BASICS OF MARKETING- UNIT-3, BBA-1 SEM, OSMANIA UNIVERSITY, NEW PRODUCT DEVELOPMENT, NPD, NEW PRODUCT CATEGORIES, PRODUCT DEVELOPMENT PROCESS, REASONS FOR NEW PRODUCT FAILURES, Consumer Adoption Process, ADOPTER CATEGORIES, CONSUMER DECISION PROCESS.

1. BASICS OF
MARKETING
UNIT-3
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC)
ASSOCIATE PROFESSOR IN MANAGEMENT

2. NEW
PRODUCT
DEVELOPMENT

21. Consumer
Adoption
Process

22. CONSUMER ADOPTION PROCESS
Adoption process Stages that consumers go through in learning
about a new product, trying it, and deciding whether to purchase it again.
• Consumers go through five stages:
1. Awareness—individuals first learn of the new product, but
they lack full information about it.
2. Interest—potential buyers begin to seek information about it
3. Evaluation—they consider the likely benefits of the product.
4. Trial—they make trial purchases to determine its usefulness.
5. Adoption/rejection—decide whether to use the product
regularly.

23. ADOPTER CATEGORIES
• Consumer innovators People who purchase
new products almost as soon as the products
reach the market.
• Diffusion process by which new goods or
services are accepted in the marketplace.

24. IDENTIFYING EARLY ADOPTERS
• Firms who reach early buyers can treat them as a test market.
• Tend to be younger, have higher social status, are better educated, and
enjoy higher incomes than other consumers.
Rate of Adoption Determinants
• Relative advantage—increases the product’s adoption rate.
• Compatibility—innovation consistent with the values and experiences
of potential adopters.
• Complexity—difficulty understanding the innovation can slow the
speed of acceptance.
• Possibility of trial use—can accelerate the rate of adoption.
• Observability—observing an innovation’s superiority increase the
adoption rate.