factors affect the rate of diffusion and consumer adoption of newly launched products and services

1. Factors affecting the rate of diffusion and
consumer adoption of newly launched
products and services

2. What is consumer adoption???
Adoption is an individual’s decision to become a regular user
of a product

4. Factors Influencing the Adoption Process

5. 1.Differences in individual readiness to try new products

6. *technology enthusiasts
*enjoy tinkering with new products and
mastering their intricacies
*are happy to conduct alpha and beta testing
and report on early weaknesses

7. Early adopters are opinion leaders who carefully
search for new technologies that might give them a
dramatic competitive advantage

8. Early majority are deliberate pragmatists who adopt the
new technology when its benefits are proven and a lot of
adoption has already taken place.

9. Late majority are skeptical conservatives who are risk
averse , technology shy , and price sensitive

12. .
2.Personal influence

13. The effect one person has on another’s attitude or
purchase probability
It has more power over late than early adopters and in
risky situations

14. 3.CHARACTERISTICS OF THE INNOVATION
Some products catch on immediately whereas others take a
long time to gain acceptance

15. Five characteristics influence an innovation’s rate of adoption
1.Relative advantage
3.Compatibility
4.Complexity
5.Divisibility
2.Communicability

16. relative advantageRELATIVE ADVANTAGE
the degree to which the innovation
appears superior to existing
products

17. the degree to which the innovation
matches the values and
experiences of the individual
Compatibility

18. the degree to which the innovation
is difficult to understand or useComplexity

19. the degree to which the innovation
can be tried on a limited basis
Divisibility

20. the degree to which the benefits of
use are observable or describable
to others
communicability

21. 4.ORGANIZATIONS READINESS TO ADOPT INNOVATIONS