marketing communications and new product adoption 6
TRANSCRIPT
Marketing Communications and New Product Adoption
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Case 1: New Product AdoptionCase 1: New Product AdoptionThe InternetThe Internet
• 2001: 63% U.S. HH own computer
57% HH connected to Internet
How long will it take for Internet to reach 100% penetration?
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Case 2: New Product AdoptionCase 2: New Product AdoptionTelevisionTelevision
• 1947-1955: Took 8 years to reach 63% penetration
• Took another 30 years to reach current penetration of 98%
• Would you expect Internet to reach same 98% level? How long would it take? Faster or slower than for TV?
• What are some considerations that shed light on these questions?
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New Product Adoption:New Product Adoption:The Internet vs. TVThe Internet vs. TV
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New Product Adoption:New Product Adoption:The Internet vs. TVThe Internet vs. TV
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New Products & InnovationNew Products & Innovation
New flavors, sizes, packages
Annual new models in cars;
New fashions
First introduction of compact cars;
Color television
Invention of computer;
Jet aircraft
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Adoption ProcessAdoption Process
Innovation
Related
Characteristics
Relative
Advantage
Compatibility
Complexity
Trialability
Observability
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Relative AdvantageRelative Advantage
• A product innovation is perceived as better than existing alternatives
• Positively correlated with an innovation’s adoption rate
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Relative AdvantageRelative Advantage
An illustration of
relative advantage
Relative AdvantageRelative Advantage
Another illustration
of relative advantage
CompatibilityCompatibility
• An innovation is perceived to fit into a person’s way of doing things
• The greater compatibility, the more rapid a product’s rate of adoption
• Overcome perception of incompatibility through:
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CompatibilityCompatibility
A compatibility
problem
ComplexityComplexity
• An innovation’s degree of perceived difficulty
• The more difficult, the slower the rate of adoption
• Examples?
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ComplexityComplexity
Offsetting perceived
product complexity
TrialabilityTrialability
• An innovation can be used on a limited basis prior to making a full blown commitment
• The trial experience serves to reduce the risk of a consumer’s being dissatisfied with a product after having permanently committed to it through outright purchase
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Adoption ProcessAdoption Process
An effort to
promote
vicarious trial
ObservabilityObservability
• The product user or other people can observe the positive effects of new product usage
• Higher the visibility, more rapid the adoption rate
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Adoption ProcessAdoption Process
Amazon
Kindle 2.0?
Relative
Advantage
Compatibility
Complexity
Trialability
Observability
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Case 3: New Product AdoptionCase 3: New Product AdoptionGo-GurtGo-Gurt
How to get kids & teens to eat yogurt?
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Stimulating Stimulating Word of Mouth InfluenceWord of Mouth Influence
• Impersonal sourcesImpersonal sources:
• Personal sourcesPersonal sources:
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Stimulating Stimulating Word of Mouth InfluenceWord of Mouth Influence
• Positive word-of-mouth communication is critical in the success of a new product or service
• Unfavorable WOM have devastating effects because consumers seem to place more weight on negative information in making evaluations
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Opinion LeaderOpinion Leader
• A person who frequently influences other individuals’ attitudes or overt behavior
• An informer, persuader, and confirmer
• Influence is typically limited to one or several consumption topics
• Influence moves horizontally through a social class (not across)
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Opinion LeadersOpinion Leaders
Characteristics
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Opinion LeadersOpinion Leaders
Market Mavens
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Tactics: “Seeding the Market”Tactics: “Seeding the Market”
• Supplying advance samples in key markets to people who are likely to be influential.
• Finding cheerleaders who will get the talk started.
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Creating “BUZZ”Creating “BUZZ”
• Law of the Few
• Stickiness Factor
• Power of Context
Igniting Explosive DemandIgniting Explosive Demand
1.Design the product to be unique, visible
2.Select and seed the vanguard
3.Ration supply
4.Use celebrity icons
5.Tap the power of lists
6. Nurture the grass roots