:

 15% “advertising”
Dynamics of opinion leadership
process

 Credibility
 Positive & negative product
 information
 Information and advice
 Op...
Credibility

 Objective “no incentive” of using the
 product

 200-1,000 sales communication a day

 Thousands of times to...
Positive & negative product
information
 Marketers favor their product/brand

 Opinion leader provide both
   Favorable
  ...
Information and Advice


 Talk about their experience

 Advice to buy or to avoid
Opinion leadership is category
specific

 Specialize in certain products

 Becomes opinion seeker for other
 products
Opinion leadership is a 2 way
street

 Opinion leader becomes opinion
 receiver for the same product

 They might change t...
The motivation behind Opinion
Leadership
The needs of opinion leaders
 To satisfy some basic needs

 May be unaware of their underlying
 motive

 Benefits to opini...
The needs of opinion
receivers
 New product information

 Reduce their perceived risk

 Reduce search time

 Opinion leade...
Profile of opinion leader,
general
 Innovativeness
 Willingness to talk
 Self confidence
 Gregariousness
 Cognitive differ...
Profile of opinion leader,
category specific
 Interest
 Knowledge
 Special interest media exposure
 Same age
 Same social ...
Diffusion of innovations
Diffusion AND adoption
process
Macro process




                Micro process
The Diffusion Process
 Innovation

 Channels of communication

 Social system

 Time
Innovation
 No universally accepted definition

 Innovation
   Firm
   Product
   Market
   Consumer oriented definition
Product characteristics that
influence diffusion
 Not all products diffuse in the same
 manner

 Marketers need to anticip...
5 Characteristics
 Relative advantage
 Compatibility
 Complexity
 Trialability
 Observability
Innovation overload
 Too much information or options

 Complexity of products waste time an
 reduce chance of acceptance o...
Channels of communication


 Communication between marketers
 and consumers

 Communication among consumers
The social system
 Social setting

 Market segment and target market

 Physical, social, or cultural
 environment
Social system acceptance of
innovation

 Modern orientation have high
 acceptance of new products.

 Traditional orientati...
Typology of modern social
system
 Positive attitude toward change
 Advanced technology
 General respect for education and
...
Time


 Amount of purchase time

 Identification of adaptor categories

 Rate of adoption
The adoption process
Stages in the adoption
process
 Awareness
 Interest
 Evaluation
 Trial
 Adoption (or rejection)
Consumer Influence And The Diffusion Of Innovation
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Consumer Influence And The Diffusion Of Innovation

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Consumer Influence And The Diffusion Of Innovation

  1. 1. Consumer Behavior Hussain A. Al Awami, B.Sc. Pharm., M.Sc., MBA
  2. 2. Consumer Influence and the Diffusion of Innovations Chapter 15
  3. 3. introduction Dynamic processes that affect consumer acceptance of new products Informal influence on consumer behavior
  4. 4. Opinion Leadership Opinion leader informally affects opinion seekers
  5. 5. Examples Family gas barbeque Film photograph New TV series
  6. 6. Statistics 4 times likely to be asked about political 3 times likely to be asked about computers 2 times likely to be asked about health
  7. 7. WOM effectiveness 71% “friends recommendation” 63% “past experience: 15% “advertising”
  8. 8. Dynamics of opinion leadership process Credibility Positive & negative product information Information and advice Opinion leadership is category specific Opinion leadership is a two-way street
  9. 9. Credibility Objective “no incentive” of using the product 200-1,000 sales communication a day Thousands of times to respond to friend recommendation
  10. 10. Positive & negative product information Marketers favor their product/brand Opinion leader provide both Favorable Unfavorable
  11. 11. Information and Advice Talk about their experience Advice to buy or to avoid
  12. 12. Opinion leadership is category specific Specialize in certain products Becomes opinion seeker for other products
  13. 13. Opinion leadership is a 2 way street Opinion leader becomes opinion receiver for the same product They might change their opinion after conversation
  14. 14. The motivation behind Opinion Leadership
  15. 15. The needs of opinion leaders To satisfy some basic needs May be unaware of their underlying motive Benefits to opinion leaders
  16. 16. The needs of opinion receivers New product information Reduce their perceived risk Reduce search time Opinion leader approval
  17. 17. Profile of opinion leader, general Innovativeness Willingness to talk Self confidence Gregariousness Cognitive differentiation
  18. 18. Profile of opinion leader, category specific Interest Knowledge Special interest media exposure Same age Same social status Social exposure outside group
  19. 19. Diffusion of innovations
  20. 20. Diffusion AND adoption process Macro process Micro process
  21. 21. The Diffusion Process Innovation Channels of communication Social system Time
  22. 22. Innovation No universally accepted definition Innovation Firm Product Market Consumer oriented definition
  23. 23. Product characteristics that influence diffusion Not all products diffuse in the same manner Marketers need to anticipate consumers reactions to their products
  24. 24. 5 Characteristics Relative advantage Compatibility Complexity Trialability Observability
  25. 25. Innovation overload Too much information or options Complexity of products waste time an reduce chance of acceptance of new products
  26. 26. Channels of communication Communication between marketers and consumers Communication among consumers
  27. 27. The social system Social setting Market segment and target market Physical, social, or cultural environment
  28. 28. Social system acceptance of innovation Modern orientation have high acceptance of new products. Traditional orientation have low acceptance of new products
  29. 29. Typology of modern social system Positive attitude toward change Advanced technology General respect for education and science Emphasis on rational Interaction with outsiders Members can see themselves in new roles
  30. 30. Time Amount of purchase time Identification of adaptor categories Rate of adoption
  31. 31. The adoption process
  32. 32. Stages in the adoption process Awareness Interest Evaluation Trial Adoption (or rejection)

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