factors affecting diffusion and absorption process
TRANSCRIPT
Factors affecting rate of diffusion and consumer adoption
Adoption is an individual’s decision to become a regular
user of a product and is followed by the consumer-
loyalty process.
Stages in the adoption process
AwarenessInterestEvaluationTrialAdoption
Factors influencing the adoption process
readiness to try new products and personal influence
characteristics of the innovation
organisation’s readiness to adopt innovations
Diffusion and adoption
Readiness to try new products and personal
influencePerson’s level of innovativeness is the degree to which an individual is relatively earlier in adopting new ideas than the other members of his social system.Five adopter groups:
• Innovators (technology enthusiasts)• Early adopters (opinion leaders)• Early majority (deliberate pragmatists)• Late majority (skeptical conservatives)• Laggards (tradition-bound)
Personal influence
NIKETo gain “street card” with teen skaters, it sold exclusively to independent shops, advertised nowhere but sports
magazines.
Characteristics of the innovation
Five characteristics influence an innovation’s rate of adoption:Relative advantageComparabilityComplexityDivisibilityCommunicability
Organisation’s readiness to adopt
innovators• Variables in the organisation’s environment :
Community progressivenessCommunity income
• Variables in organisation:SizeProfitsPressure to change
• Variables in the administrators:• Education level
AgeSophistication
APPLEMarketing excellence like none other