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Diffusion 
of 
Innovation 
Prasad Dalvi (04) 
Kamal Rajpurohit (15) 
Manas Prabhudesai (20) 
Siddhesh Parab (45)
Diffusion of Innovation 
Diffusion is the process by which an innovation is communicated through certain 
channels over time among the members of a social system 
10-11-2014 Diffusion Of Innovation 2
1 
Attributes of 
innovations and 
their rates of 
adoption 
KEY ELEMENTS OF PRESENTATION 
2 
Adopter 
categories 
3 
4 
Change agent Stages in the 
innovation-decision 
making 
process 
5 
Case study 
10-11-2014 Diffusion Of Innovation 3
1 
Attributes of 
innovations 
and their 
rates of 
adoption 
KEY ELEMENTS OF PRESENTATION 
2 
Adopter 
categories 
3 
4 
Change agent Stages in the 
innovation-decision 
making 
process 
5 
Case study 
10-11-2014 Diffusion Of Innovation 4
COMPLEXITY 
COMPATIBILITY 
OBSERVABILITY 
TRIALIBILITY 
INFRASTRUCTURE 
COMMUNICATION CHANNELS 
NORMS/ROLES/SOCIAL 
NETWORKS 
PACE OF INNOVATION/ 
REINVENTION 
RELATIVE ADVANTAGE 
OPINION LEADERS 
10-11-2014 Diffusion Of Innovation 5
COMPLEXITY 
COMPATIBILITY 
OBSERVABILITY 
TRIALIBILITY 
INFRASTRUCTURE 
COMMUNICATION CHANNELS 
NORMS/ROLES/SOCIAL 
NETWORKS 
PACE OF INNOVATION/ 
REINVENTION 
RELATIVE ADVANTAGE 
OPINION LEADERS 
10-11-2014 Diffusion Of Innovation 6
Relative advantage 
Degree to which an innovation is perceived as being better than the idea it 
supersedes 
Factors 
Economic Factors and Rate of Adoption 
Status aspects of innovation 
Effects of Incentives Adopter vs diffuser 
Individual versus system 
Positive versus negative 
Cholecystectomy vs. laparascopic Monetary vs nonmonetary 
cholecystectomy 
10-11-2014 Diffusion Of Innovation 7
Trialability 
Degree to which an innovation may be experimented with on a limited basis 
Distribution of samples by pharma 
companies 
Professional association 
conferences and trade shows 
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Observability 
Degree to which the results of an innovation are visible to others 
Clinical Trial data to doctors Post marketing surveillance data 
Youtube reviews for technological 
innovations 
10-11-2014 Diffusion Of Innovation 9
Compatibility 
Degree to which an innovation is perceived as consistent with the existing values, 
past experiences, and needs of potential adopters 
• Compatibility with values and beliefs – Eg.Miracle rice crop 
• Compatibility with previously introduced ideas 
• Compatibility with needs 
CT scan – X ray Thyronorm - Eltroxin 
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Complexity 
Degree to which an innovation is perceived as relatively difficult to understand and use 
• The complexity of an innovation, as perceived by members of a social system, is 
negatively related to its rate of adoption 
Command prompt to Windows Windows 7 to Windows 8 
Insulin injections to Insulin pen 
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Over adoption 
Over adoption is the adoption of an innovation by an individual when experts 
feel that he or she should reject 
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Naming of innovation 
In rural areas condoms had a very negative perception as a contraceptive method 
The word "Nirodh" was carefully chosen in India in 1970 as the most appropriate term 
for condoms 
A U.S based major soap company introduced its trademark product named CUE in 
French speaking nations, where the word has an obscene connotation 
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Positioning an innovation 
Positioning research can help to identify an ideal niche for an innovation 
to fill relative to existing ideas in the same field 
10-11-2014 Diffusion Of Innovation 14
Positioning an innovation 
Positioning research can help to identify an ideal niche for an innovation 
to fill relative to existing ideas in the same field 
10-11-2014 Diffusion Of Innovation 15
1 
Attributes of 
innovations and 
their rates of 
adoption 
KEY ELEMENTS OF PRESENTATION 
2 
Adopter 
categories 
3 
4 
Change agent Stages in the 
innovation-decision 
making 
process 
5 
Case study 
10-11-2014 Diffusion Of Innovation 16
ADOPTERS 
Not all individuals in a social system adopt an innovation at the same time. Rather, 
they adopt in a time sequence, and they may be classified into adopter categories on 
the basis of when they first begin using a new idea 
INNOVATORS 
ADOPTER 
CATEGORIES 
EARLY ADOPTERS 
EARLY MAJORITY 
LATE MAJORITY 
LAGGARDS 
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INNOVATORS (venturesome) 
First to adopt & display that they likely to want to be ahead 
They are often not taken seriously by their peers 
To be the first to own new products, well before the average consumer 
They often buy products that do not make it through the early stages of 
the Product Life Cycle (PLC). 
10-11-2014 Diffusion Of Innovation 18
EARLY ADOPTERS(respectable) 
Are also quick to buy new products and services 
So are key opinion leaders (KOLs) with their neighbors and friends as 
they tend to be amongst the first to get hold of items or services. 
10-11-2014 Diffusion Of Innovation 19
EARLY MAJORITY(deliberate) 
Look to the innovators and early majority to see if a new product or idea 
works and begins to stand the test of time 
They stand back and watch the experiences of others 
Then there is a surge of mass purchases 
10-11-2014 Diffusion Of Innovation 20
LATE MAJORITY(Skeptical) 
Tends to purchase the product later than the average person. 
They are slower to catch on to the popularity of new products, services, 
ideas, or solutions 
There is still mass consumption, but it begins to end. 
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LAGGARDS(traditional) 
These tend to very late to take on board new products and include those 
that never actually adopt at all 
Here there is little to be made from these consumers 
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INNOVATORS EARLY 
MAJORITY 
LATE 
MAJORITY 
LAGGARDS 
EARLY 
2.5% ADOPTERS 
13.5% 34% 34% 
16% 
Bell shaped 
Diffusion Curve 
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Diffusion effect 
Cumulative degree of increasing influence upon an individual to adopt or 
reject an innovation resulting from activation of peer networks about the 
innovation in the social system 
100% 
Percentage of 
adopters 
0% 
Time 
Cumulative 
No. of adopters 
New adopters 
Diffusion starts 
to take off 
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Sales 
INTRODUCTION GROWTH MATURITY DECLINE 
Product life cycle 
Time 
Diffusion curve 
Product life cycle 
Vs. 
Diffusion curve 
10-11-2014 Diffusion Of Innovation 25
Cancian Dip 
Dr. Cancian also makes quite a point of the necessity to measure local socioeconomic status 
rather than societal stratification; i.e socioeconomic status is measured as an individual's 
status relative to other members of his or her social system, not in comparison to everyone 
else in the nation 
10-11-2014 Diffusion Of Innovation 26
Low 
class 
Low middle 
class 
High middle 
class 
High 
class 
Degree of 
innovativeness 
Linear 
relationship 
Social economic status 
Of adopters 
High 
Low 
Cancian Dip 
Cancian Dip 
10-11-2014 Diffusion Of Innovation 27
CHARACTERISTICS 
OF ADOPTERS 
SOCIO-ECONOMIC 
STATUS 
PERSONALITY 
VARIABLES 
COMMUNICATION 
BEHAVIOUR 
10-11-2014 Diffusion Of Innovation 28
SOCIO-ECONOMIC 
STATUS 
Earlier adopters have 
more years of education 
than later adopters have. 
Earlier adopters have more specialized 
operations than later adopters. 
Earlier adopters are more likely to be literate 
than are later adopters. 
Earlier adopters have 
higher social status than 
later adopters. 
Earlier adopters have a greater degree of 
upward social mobility than later adopters 
Earlier adopters 
have larger-sized 
units than later 
adopters 
Earlier adopters are more likely to have a commercial (rather than a 
subsistence) economic orientation than are later 
adopters. 
Earlier adopters have a more favorable attitude 
toward credit (borrowing money) than later adopters 
10-11-2014 Diffusion Of Innovation 29
PERSONALITY VARIABLES 
Earlier adopters have a more favourable 
attitude toward science than later adopters 
Earlier adopters may be 
less dogmatic than 
later adopters. 
Earlier adopters are less fatalistic than 
Earlier adopters have a greater ability 
to deal with abstractions than later 
Earlier adopters have a more 
favorable attitude toward 
education than later adopters 
Earlier adopters have greater 
rationality than later adopters 
Earlier adopters are more able to cope with uncertainty 
and risk than later adopters 
Earlier adopters 
have a more 
favourable attitude 
toward change 
than later adopters 
Earlier adopters have greater empathy than 
later adopters. 
Earlier adopters have greater intelligence than later 
adopters 
adopters. 
later adopters. 
Earlier adopters have higher levels of 
achievement motivation than later adopters. Earlier adopters have higher 
aspirations than later adopters. 
10-11-2014 Diffusion Of Innovation 30
COMMUNICATION 
BEHAVIOUR 
Earlier adopters have more social participation 
than later adopters. 
Earlier adopters are more cosmopolite than 
Earlier adopters have 
more change agent 
contact than later 
adopters 
Earlier adopters have greater 
exposure to 
mass media communication channels 
than later adopters. 
Earlier adopters are 
more highly 
interconnected 
in the social system 
than later adopters 
Earlier adopters are more likely to belong to 
highly interconnected systems than are later adopters 
Earlier adopters seek 
information about innovations 
more actively than later 
adopters 
Earlier adopters have a higher 
degree of opinion 
leadership than later adopters 
Earlier adopters have greater exposure to interpersonal 
communication channels than later adopters 
later adopters. 
Earlier adopters have greater knowledge of 
innovations than later adopters. 
10-11-2014 Diffusion Of Innovation 31
OPINION LEADERSHIP 
& 
DIFFUSION NETWORKS 
‘ Every heard of wild cattle has its leaders, its influential heads ‘ 
- Gabriel Tarde (1903), 
The Laws of Imitation 
10-11-2014 Diffusion Of Innovation 32
Opinion Leadership 
The degree to which an individual is able to informally influence other individuals' 
attitudes or overt behaviour in desired way with relative frequency 
External communication 
Characteristics of 
opinion leader 
Accessibility 
Socio-economic Status 
Innovativeness 
“Invention can start from the lowest ranks 
of the people, but its extension depends 
upon the existence of some lofty social 
elevation” 
-Tarde(1903) 
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Diffusion network 
These subjective evaluations of an innovation mainly flow through interpersonal 
networks. For this reason, we must understand the nature of networks if we are to 
comprehend the diffusion of innovations fully 
Communication proximity 
Degree to which two individuals in a network have personal communication 
networks that overlap 
By Granovette (1973) 
10-11-2014 Diffusion Of Innovation 34
A B 
Low communication proximity 
C D 
High communication proximity 
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Communication flow 
Model of mass 
communication 
flow 
Hypodermic Needle Model 
The Two-Step Flow Model 
Homophily-Heterophily and the 
Flow of Communication 
10-11-2014 Diffusion Of Innovation 36
Homophily-Heterophily 
A fundamental principle of human communication is that the transfer of ideas occurs most 
frequently between individuals who are alike, or homophilous. Homophily is the degree to 
which pairs of individuals who interact are similar in certain attributes, such as beliefs, 
education, social status, and the like. 
10-11-2014 Diffusion Of Innovation 37
A 
B 
D C 
E 
X 
Y 
Strong ties 
Weak ties 
V U 
W 
The communication link plays a crucial 
function in the flow of information in this 
network; if it were removed, the network 
would collapse into two unconnected cliques 
According to Granovetter's (1973) theory of the-strength-of-weak-ties, the low proximity 
B-X link is "strong" in its potential for carrying information between the two unalike 
cliques, thus playing a crucial role in the diffusion of innovativeness 
10-11-2014 Diffusion Of Innovation 38
Homophily-Heterophily 
When interpersonal diffusion networks are heterophilous, 
followers seek opinion leaders with more education 
When interpersonal diffusion networks are 
heterophilous, followers seek opinion leaders 
who are more cosmopolite 
When interpersonal diffusion networks are 
heterophilous, followers seek opinion 
When interpersonal diffusion networks are 
heterophilous, followers seek opinion leaders with greater change 
agent contact. 
leaders with greater mass media 
exposure. 
When interpersonal diffusion networks are 
heterophilous, followers seek opinion leaders 
of higher socioeconomic status. 
When interpersonal diffusion networks are 
heterophilous, followers seek opinion 
leaders who are more innovative. 
10-11-2014 Diffusion Of Innovation 39
1 
Attributes of 
innovations and 
their rates of 
adoption 
KEY ELEMENTS OF PRESENTATION 
2 
Adopter 
categories 
3 
Change 
agent 
4 
Stages in the 
innovation-decision 
making 
process 
5 
Case study 
10-11-2014 Diffusion Of Innovation 40
Change Agent 
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Change Agent 
An individual who influences clients' 
innovation decisions in a direction deemed 
desirable by a change agency 
10-11-2014 Diffusion Of Innovation 42
Change agent 
linkage 
‘ One of the main roles of a change agent is to facilitate the flow of innovations from a 
change agency to an audience of clients ’ 
Client’s 
needs and 
feedback 
Innovation 
Flow to 
clients 
Change 
agency 
Client 
system 
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Sequence of 
change 
Agent roles 
LOADING… 
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Develop need for 
change 
 
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
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1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
Develop need for 
change 
Establish an 
info exchange 
relationship 
10-11-2014 Diffusion Of Innovation 46
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
Develop need for 
change 
Establish an 
info exchange 
relationship 
change 
Agent roles Diagnose the 
problems of 
clients 
10-11-2014 Diffusion Of Innovation 47
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
Develop need for 
change 
Establish an 
info exchange 
relationship 
Diagnose the 
problems of 
clients 
Create intent to 
change in client 
10-11-2014 Diffusion Of Innovation 48
Translate 
intent into 
action 
 
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
Develop need for 
change 
Establish an 
info exchange 
relationship 
Diagnose the 
problems of 
clients 
Create intent to 
change in client 
10-11-2014 Diffusion Of Innovation 49
Stabilize adoption  
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
Translate intent 
into action 
Develop need for 
change 
Establish an 
info exchange 
relationship 
Diagnose the 
problems of 
clients 
Create intent to 
change in client 
10-11-2014 Diffusion Of Innovation 50
Prevent 
discontinuance 
 
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
Stabilize adoption 
Translate intent 
into action 
Develop need for 
change 
Establish an 
info exchange 
relationship 
Diagnose the 
problems of 
clients 
Create intent to 
change in client 
10-11-2014 Diffusion Of Innovation 51
Achieve a terminal 
relationship 
 
1 
2 
3 
5 4 
6 
7 
8 
Sequence of 
change 
Agent roles 
Prevent 
discontinuance 
Stabilize adoption 
Translate intent 
into action 
Develop need for 
change 
Establish an 
info exchange 
relationship 
Diagnose the 
problems of 
clients 
Create intent to 
change in client 
10-11-2014 Diffusion Of Innovation 52
Para professional aides 
An aide is a less than fully professional change agent who intensively contacts 
low level socially backward clients to influence their innovation decisions 
Less technically Expert 
But 
Low cost per client 
10-11-2014 Diffusion Of Innovation 53
Competence credibility 
The degree to which a communication source or channel is perceived as 
knowledgeable and expert 
Safety credibility 
The degree to which a communication source or channel is perceived 
as trustworthy 
10-11-2014 Diffusion Of Innovation 54
Competence credibility 
The degree to which a communication source or channel is perceived as 
knowledgeable and expert 
Safety credibility 
The degree to which a communication source or channel is perceived 
as trustworthy 
Safety 
credibility 
Competence 
credibility 
10-11-2014 Diffusion Of Innovation 55
Barefoot Doctors 
They are actually part-time doctors trained to diagnose and treat common 
diseases without professional assistance. It might be expected that such a 
radical idea would face stiff opposition from the medical profession, but 
in China Mao had virtually wiped out the Ministry of Health in 1966 
during the Cultural Revolution. So the medical profession was essentially 
by passed in establishing the new rural health system 
Socially very close to the villagers - Homophily 
Refer difficult cases to the community hospital 
50 
10-11-2014 Diffusion Of Innovation 56
Set Fractured Bones Deliver Babies 
Vaccinations 
Emergency Appendectomy 
Perform Abortions Insert IUDs Suture Lacerations 
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1 
Attributes of 
innovations and 
their rates of 
adoption 
KEY ELEMENTS OF PRESENTATION 
2 
Adopter 
categories 
3 
4 
Change agent Stages in the 
innovation-decision 
making 
process 
5 
Case study 
10-11-2014 Diffusion Of Innovation 59
Types of innovation decisions 
Collective—decide as a group, consensus 
Optional—voluntary, individual choice 
Authoritative—top down decision, must do it! 
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Innovation decision process 
An information-seeking and information-processing activity in which 
an individual is motivated to reduce uncertainty with the advantages 
and disadvantages of the innovation 
10-11-2014 Diffusion Of Innovation 61
STAGES OF DECISION PROCESS 
Knowledg 
e 
One is exposed to an innovation’s existence 
and gains an understanding of how it functions. 
Persuasio 
n 
One forms a favorable or unfavorable attitude toward the innovation. 
Decision 
One engages in activities that lead to a choice to adopt or reject. 
Implementatio 
n One put an innovation to use. 
Confirmation 
One seeks reinforcement of their decision. 
10-11-2014 Diffusion Of Innovation 62
INNOVATION DECISION 
PROCESS 
Knowledge Persuasion 
Interpersonal 
Attitude 
Adoption 
Decision 
Uncertainty 
Reduction 
Rejection 
Perceived 
Characteristics 
of Innovation 
Re-invention 
Institutionalization 
Implementation 
Confirmatio 
n 
Continue 
d 
Adoption 
Dissonance 
Discontinuanc 
e 
Replacement 
Disenchantment 
Later Adoption 
Dissonance 
Continue 
d 
Rejection 
10-11-2014 Diffusion Of Innovation 63
Knowledge implementation Persuasion Decision Confirmation 
Decision Process 
and types of 
decisions 
The decision leads to 
adoption or rejection 
Of these methods 
Optional 
Collective 
Authority 
Perceived 
attributes of 
innovation 
Rate of 
Adoption of 
innovation 
Social system 
Relative 
advantage 
Compatibility 
Observability 
Complexity 
Trialability 
Extent of Change agent’s 
promotional efforts 
Communication 
Channel 
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DIFFUSION MODELS 
Centralized 
De centralized 
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Characteristics 
of diffusion system Centralized diffusion system De-centralized diffusion system 
1.Degree of 
centralization 
In decision making 
and power 
Over all decision by national 
Government administration and 
technical subjects expert 
Wide sharing of power 
and control among the 
members 
2.Direction of 
diffusion 
Top down diffusion from experts 
To local users of innovation 
Peer diffusion of innovation 
throughhorizontal networks 
3.Sources of 
innovation 
Innovation come from formal 
R & D conducted by technical 
expert 
Innovation comes from 
local experimentation 
By no experts, who often 
are users 
4.Who decides which 
innovation to diffuse? 
Decision about which innovations 
Should be diffused are made by 
top administration and technical 
subject 
Local units decide which 
innovations should diffuse 
on the basis of thir informal 
evaluations of innovation 
5.How important are 
clients’ needs in 
driving the diffusion 
process? 
An innovation-centred approach: 
technology -push, emphasizing 
needs created by availability of 
The innovation 
A problem centred approach : 
technology –pull, created by 
Locally perceived needs 
and problem 
6.Amount of 
re-invention? 
A low degree of local adoption 
& re-invention of the innovation 
as they diffuse among adopters 
A high degree of local adaption 
& re-invention of innovations 
as they diffuse among adopters 
10-11-2014 Diffusion Of Innovation 66
1 
Attributes of 
innovations and 
their rates of 
adoption 
KEY ELEMENTS OF PRESENTATION 
2 
Adopter 
categories 
3 
4 
Change agent Stages in the 
innovation-decision 
making 
process 
5 
Case study 
10-11-2014 Diffusion Of Innovation 67
Case Study 
Guess the molecule ? 
10-11-2014 Diffusion Of Innovation 68
To find out the social processes which intervened 
between the initial trials of the drug by a few local 
innovators and its final use by virtually the whole medical 
community 
RESEARCH 
OBJECTIVE 
The study focused on the ongoing social processes which 
finally led to widespread adoption of the drug by 
physicians 
FOCUS 
Data were collected 15 months after a new drug with wide potential use, 
here called “tetracycline" had been placed on the market 
10-11-2014 Diffusion Of Innovation 69
3 Sociometric Questions 
1 
With whom did 
he most often 
discuss his cases 
in the course of 
an ordinary 
week? 
2 
Who were the 
friends, among 
his colleagues, 
whom he saw 
most often 
socially? 
3 
With whom did 
he most often 
discuss his 
cases in the 
course of an 
ordinary week? 
The "others" named by each doctor in answer to the sociometric questions were 
included in the sample, so that it became possible to characterize pairs or chains of 
socially connected doctors 
124 
10-11-2014 Diffusion Of Innovation 70
Month during which each doctor first used the drug. 
DEPENDENT 
VARIABLE 
This information was obtained through a search of the 
prescription records of the local pharmacies for three-day 
sampling periods at approximately monthly intervals 
over the 15 months following the release date of the 
drug 
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Data about the informal 
social structure of the 
medical community 
The month of each 
doctor's first prescription 
for the new drug 
Individual 
attributes of 
each doctor 
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The doctor's relative orientation to his professional colleagues and to patients, 
inferred from his answer to the following question: 
How would you rank the importance of these characteristics in recognizing a good 
doctor in a town like this? 
The respect in which he is 
held by his own patients 
The recognition given him 
by his local colleagues 
His general standing in 
the community 
The research and publications he 
has to his credit 
67 57 
Profession oriented Patient oriented 
A 
B 
C 
D 
CDAB, CADB, CBDA, CABD ABCD, ACBD, ACDB, ABDC 
10-11-2014 Diffusion Of Innovation 73
Fig.1 
Relationship of the resulting classification to 
the date of introduction of the new drug 
Observation : 
Profession- oriented doctors generally used 
the drug earlier than the less profession-oriented 
ones 
Profession-oriented doctors in Figure 1 differed 
from the patient-oriented from the very start 
almost as much as later on 
The constant difference between the 
profession-oriented and patient- oriented 
doctors suggests that they differ individually in 
their receptivity to new developments in 
medicine 
10-11-2014 Diffusion Of Innovation 74
Fig.2 
The results with regard to the network of 
friendships 
Observation : 
The "integrated" doctors-those named as 
"friends" by three or more of their colleagues-were 
much faster to introduce tetracycline 
The integrated doctors were little different 
from their isolated colleagues at the very 
beginning; but then their rate accelerated to 
produce an increasing gap between the curves 
The accelerating difference between the 
integrated and isolated doctors suggests a kind 
of "'snowball" or "chain-reaction' process for 
the integrated 
10-11-2014 Diffusion Of Innovation 75
2 
Fig.3 
Social connection 
2 
Professional orientation 
Observation : 
Vs. 
1 
Faster rate of diffusion is observed 
between the doctors with high social 
connectivity than those who simply 
maintained their intrinsically different 
receptivity as the time went on 
Thus, the communication channels have 
a greater influence on the adoption of 
innovation than the individual attributes 
leading to adoption of innovation 
1 
10-11-2014 Diffusion Of Innovation 76
s 
t l 
o 
e r 
B 
Saga 
k c b 
u 
10-11-2014 Diffusion Of Innovation 77
Whose brain child ? From which year D2C marketing was permitted in US ? 
LIPITOR 
“Merck and Bristol-Myers spent 10 years educating doctors to get them to 
use their drugs, but Lipitor, at lower doses, is a much better deal. It's kind 
of a marketing coup” 
-- Kevin Graham 
(Cardiologist at Minneapolis Heart Institute, Minneapolis) 
10-11-2014 Diffusion Of Innovation 78
1997 
th 
Mevacor 
Zocor 
Pravachol 
Lescol 
TURBOSTATIN 
>60% increased 
Efficacy 
"Those other companies didn't even take us seriously. They didn't think we could 
be a viable contender" 
-- Adele Gulfo, 
(Head of cardiovascular marketing at Warner-Lambert Co.) 
10-11-2014 Diffusion Of Innovation 79
Warner Pfizer 
lambert 
Consumer health Listerine 
Benadryl allergy pills 
Halls cough drops 
Sales approach : Saturation strategy 
PARKE DAVIS Atorvastatin 
10-11-2014 Diffusion Of Innovation 80
Positioning 
 Reduce heart attacks and death through 
cholesterol lowering capabilities 
 Ease of use ( no need / ease of dose 
titration) 
72% 
10-11-2014 Diffusion Of Innovation 81
The beauty of Lipitor’s positioning is that physicians can remain ‘lazy’ by using the 
starting dose and then forgetting about it, but the goals achieved with Lipitor will be 
greater than with any other statin 
-- Carl Seiden, 
(Analyst from J.P.Morgan) 
10-11-2014 Diffusion Of Innovation 82
Promotion 
National cholesterol education program in association 
with AMA 
Lipitor was publicized in medical journals and at major 
medical conventions with pre-market comparative 
efficacy data 
Free sampling to KOL after drug approval but before 
official launch 
Pre marketing 
promotions 
Warner-Lambert and Pfizer implemented an aggressive sampling 
program, distributing 7.3 million samples to physicians in the first 
year of launch for a share of voice of slightly over 23% 
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1997 
D2C 
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1997 
D2C 
Consumer Consumer KOL Don’t Kid Yourself 
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The company was forced to purchase a fully operational manufacturing 
facility just months after Lipitor launched in an effort to keep up with 
In my two decades of experience within the pharmaceutical industry, I have never 
witnessed the launch of a fifth comparable drug to treat a non-symptomatic disease 
take off as rapidly as Lipitor has 
Hemant Shah 
President of HKS & Company 
demand 
Manufacturing executives admitted that the market demand was so 
strong that they exhausted what they thought was a 3-month drug supply 
virtually overnight. 
10-11-2014 Diffusion Of Innovation 90
Many observers think Lipitor succeeded because Pfizer sold it hard to the public on 
television and print. In fact, that is not true. Lipitor had the number one new Rx share 
of about 34 before Pfizer launched the campaign in 1999 
The national advertising created by Bates Advertising worked and Lipitor continued 
to grow into the $7.6 billion brand it became in the U.S. and achieved $12.8 billion 
worldwide at its peak. Over the course of its patent life Lipitor sold $131 billion, the 
largest in drug history 
10-11-2014 Diffusion Of Innovation 91
PATIENT POURING STRATEGIES 
Health groups kept lowering the cholesterol 
targets in national guidelines 
New research showed the link between 
cholesterol levels and consequences such 
as heart attacks 
MRs repeatedly visited family doctors as well as cardiologists, 
and blanketed patients with data showing that Lipitor was best 
at lowering cholesterol 
MRs stressed to doctors nervous about 
safety that Lipitor's lowest dose worked as 
well as rivals' highest doses. 
MRs gave free samples of the white pills and sometimes bought 
lunch for the office staff 
10-11-2014 Diffusion Of Innovation 92
MARKETING 
OF 
MADNESS 
Show me a sane man and I shall cure him for you 
-Dr.Carl Gustav Jung 
(Psychiatrist and Psychotherapist) 
10-11-2014 Diffusion Of Innovation 93
1 Billion 
600% 
10-11-2014 Diffusion Of Innovation 94
Life Problems As Medical 
Disorders 
SHYNESS SOCIAL ANXIETY DISORDER PAXIL 
LOSS OF A LOVED ONE MAJOR DEPRESSIVE DISORDER PROZAC 
HOME SICKNESS SEPARATION ANXIETY DISORDER LEXAPRO 
SUSPECTION PARANOID PERSONALITY DISORDER ZOLOFT 
HAVING UPS AND DOWNS BIPOLAR DISORDER ABILIFY 
DISTRACTABILITY ADHD RITALIN/ADDERALL 
10-11-2014 Diffusion Of Innovation 95
Pharma companies convincing 
doctors to write their brands…. 
How to drive patients to the doctors 
clinics and make them believe that 
they are sick… 
Product theatres in psychiatry conferences 
KOL’s then convinence fellow psychiatrists 
Psychiatrists in turn influence GP’s for writing 
the prescriptions 
Funding of prominent medical journals and 
Sampling 
ghost writing 
Catch physicians young in the medical 
institutes.Groom them into speakers for your 
drugs 
Generate so called KOL’s 
10-11-2014 Diffusion Of Innovation 96
10-11-2014 
Direct to Consumer advertising Using internet as a channel 
Mental health screening concepts 
Diffusion Of Innovation 97 
Children magazines 
Disease Mongering 
Pharma companies convincing 
doctors to write their brands…. 
How to drive patients to the doctors 
clinics and make them believe that 
they are sick…
API of PROZAC ? Whose molecule ? 
PROZAC 
10-11-2014 Diffusion Of Innovation 98
The diffusion curve in the US was 
strongly influenced by the debates 
surrounding Prozac 
The debates about Prozac played some role in 
creating a resistance to the drug in the UK 
10-11-2014 Diffusion Of Innovation 99
1980s 
ORAFLEX 
Diet control CNS Chronic diseases 
10-11-2014 Diffusion Of Innovation 100
1980s 
Diet control CNS Chronic diseases 
Depression 
Fluoxetine 
Incidental 
Weight loss 
10-11-2014 Diffusion Of Innovation 101
60% 
Dieting 
st 
Company to release side effects 
free anti obesity drug would rule 
the US and UK market 
10-11-2014 Diffusion Of Innovation 102
Diet Pill 
Anti Depressant 
10-11-2014 Diffusion Of Innovation 103
Less common Chills or fever 
convulsions (seizures) 
purple or red spots on the skin 
racing heartbeat 
excessive hunger 
overactive reflexes mood or behavior changes 
unusual tiredness or weakness difficulty with concentration 
cool pale skin 
trouble with breathing 
lack of energy 
shivering or shaking shakiness or unsteady walk 
headache 
increased thirst 
Drowsiness Dizziness Feeling nervous 
Sneezing 
Sore throat 
Side effects 
Nausea 
Upset stomach 
Constipation 
increased sweating 
Sleep problems 
dark urine 
Decreased sex drive 
Weight changes 
Impotence 
Increased appetite 
Dry mouth 
restlessness 
Hives 
itching 
bleeding gums 
inability to sit still 
confusion 
skin rash 
diarrhea 
Rare Anxiety 
cold sweats 
dryness of the mouth 
unusual or incomplete body or facial 
movements 
talking, feeling, and acting with 
excitement and activity you cannot 
control 
fast or irregular heartbeat 
back or leg pains 
chest pain or discomfort 
blood in the urine or stools 
difficulty with swallowing 
blindness 
bloody, black, or tarry stools 
continuing vomiting 
blistering, peeling, or loosening of the skin 
bloating 
cough or dry cough 
decreased urine output 
decreased vision 
constipation 
depression 
severe sleepiness 
clay-colored stools 
blurred vision 
difficulty with breathing 
slurred speech 
rapid weight gain 
blue-yellow color blindness dizziness or lightheadedness pinpoint red spots on the skin 
redness, tenderness, itching, burning, 
or peeling of the skin 
sores, ulcers, or white spots on the lips 
or in the mouth pain in the ankles severe muscle stiffness 
10-11-2014 Diffusion Of Innovation 104
Diffusion Communication 
Channels 
Heterophily Homophily 
Dr. - Dr. 
Co. – Dr. C - C 
Co. - C 
Dr. - C 
10-11-2014 Diffusion Of Innovation 105
MARKETING CAMPAIGN FOR 
DOCTORS 
The kind of positioning Eli Lilly did for Prozac, 
shifted Prozac, 
from Psychiatrist’s inpatient dept. to GP’s outpatient dept. 
10-11-2014 Diffusion Of Innovation 106
GP 
(KOLs) 
Psychiatrist 
Ghost writing 
Influence 
10-11-2014 Diffusion Of Innovation 107
96 hr. of CME Depression = Chronic disease 
DSM produced for GP 
Samples 
Prozac = alternative for Talk therapy 
GP 
10-11-2014 Diffusion Of Innovation 108
96 hr. of CME Depression = Chronic disease 
DSM produced for GP 
Samples 
Prozac = alternative for Talk therapy 
Top of the mind recall 
New patients poured in 
Continue therapy to avoid relapse 
GP 
2/3rd of total prescriptions 
10-11-2014 Diffusion Of Innovation 109
Off label uses 
Diabetics and migraine 
Generalised Anxiety disorder Dysthymia 
Personality disorders 
Stage fright 
Social phobia 
Premenstrual 
Syndrome 
Eating disorders 
Borderline personality disorder 
“You can give Prozac to anyone you want, in fact, I have even added it to my 
watering can and found geraniums grow better on it.” 
- Mauro and Breggin 1994:47 
10-11-2014 Diffusion Of Innovation 110
Off label uses 
New indications 
Diabetics and migraine 
Generalised Anxiety disorder Dysthymia 
Personality disorders 
Stage fright 
Social phobia 
Premenstrual 
Syndrome 
Eating disorders 
Borderline personality disorder 
OCD 
Bulimia 
“You can give Prozac to anyone you want, in fact, I have even added it to my 
watering can and found geraniums grow better on it.” 
- Mauro and Breggin 1994:47 
10-11-2014 Diffusion Of Innovation 111
Childhood Depression 
600,000 children 
Orange Mint 
10-11-2014 Diffusion Of Innovation 112
Ecstasy 
API Of Ectasy ? 
Mood is a light bulb and serotonin is the voltage which keeps it glowing. 
Prozac restores the voltage and brightens to normal. Ecstasy produces 
blinding flash as bulb burns out 
-Dr. Simpson (Medical Director, Eli Lilly) 
10-11-2014 Diffusion Of Innovation 113
D2C 
Company makes Products 
People make Brands 
10-11-2014 Diffusion Of Innovation 114
TV advertisement slots were increased from 2hrs. P.a to 16hrs.p.a 
You have a problem ? 
We have a solution 
Talk to your Dr. 
10-11-2014 Diffusion Of Innovation 115
Teen Screen camp 
School Children American Soldiers 
Camp in Malls 
Foster 
Children 
E-Forms 
10-11-2014 Diffusion Of Innovation 116
Cultural Construct of Prozac 
10-11-2014 Diffusion Of Innovation 117
A fashionable accessory designer drug, for trend highfliers, 
seeking to ease the anxiety of modern living 
Brand Personality 
A ‘Go for it’ drug for 
individualistic and 
independent personality 
people in 1990s 
• Self confidence 
• Social poise 
• Energy 
• Assertiveness 
• Independent 
10-11-2014 Diffusion Of Innovation 118
Recognise the person? 
Madness was the new Sexy 
Kurt Cobain got a wider fame as a suicide victim than a 
musician at that time 
10-11-2014 Diffusion Of Innovation 119
Prozac : Emblem of vigour and 
emotional individualism 
Prozac : Just another antidepressant 
And a mind deadening American fadd 
10-11-2014 Diffusion Of Innovation 120
10-11-2014 Diffusion Of Innovation 121
Dr.Peter D. Kramer 
(Psychiatrist) 
Prozac is not a drug and did not induce false synthetic experiences, 
but merely removed obstacles to feeling more content and relaxed 
10-11-2014 Diffusion Of Innovation 122
Dr.Peter D. Kramer 
(Psychiatrist) 
Prozac has become a feminist drug as it’s major users are women for 
the main reason being, it frees women from inhibiting consequences 
of trauma 
10-11-2014 Diffusion Of Innovation 123
Prozac thus slotted neatly into a classic 
elixir paradigm, thus being viewed as a 
drug which enabled people to realize their 
aspirations painlessly 
Eli Lilly criticized Dr.Kramer for creating 
unrealistic expectations(to be on safe side) 
by describing him as a part time psychiatrist 
and part time writer, and his book being 
based on personal observations and not on a 
controlled study 
10-11-2014 Diffusion Of Innovation 124
But by this time, Prozac was diffused 
extensively in the society pouring a lot of 
profit to Eli Lilly 
10-11-2014 Diffusion Of Innovation 125
REFFERENCES 
• The Diffusion of an Innovation Among PhysiciansAuthor(s): James 
Coleman, Elihu Katz and Herbert MenzelSource: Sociometry, Vol. 20, No. 
4 (Dec., 1957), pp. 253-270 
• Lipitor: At the Heart of Warner-Lambert – university of Michigan 
business school 
• Diffusion of innovation – Everett Rogers 
• The University of Hull - Managing the Diffusion of Medical Technologies 
10-11-2014 Diffusion Of Innovation 126
THANK 
YOU 
10-11-2014 Diffusion Of Innovation 127

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Diffusion of Innovation

  • 1. Diffusion of Innovation Prasad Dalvi (04) Kamal Rajpurohit (15) Manas Prabhudesai (20) Siddhesh Parab (45)
  • 2. Diffusion of Innovation Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system 10-11-2014 Diffusion Of Innovation 2
  • 3. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 3
  • 4. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 4
  • 5. COMPLEXITY COMPATIBILITY OBSERVABILITY TRIALIBILITY INFRASTRUCTURE COMMUNICATION CHANNELS NORMS/ROLES/SOCIAL NETWORKS PACE OF INNOVATION/ REINVENTION RELATIVE ADVANTAGE OPINION LEADERS 10-11-2014 Diffusion Of Innovation 5
  • 6. COMPLEXITY COMPATIBILITY OBSERVABILITY TRIALIBILITY INFRASTRUCTURE COMMUNICATION CHANNELS NORMS/ROLES/SOCIAL NETWORKS PACE OF INNOVATION/ REINVENTION RELATIVE ADVANTAGE OPINION LEADERS 10-11-2014 Diffusion Of Innovation 6
  • 7. Relative advantage Degree to which an innovation is perceived as being better than the idea it supersedes Factors Economic Factors and Rate of Adoption Status aspects of innovation Effects of Incentives Adopter vs diffuser Individual versus system Positive versus negative Cholecystectomy vs. laparascopic Monetary vs nonmonetary cholecystectomy 10-11-2014 Diffusion Of Innovation 7
  • 8. Trialability Degree to which an innovation may be experimented with on a limited basis Distribution of samples by pharma companies Professional association conferences and trade shows 10-11-2014 Diffusion Of Innovation 8
  • 9. Observability Degree to which the results of an innovation are visible to others Clinical Trial data to doctors Post marketing surveillance data Youtube reviews for technological innovations 10-11-2014 Diffusion Of Innovation 9
  • 10. Compatibility Degree to which an innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters • Compatibility with values and beliefs – Eg.Miracle rice crop • Compatibility with previously introduced ideas • Compatibility with needs CT scan – X ray Thyronorm - Eltroxin 10-11-2014 Diffusion Of Innovation 10
  • 11. Complexity Degree to which an innovation is perceived as relatively difficult to understand and use • The complexity of an innovation, as perceived by members of a social system, is negatively related to its rate of adoption Command prompt to Windows Windows 7 to Windows 8 Insulin injections to Insulin pen 10-11-2014 Diffusion Of Innovation 11
  • 12. Over adoption Over adoption is the adoption of an innovation by an individual when experts feel that he or she should reject 10-11-2014 Diffusion Of Innovation 12
  • 13. Naming of innovation In rural areas condoms had a very negative perception as a contraceptive method The word "Nirodh" was carefully chosen in India in 1970 as the most appropriate term for condoms A U.S based major soap company introduced its trademark product named CUE in French speaking nations, where the word has an obscene connotation 10-11-2014 Diffusion Of Innovation 13
  • 14. Positioning an innovation Positioning research can help to identify an ideal niche for an innovation to fill relative to existing ideas in the same field 10-11-2014 Diffusion Of Innovation 14
  • 15. Positioning an innovation Positioning research can help to identify an ideal niche for an innovation to fill relative to existing ideas in the same field 10-11-2014 Diffusion Of Innovation 15
  • 16. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 16
  • 17. ADOPTERS Not all individuals in a social system adopt an innovation at the same time. Rather, they adopt in a time sequence, and they may be classified into adopter categories on the basis of when they first begin using a new idea INNOVATORS ADOPTER CATEGORIES EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS 10-11-2014 Diffusion Of Innovation 17
  • 18. INNOVATORS (venturesome) First to adopt & display that they likely to want to be ahead They are often not taken seriously by their peers To be the first to own new products, well before the average consumer They often buy products that do not make it through the early stages of the Product Life Cycle (PLC). 10-11-2014 Diffusion Of Innovation 18
  • 19. EARLY ADOPTERS(respectable) Are also quick to buy new products and services So are key opinion leaders (KOLs) with their neighbors and friends as they tend to be amongst the first to get hold of items or services. 10-11-2014 Diffusion Of Innovation 19
  • 20. EARLY MAJORITY(deliberate) Look to the innovators and early majority to see if a new product or idea works and begins to stand the test of time They stand back and watch the experiences of others Then there is a surge of mass purchases 10-11-2014 Diffusion Of Innovation 20
  • 21. LATE MAJORITY(Skeptical) Tends to purchase the product later than the average person. They are slower to catch on to the popularity of new products, services, ideas, or solutions There is still mass consumption, but it begins to end. 10-11-2014 Diffusion Of Innovation 21
  • 22. LAGGARDS(traditional) These tend to very late to take on board new products and include those that never actually adopt at all Here there is little to be made from these consumers 10-11-2014 Diffusion Of Innovation 22
  • 23. INNOVATORS EARLY MAJORITY LATE MAJORITY LAGGARDS EARLY 2.5% ADOPTERS 13.5% 34% 34% 16% Bell shaped Diffusion Curve 10-11-2014 Diffusion Of Innovation 23
  • 24. Diffusion effect Cumulative degree of increasing influence upon an individual to adopt or reject an innovation resulting from activation of peer networks about the innovation in the social system 100% Percentage of adopters 0% Time Cumulative No. of adopters New adopters Diffusion starts to take off 10-11-2014 Diffusion Of Innovation 24
  • 25. Sales INTRODUCTION GROWTH MATURITY DECLINE Product life cycle Time Diffusion curve Product life cycle Vs. Diffusion curve 10-11-2014 Diffusion Of Innovation 25
  • 26. Cancian Dip Dr. Cancian also makes quite a point of the necessity to measure local socioeconomic status rather than societal stratification; i.e socioeconomic status is measured as an individual's status relative to other members of his or her social system, not in comparison to everyone else in the nation 10-11-2014 Diffusion Of Innovation 26
  • 27. Low class Low middle class High middle class High class Degree of innovativeness Linear relationship Social economic status Of adopters High Low Cancian Dip Cancian Dip 10-11-2014 Diffusion Of Innovation 27
  • 28. CHARACTERISTICS OF ADOPTERS SOCIO-ECONOMIC STATUS PERSONALITY VARIABLES COMMUNICATION BEHAVIOUR 10-11-2014 Diffusion Of Innovation 28
  • 29. SOCIO-ECONOMIC STATUS Earlier adopters have more years of education than later adopters have. Earlier adopters have more specialized operations than later adopters. Earlier adopters are more likely to be literate than are later adopters. Earlier adopters have higher social status than later adopters. Earlier adopters have a greater degree of upward social mobility than later adopters Earlier adopters have larger-sized units than later adopters Earlier adopters are more likely to have a commercial (rather than a subsistence) economic orientation than are later adopters. Earlier adopters have a more favorable attitude toward credit (borrowing money) than later adopters 10-11-2014 Diffusion Of Innovation 29
  • 30. PERSONALITY VARIABLES Earlier adopters have a more favourable attitude toward science than later adopters Earlier adopters may be less dogmatic than later adopters. Earlier adopters are less fatalistic than Earlier adopters have a greater ability to deal with abstractions than later Earlier adopters have a more favorable attitude toward education than later adopters Earlier adopters have greater rationality than later adopters Earlier adopters are more able to cope with uncertainty and risk than later adopters Earlier adopters have a more favourable attitude toward change than later adopters Earlier adopters have greater empathy than later adopters. Earlier adopters have greater intelligence than later adopters adopters. later adopters. Earlier adopters have higher levels of achievement motivation than later adopters. Earlier adopters have higher aspirations than later adopters. 10-11-2014 Diffusion Of Innovation 30
  • 31. COMMUNICATION BEHAVIOUR Earlier adopters have more social participation than later adopters. Earlier adopters are more cosmopolite than Earlier adopters have more change agent contact than later adopters Earlier adopters have greater exposure to mass media communication channels than later adopters. Earlier adopters are more highly interconnected in the social system than later adopters Earlier adopters are more likely to belong to highly interconnected systems than are later adopters Earlier adopters seek information about innovations more actively than later adopters Earlier adopters have a higher degree of opinion leadership than later adopters Earlier adopters have greater exposure to interpersonal communication channels than later adopters later adopters. Earlier adopters have greater knowledge of innovations than later adopters. 10-11-2014 Diffusion Of Innovation 31
  • 32. OPINION LEADERSHIP & DIFFUSION NETWORKS ‘ Every heard of wild cattle has its leaders, its influential heads ‘ - Gabriel Tarde (1903), The Laws of Imitation 10-11-2014 Diffusion Of Innovation 32
  • 33. Opinion Leadership The degree to which an individual is able to informally influence other individuals' attitudes or overt behaviour in desired way with relative frequency External communication Characteristics of opinion leader Accessibility Socio-economic Status Innovativeness “Invention can start from the lowest ranks of the people, but its extension depends upon the existence of some lofty social elevation” -Tarde(1903) 10-11-2014 Diffusion Of Innovation 33
  • 34. Diffusion network These subjective evaluations of an innovation mainly flow through interpersonal networks. For this reason, we must understand the nature of networks if we are to comprehend the diffusion of innovations fully Communication proximity Degree to which two individuals in a network have personal communication networks that overlap By Granovette (1973) 10-11-2014 Diffusion Of Innovation 34
  • 35. A B Low communication proximity C D High communication proximity 10-11-2014 Diffusion Of Innovation 35
  • 36. Communication flow Model of mass communication flow Hypodermic Needle Model The Two-Step Flow Model Homophily-Heterophily and the Flow of Communication 10-11-2014 Diffusion Of Innovation 36
  • 37. Homophily-Heterophily A fundamental principle of human communication is that the transfer of ideas occurs most frequently between individuals who are alike, or homophilous. Homophily is the degree to which pairs of individuals who interact are similar in certain attributes, such as beliefs, education, social status, and the like. 10-11-2014 Diffusion Of Innovation 37
  • 38. A B D C E X Y Strong ties Weak ties V U W The communication link plays a crucial function in the flow of information in this network; if it were removed, the network would collapse into two unconnected cliques According to Granovetter's (1973) theory of the-strength-of-weak-ties, the low proximity B-X link is "strong" in its potential for carrying information between the two unalike cliques, thus playing a crucial role in the diffusion of innovativeness 10-11-2014 Diffusion Of Innovation 38
  • 39. Homophily-Heterophily When interpersonal diffusion networks are heterophilous, followers seek opinion leaders with more education When interpersonal diffusion networks are heterophilous, followers seek opinion leaders who are more cosmopolite When interpersonal diffusion networks are heterophilous, followers seek opinion When interpersonal diffusion networks are heterophilous, followers seek opinion leaders with greater change agent contact. leaders with greater mass media exposure. When interpersonal diffusion networks are heterophilous, followers seek opinion leaders of higher socioeconomic status. When interpersonal diffusion networks are heterophilous, followers seek opinion leaders who are more innovative. 10-11-2014 Diffusion Of Innovation 39
  • 40. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 Change agent 4 Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 40
  • 41. Change Agent 10-11-2014 Diffusion Of Innovation 41
  • 42. Change Agent An individual who influences clients' innovation decisions in a direction deemed desirable by a change agency 10-11-2014 Diffusion Of Innovation 42
  • 43. Change agent linkage ‘ One of the main roles of a change agent is to facilitate the flow of innovations from a change agency to an audience of clients ’ Client’s needs and feedback Innovation Flow to clients Change agency Client system 10-11-2014 Diffusion Of Innovation 43
  • 44. Sequence of change Agent roles LOADING… 10-11-2014 Diffusion Of Innovation 44
  • 45. Develop need for change 1 2 3 5 4 6 7 8 Sequence of change Agent roles 10-11-2014 Diffusion Of Innovation 45
  • 46. 1 2 3 5 4 6 7 8 Sequence of change Agent roles Develop need for change Establish an info exchange relationship 10-11-2014 Diffusion Of Innovation 46
  • 47. 1 2 3 5 4 6 7 8 Sequence of Develop need for change Establish an info exchange relationship change Agent roles Diagnose the problems of clients 10-11-2014 Diffusion Of Innovation 47
  • 48. 1 2 3 5 4 6 7 8 Sequence of change Agent roles Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 48
  • 49. Translate intent into action 1 2 3 5 4 6 7 8 Sequence of change Agent roles Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 49
  • 50. Stabilize adoption 1 2 3 5 4 6 7 8 Sequence of change Agent roles Translate intent into action Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 50
  • 51. Prevent discontinuance 1 2 3 5 4 6 7 8 Sequence of change Agent roles Stabilize adoption Translate intent into action Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 51
  • 52. Achieve a terminal relationship 1 2 3 5 4 6 7 8 Sequence of change Agent roles Prevent discontinuance Stabilize adoption Translate intent into action Develop need for change Establish an info exchange relationship Diagnose the problems of clients Create intent to change in client 10-11-2014 Diffusion Of Innovation 52
  • 53. Para professional aides An aide is a less than fully professional change agent who intensively contacts low level socially backward clients to influence their innovation decisions Less technically Expert But Low cost per client 10-11-2014 Diffusion Of Innovation 53
  • 54. Competence credibility The degree to which a communication source or channel is perceived as knowledgeable and expert Safety credibility The degree to which a communication source or channel is perceived as trustworthy 10-11-2014 Diffusion Of Innovation 54
  • 55. Competence credibility The degree to which a communication source or channel is perceived as knowledgeable and expert Safety credibility The degree to which a communication source or channel is perceived as trustworthy Safety credibility Competence credibility 10-11-2014 Diffusion Of Innovation 55
  • 56. Barefoot Doctors They are actually part-time doctors trained to diagnose and treat common diseases without professional assistance. It might be expected that such a radical idea would face stiff opposition from the medical profession, but in China Mao had virtually wiped out the Ministry of Health in 1966 during the Cultural Revolution. So the medical profession was essentially by passed in establishing the new rural health system Socially very close to the villagers - Homophily Refer difficult cases to the community hospital 50 10-11-2014 Diffusion Of Innovation 56
  • 57. Set Fractured Bones Deliver Babies Vaccinations Emergency Appendectomy Perform Abortions Insert IUDs Suture Lacerations 10-11-2014 Diffusion Of Innovation 57
  • 58. 10-11-2014 Diffusion Of Innovation 58
  • 59. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 59
  • 60. Types of innovation decisions Collective—decide as a group, consensus Optional—voluntary, individual choice Authoritative—top down decision, must do it! 10-11-2014 Diffusion Of Innovation 60
  • 61. Innovation decision process An information-seeking and information-processing activity in which an individual is motivated to reduce uncertainty with the advantages and disadvantages of the innovation 10-11-2014 Diffusion Of Innovation 61
  • 62. STAGES OF DECISION PROCESS Knowledg e One is exposed to an innovation’s existence and gains an understanding of how it functions. Persuasio n One forms a favorable or unfavorable attitude toward the innovation. Decision One engages in activities that lead to a choice to adopt or reject. Implementatio n One put an innovation to use. Confirmation One seeks reinforcement of their decision. 10-11-2014 Diffusion Of Innovation 62
  • 63. INNOVATION DECISION PROCESS Knowledge Persuasion Interpersonal Attitude Adoption Decision Uncertainty Reduction Rejection Perceived Characteristics of Innovation Re-invention Institutionalization Implementation Confirmatio n Continue d Adoption Dissonance Discontinuanc e Replacement Disenchantment Later Adoption Dissonance Continue d Rejection 10-11-2014 Diffusion Of Innovation 63
  • 64. Knowledge implementation Persuasion Decision Confirmation Decision Process and types of decisions The decision leads to adoption or rejection Of these methods Optional Collective Authority Perceived attributes of innovation Rate of Adoption of innovation Social system Relative advantage Compatibility Observability Complexity Trialability Extent of Change agent’s promotional efforts Communication Channel 10-11-2014 Diffusion Of Innovation 64
  • 65. DIFFUSION MODELS Centralized De centralized 10-11-2014 Diffusion Of Innovation 65
  • 66. Characteristics of diffusion system Centralized diffusion system De-centralized diffusion system 1.Degree of centralization In decision making and power Over all decision by national Government administration and technical subjects expert Wide sharing of power and control among the members 2.Direction of diffusion Top down diffusion from experts To local users of innovation Peer diffusion of innovation throughhorizontal networks 3.Sources of innovation Innovation come from formal R & D conducted by technical expert Innovation comes from local experimentation By no experts, who often are users 4.Who decides which innovation to diffuse? Decision about which innovations Should be diffused are made by top administration and technical subject Local units decide which innovations should diffuse on the basis of thir informal evaluations of innovation 5.How important are clients’ needs in driving the diffusion process? An innovation-centred approach: technology -push, emphasizing needs created by availability of The innovation A problem centred approach : technology –pull, created by Locally perceived needs and problem 6.Amount of re-invention? A low degree of local adoption & re-invention of the innovation as they diffuse among adopters A high degree of local adaption & re-invention of innovations as they diffuse among adopters 10-11-2014 Diffusion Of Innovation 66
  • 67. 1 Attributes of innovations and their rates of adoption KEY ELEMENTS OF PRESENTATION 2 Adopter categories 3 4 Change agent Stages in the innovation-decision making process 5 Case study 10-11-2014 Diffusion Of Innovation 67
  • 68. Case Study Guess the molecule ? 10-11-2014 Diffusion Of Innovation 68
  • 69. To find out the social processes which intervened between the initial trials of the drug by a few local innovators and its final use by virtually the whole medical community RESEARCH OBJECTIVE The study focused on the ongoing social processes which finally led to widespread adoption of the drug by physicians FOCUS Data were collected 15 months after a new drug with wide potential use, here called “tetracycline" had been placed on the market 10-11-2014 Diffusion Of Innovation 69
  • 70. 3 Sociometric Questions 1 With whom did he most often discuss his cases in the course of an ordinary week? 2 Who were the friends, among his colleagues, whom he saw most often socially? 3 With whom did he most often discuss his cases in the course of an ordinary week? The "others" named by each doctor in answer to the sociometric questions were included in the sample, so that it became possible to characterize pairs or chains of socially connected doctors 124 10-11-2014 Diffusion Of Innovation 70
  • 71. Month during which each doctor first used the drug. DEPENDENT VARIABLE This information was obtained through a search of the prescription records of the local pharmacies for three-day sampling periods at approximately monthly intervals over the 15 months following the release date of the drug 10-11-2014 Diffusion Of Innovation 71
  • 72. Data about the informal social structure of the medical community The month of each doctor's first prescription for the new drug Individual attributes of each doctor 10-11-2014 Diffusion Of Innovation 72
  • 73. The doctor's relative orientation to his professional colleagues and to patients, inferred from his answer to the following question: How would you rank the importance of these characteristics in recognizing a good doctor in a town like this? The respect in which he is held by his own patients The recognition given him by his local colleagues His general standing in the community The research and publications he has to his credit 67 57 Profession oriented Patient oriented A B C D CDAB, CADB, CBDA, CABD ABCD, ACBD, ACDB, ABDC 10-11-2014 Diffusion Of Innovation 73
  • 74. Fig.1 Relationship of the resulting classification to the date of introduction of the new drug Observation : Profession- oriented doctors generally used the drug earlier than the less profession-oriented ones Profession-oriented doctors in Figure 1 differed from the patient-oriented from the very start almost as much as later on The constant difference between the profession-oriented and patient- oriented doctors suggests that they differ individually in their receptivity to new developments in medicine 10-11-2014 Diffusion Of Innovation 74
  • 75. Fig.2 The results with regard to the network of friendships Observation : The "integrated" doctors-those named as "friends" by three or more of their colleagues-were much faster to introduce tetracycline The integrated doctors were little different from their isolated colleagues at the very beginning; but then their rate accelerated to produce an increasing gap between the curves The accelerating difference between the integrated and isolated doctors suggests a kind of "'snowball" or "chain-reaction' process for the integrated 10-11-2014 Diffusion Of Innovation 75
  • 76. 2 Fig.3 Social connection 2 Professional orientation Observation : Vs. 1 Faster rate of diffusion is observed between the doctors with high social connectivity than those who simply maintained their intrinsically different receptivity as the time went on Thus, the communication channels have a greater influence on the adoption of innovation than the individual attributes leading to adoption of innovation 1 10-11-2014 Diffusion Of Innovation 76
  • 77. s t l o e r B Saga k c b u 10-11-2014 Diffusion Of Innovation 77
  • 78. Whose brain child ? From which year D2C marketing was permitted in US ? LIPITOR “Merck and Bristol-Myers spent 10 years educating doctors to get them to use their drugs, but Lipitor, at lower doses, is a much better deal. It's kind of a marketing coup” -- Kevin Graham (Cardiologist at Minneapolis Heart Institute, Minneapolis) 10-11-2014 Diffusion Of Innovation 78
  • 79. 1997 th Mevacor Zocor Pravachol Lescol TURBOSTATIN >60% increased Efficacy "Those other companies didn't even take us seriously. They didn't think we could be a viable contender" -- Adele Gulfo, (Head of cardiovascular marketing at Warner-Lambert Co.) 10-11-2014 Diffusion Of Innovation 79
  • 80. Warner Pfizer lambert Consumer health Listerine Benadryl allergy pills Halls cough drops Sales approach : Saturation strategy PARKE DAVIS Atorvastatin 10-11-2014 Diffusion Of Innovation 80
  • 81. Positioning  Reduce heart attacks and death through cholesterol lowering capabilities  Ease of use ( no need / ease of dose titration) 72% 10-11-2014 Diffusion Of Innovation 81
  • 82. The beauty of Lipitor’s positioning is that physicians can remain ‘lazy’ by using the starting dose and then forgetting about it, but the goals achieved with Lipitor will be greater than with any other statin -- Carl Seiden, (Analyst from J.P.Morgan) 10-11-2014 Diffusion Of Innovation 82
  • 83. Promotion National cholesterol education program in association with AMA Lipitor was publicized in medical journals and at major medical conventions with pre-market comparative efficacy data Free sampling to KOL after drug approval but before official launch Pre marketing promotions Warner-Lambert and Pfizer implemented an aggressive sampling program, distributing 7.3 million samples to physicians in the first year of launch for a share of voice of slightly over 23% 10-11-2014 Diffusion Of Innovation 83
  • 84. 1997 D2C 10-11-2014 Diffusion Of Innovation 84
  • 85. 10-11-2014 Diffusion Of Innovation 85
  • 86. 10-11-2014 Diffusion Of Innovation 86
  • 87. 10-11-2014 Diffusion Of Innovation 87
  • 88. 1997 D2C Consumer Consumer KOL Don’t Kid Yourself 10-11-2014 Diffusion Of Innovation 88
  • 89. 10-11-2014 Diffusion Of Innovation 89
  • 90. The company was forced to purchase a fully operational manufacturing facility just months after Lipitor launched in an effort to keep up with In my two decades of experience within the pharmaceutical industry, I have never witnessed the launch of a fifth comparable drug to treat a non-symptomatic disease take off as rapidly as Lipitor has Hemant Shah President of HKS & Company demand Manufacturing executives admitted that the market demand was so strong that they exhausted what they thought was a 3-month drug supply virtually overnight. 10-11-2014 Diffusion Of Innovation 90
  • 91. Many observers think Lipitor succeeded because Pfizer sold it hard to the public on television and print. In fact, that is not true. Lipitor had the number one new Rx share of about 34 before Pfizer launched the campaign in 1999 The national advertising created by Bates Advertising worked and Lipitor continued to grow into the $7.6 billion brand it became in the U.S. and achieved $12.8 billion worldwide at its peak. Over the course of its patent life Lipitor sold $131 billion, the largest in drug history 10-11-2014 Diffusion Of Innovation 91
  • 92. PATIENT POURING STRATEGIES Health groups kept lowering the cholesterol targets in national guidelines New research showed the link between cholesterol levels and consequences such as heart attacks MRs repeatedly visited family doctors as well as cardiologists, and blanketed patients with data showing that Lipitor was best at lowering cholesterol MRs stressed to doctors nervous about safety that Lipitor's lowest dose worked as well as rivals' highest doses. MRs gave free samples of the white pills and sometimes bought lunch for the office staff 10-11-2014 Diffusion Of Innovation 92
  • 93. MARKETING OF MADNESS Show me a sane man and I shall cure him for you -Dr.Carl Gustav Jung (Psychiatrist and Psychotherapist) 10-11-2014 Diffusion Of Innovation 93
  • 94. 1 Billion 600% 10-11-2014 Diffusion Of Innovation 94
  • 95. Life Problems As Medical Disorders SHYNESS SOCIAL ANXIETY DISORDER PAXIL LOSS OF A LOVED ONE MAJOR DEPRESSIVE DISORDER PROZAC HOME SICKNESS SEPARATION ANXIETY DISORDER LEXAPRO SUSPECTION PARANOID PERSONALITY DISORDER ZOLOFT HAVING UPS AND DOWNS BIPOLAR DISORDER ABILIFY DISTRACTABILITY ADHD RITALIN/ADDERALL 10-11-2014 Diffusion Of Innovation 95
  • 96. Pharma companies convincing doctors to write their brands…. How to drive patients to the doctors clinics and make them believe that they are sick… Product theatres in psychiatry conferences KOL’s then convinence fellow psychiatrists Psychiatrists in turn influence GP’s for writing the prescriptions Funding of prominent medical journals and Sampling ghost writing Catch physicians young in the medical institutes.Groom them into speakers for your drugs Generate so called KOL’s 10-11-2014 Diffusion Of Innovation 96
  • 97. 10-11-2014 Direct to Consumer advertising Using internet as a channel Mental health screening concepts Diffusion Of Innovation 97 Children magazines Disease Mongering Pharma companies convincing doctors to write their brands…. How to drive patients to the doctors clinics and make them believe that they are sick…
  • 98. API of PROZAC ? Whose molecule ? PROZAC 10-11-2014 Diffusion Of Innovation 98
  • 99. The diffusion curve in the US was strongly influenced by the debates surrounding Prozac The debates about Prozac played some role in creating a resistance to the drug in the UK 10-11-2014 Diffusion Of Innovation 99
  • 100. 1980s ORAFLEX Diet control CNS Chronic diseases 10-11-2014 Diffusion Of Innovation 100
  • 101. 1980s Diet control CNS Chronic diseases Depression Fluoxetine Incidental Weight loss 10-11-2014 Diffusion Of Innovation 101
  • 102. 60% Dieting st Company to release side effects free anti obesity drug would rule the US and UK market 10-11-2014 Diffusion Of Innovation 102
  • 103. Diet Pill Anti Depressant 10-11-2014 Diffusion Of Innovation 103
  • 104. Less common Chills or fever convulsions (seizures) purple or red spots on the skin racing heartbeat excessive hunger overactive reflexes mood or behavior changes unusual tiredness or weakness difficulty with concentration cool pale skin trouble with breathing lack of energy shivering or shaking shakiness or unsteady walk headache increased thirst Drowsiness Dizziness Feeling nervous Sneezing Sore throat Side effects Nausea Upset stomach Constipation increased sweating Sleep problems dark urine Decreased sex drive Weight changes Impotence Increased appetite Dry mouth restlessness Hives itching bleeding gums inability to sit still confusion skin rash diarrhea Rare Anxiety cold sweats dryness of the mouth unusual or incomplete body or facial movements talking, feeling, and acting with excitement and activity you cannot control fast or irregular heartbeat back or leg pains chest pain or discomfort blood in the urine or stools difficulty with swallowing blindness bloody, black, or tarry stools continuing vomiting blistering, peeling, or loosening of the skin bloating cough or dry cough decreased urine output decreased vision constipation depression severe sleepiness clay-colored stools blurred vision difficulty with breathing slurred speech rapid weight gain blue-yellow color blindness dizziness or lightheadedness pinpoint red spots on the skin redness, tenderness, itching, burning, or peeling of the skin sores, ulcers, or white spots on the lips or in the mouth pain in the ankles severe muscle stiffness 10-11-2014 Diffusion Of Innovation 104
  • 105. Diffusion Communication Channels Heterophily Homophily Dr. - Dr. Co. – Dr. C - C Co. - C Dr. - C 10-11-2014 Diffusion Of Innovation 105
  • 106. MARKETING CAMPAIGN FOR DOCTORS The kind of positioning Eli Lilly did for Prozac, shifted Prozac, from Psychiatrist’s inpatient dept. to GP’s outpatient dept. 10-11-2014 Diffusion Of Innovation 106
  • 107. GP (KOLs) Psychiatrist Ghost writing Influence 10-11-2014 Diffusion Of Innovation 107
  • 108. 96 hr. of CME Depression = Chronic disease DSM produced for GP Samples Prozac = alternative for Talk therapy GP 10-11-2014 Diffusion Of Innovation 108
  • 109. 96 hr. of CME Depression = Chronic disease DSM produced for GP Samples Prozac = alternative for Talk therapy Top of the mind recall New patients poured in Continue therapy to avoid relapse GP 2/3rd of total prescriptions 10-11-2014 Diffusion Of Innovation 109
  • 110. Off label uses Diabetics and migraine Generalised Anxiety disorder Dysthymia Personality disorders Stage fright Social phobia Premenstrual Syndrome Eating disorders Borderline personality disorder “You can give Prozac to anyone you want, in fact, I have even added it to my watering can and found geraniums grow better on it.” - Mauro and Breggin 1994:47 10-11-2014 Diffusion Of Innovation 110
  • 111. Off label uses New indications Diabetics and migraine Generalised Anxiety disorder Dysthymia Personality disorders Stage fright Social phobia Premenstrual Syndrome Eating disorders Borderline personality disorder OCD Bulimia “You can give Prozac to anyone you want, in fact, I have even added it to my watering can and found geraniums grow better on it.” - Mauro and Breggin 1994:47 10-11-2014 Diffusion Of Innovation 111
  • 112. Childhood Depression 600,000 children Orange Mint 10-11-2014 Diffusion Of Innovation 112
  • 113. Ecstasy API Of Ectasy ? Mood is a light bulb and serotonin is the voltage which keeps it glowing. Prozac restores the voltage and brightens to normal. Ecstasy produces blinding flash as bulb burns out -Dr. Simpson (Medical Director, Eli Lilly) 10-11-2014 Diffusion Of Innovation 113
  • 114. D2C Company makes Products People make Brands 10-11-2014 Diffusion Of Innovation 114
  • 115. TV advertisement slots were increased from 2hrs. P.a to 16hrs.p.a You have a problem ? We have a solution Talk to your Dr. 10-11-2014 Diffusion Of Innovation 115
  • 116. Teen Screen camp School Children American Soldiers Camp in Malls Foster Children E-Forms 10-11-2014 Diffusion Of Innovation 116
  • 117. Cultural Construct of Prozac 10-11-2014 Diffusion Of Innovation 117
  • 118. A fashionable accessory designer drug, for trend highfliers, seeking to ease the anxiety of modern living Brand Personality A ‘Go for it’ drug for individualistic and independent personality people in 1990s • Self confidence • Social poise • Energy • Assertiveness • Independent 10-11-2014 Diffusion Of Innovation 118
  • 119. Recognise the person? Madness was the new Sexy Kurt Cobain got a wider fame as a suicide victim than a musician at that time 10-11-2014 Diffusion Of Innovation 119
  • 120. Prozac : Emblem of vigour and emotional individualism Prozac : Just another antidepressant And a mind deadening American fadd 10-11-2014 Diffusion Of Innovation 120
  • 121. 10-11-2014 Diffusion Of Innovation 121
  • 122. Dr.Peter D. Kramer (Psychiatrist) Prozac is not a drug and did not induce false synthetic experiences, but merely removed obstacles to feeling more content and relaxed 10-11-2014 Diffusion Of Innovation 122
  • 123. Dr.Peter D. Kramer (Psychiatrist) Prozac has become a feminist drug as it’s major users are women for the main reason being, it frees women from inhibiting consequences of trauma 10-11-2014 Diffusion Of Innovation 123
  • 124. Prozac thus slotted neatly into a classic elixir paradigm, thus being viewed as a drug which enabled people to realize their aspirations painlessly Eli Lilly criticized Dr.Kramer for creating unrealistic expectations(to be on safe side) by describing him as a part time psychiatrist and part time writer, and his book being based on personal observations and not on a controlled study 10-11-2014 Diffusion Of Innovation 124
  • 125. But by this time, Prozac was diffused extensively in the society pouring a lot of profit to Eli Lilly 10-11-2014 Diffusion Of Innovation 125
  • 126. REFFERENCES • The Diffusion of an Innovation Among PhysiciansAuthor(s): James Coleman, Elihu Katz and Herbert MenzelSource: Sociometry, Vol. 20, No. 4 (Dec., 1957), pp. 253-270 • Lipitor: At the Heart of Warner-Lambert – university of Michigan business school • Diffusion of innovation – Everett Rogers • The University of Hull - Managing the Diffusion of Medical Technologies 10-11-2014 Diffusion Of Innovation 126
  • 127. THANK YOU 10-11-2014 Diffusion Of Innovation 127

Editor's Notes

  1. But results of larger studies vindicated Dr. Black's strategy. In October 1994, he and his colleagues made the first public presentation of human trial data of the compound -- now known as atorvastatin -- at a scientific conference in Montreal. The results were so stunning a senior Merck official stood up to suggest the drug be called "turbostatin."