This topic is belong consumer behavior. This presentation describe diffusion process & innovation of adoption process. This presentation describe types of innovation, meaning of new products. This topics also describe the product feature that describes innovation.
2. • Diffusion of innovations is the macro process by which the
acceptance of an innovation (i.e., a new product, new service, new
idea, or new practice) takes place among members of a social
system (or market segments), over time. This process includes
four elements:
1. The Innovation: new product, model, or service.
2. The Channels of Communication: informal or formal,
impersonal or personal groups.
3. The social system: a market segment.
4. Time.
• In contrast, the innovation adoption process is a micro process
that focuses on the stages through which an individual consumer
passes when deciding to accept or reject a new product.
3. The Meaning of “New” Products
Marketers need to differentiate between emerging markets and
developed markets on what consumers perceive as “new.” A touch of
reality is required when conventional definitions of new products are
applied to an emerging market like India, especially mass markets in
several product categories. Value, convenience, and cultural
associations are factors that may, in combination, work in the Indian
context
Vatika’s hair oil with a combination of lime and coconut ingredients can
be associated with the cultural practice of using such ingredients for
hair care
Chik shampoo introduced the jasmine variant (jasmine flower is a part
of the hair grooming ritual in south India).
Nokia introduced a mobile phone model at a lower price point with
features that included a torch and FM radio. In rural areas, carrying a
torch is a cultural practice
There are many other examples of newness among Indian brands that have three
4. Types of Innovations
• The definition of what is a “new product” varies among product developers
and marketing strategists. From a consumer perspective, an innovation
represents any item that the consumer perceives as new.
1. A continuous innovation has the least disruptive influence on established
behavior. It involves the introduction of a modified product rather than a
totally new product. Examples include the newly redesigned Apple MacBook,
the latest version of Microsoft Office, reduced-fat Oreo cookies, is an example
of continuous innovation.
For example, if an organization that used to store its data in paper
file format, then moved to digital CRM storage, and now keeps
everything on the cloud for faster customer file retrieval, that is
continuous innovation.
5. 1. A dynamically continuous innovation is somewhat more
disruptive than a continuous innovation but still does not alter
established behavior. It may involve the creation of a new
product or the modification of an existing. Examples include
digital cameras, digital video recorders.
The launch of Xbox by Microsoft, extending the reach of the company to
fulfil an entirely different need to what Microsoft was already doing.
• A discontinuous innovation requires consumers to adopt new
behavior. Examples include airplanes, radios, TVs, automobiles,
fax machines, PCs, videocassette recorders, medical self-test kits,
and the Internet.
Disposable sanitizing tissues to be used on the body instead of the
shower or bath.
6. Product Features That Affect Adoption
Not all new products are equally likely to be adopted by consumers.
Some products catch on very quickly (e.g., affordable cell phones),
whereas others take a very long time to gain acceptance or never seem
to achieve widespread consumer acceptance (e.g., electric cars).
Diffusion researchers have identified five product characteristics that
influence consumer acceptance of new products, which are detailed
next
Relative advantage is the degree to which potential customers
perceive a new product as superior to existing substitutes. For example,
cellular telephones enable users to be in communication with the
world and allows users to both receive and place calls and text
messages
Compatibility is the degree to which potential consumers feel a new
product is consistent with their present needs, values, and practices.
Compatibility varies across cultures.
7. For instance, an advantage of 3M’s Scotch Pop-up Tape Strips is that
they are easier to use than roll tape for certain tasks (such as wrapping
gifts), yet they represent no new learning for the user.
Complexity—the degree to which a new product is difficult to
understand or use—affects product acceptance. Clearly, the easier it is
to understand and use a product, the more likely that product is to be
accepted
For example, the acceptance of such convenience foods as frozen
french fries, instant puddings, and microwave dinners is generally due
to their ease of preparation and use.
The issue of complexity is especially important when attempting to gain
market acceptance for high-tech consumer prod- ucts.
Trialability refers to the degree to which a new product can be tried on
a limited basis. The greater the opportunity to try a new product, the
easier it is for con- sumers to evaluate the product and ultimately adopt
it. In general, frequently purchased household products tend to have
qualities that make trial relatively easy, such as the ability to purchase a
8. • Observability (communicability)
is the ease with which a product’s benefits or attributes can be
observed, imagined, or described to potential consumers. Products
that have a high degree of social visibility, such as fashion items,
are more easily diffused than products that are used in private,
such as a new type of deodorant. Similarly, a tangible product is
promoted more easily than an intangible product (such as a
service).
