cb unit-viii (consumer influence & diffusion of innovation)

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By :

Prof. Amit Kumar

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Course: Consumer Behavior

Unit-1 Consumer in the Marketplace

Unit-2 Models of Consumer Behavior

Unit-3 Cultural Influences on Consumer Decision making

Unit-4 Sociological Influences on Consumer Decision making

Unit-5 Personal / Individual Influences on Decision making

Unit-6 Psychological Influences on Decision making

Unit-7 Consumer Decision Making Process

Unit-8 Consumer Influence & Diffusion of Innovation

Consumer Behavior

IILM-Graduate School of Management

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Consumer Behavior Consumer Influence & Diffusion of Innovation


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• Think of an innovation in your field.

• Describe different groups of employees in your organization who would respond early and favorably, as well as later and unfavorably.

• What are the differences between these groups?

• How could you use this information to market the innovation to them more effectively?

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In today’s competitive context, markers are not only concerned with launching

brands but also with how consumer accept them in the marketplace.



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1. How consumers accept new products and brands (specially the target segment of consumers) and

2. How they accept a set of marketing mix elements formulated for a brand over a period of time.

Traditionally diffusion of innovation has been concerned only with new products, the concept can be applied to

existing products and brands.



Diffusion of Innovation is Associated With:

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New products can be divided into:1. Continuous innovation;2. Dynamically continuous innovation;3. Discontinuous innovation;



Defining “New” Products

The division of ‘new’ among products launched inmarket is based on two aspects:

1. The changes required in consumer behavior to use the innovation;

2. Degree of innovation;

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1. Discontinuous Innovation

• Aero planes, computers and telephones werediscontinuous innovations at the period of timewhen they were invented,

• As both the degree of innovation as well as the degree of changes required in consumer behavior in adapting to these innovations was high.




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2. Dynamically Continuous Innovation

• When buying a digital camera or considering Internet shopping, the change in behavior on the part of the consumers is moderate as is the degree of innovation.




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3. Continuous Innovation

• When the remote switch of a TV is considered, consumers have to make only a small change with regard to their behavior (or practice) to use the remote along with their TV.

• Hence, this is a continuous innovation.




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Diffusion can be applied to existing products.

1. Santro, in the automobile sector diffused itself in the Indian market by offerings new features and design.

2. Whirlpool was able to diffuse itself in refrigerators by offering ‘Indianized’ features based on research.

3. LG proposition (USP) ina) Refrigerator as ‘preservation of nutrition’b) Microwave ovens as ‘health’c) Washing machines as ‘fabric care’d) Air-conditioners as ‘healthy air’e) TV as ‘relaxed viewing’



Diffusion and Existing Products

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Brands that did not Diffuse in India1 Hina peas frozen green peas from

HLL (sixties)Ahead of time?

2 Merlin Home Theatre (eighties) Ahead of time?

3 An apple drink from Cadbury (eighties)

Ahead of time?

4 Dollops Ice Cream Positioning problems?

5 Greatshake-the soya drink from Godrej

Cultural habits?

6 Nikytasha 3D TV Competitive advantage?

7 Paltab tablet-based soft-drink Boots (sixties)

Was there a need at from all?

8 Four-stroke scooters (Legend & Spectra)

Value proposition/ CA

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cb unit-viii (consumer influence & diffusion of innovation)

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