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This document discusses Rogers' Five Factors, framework for analyzing and understanding the diffusion and adoption of product innovations.
Businesses are interested in understanding how innovations diffuse, so that they can better predict and manage this consumer adoption. A popular framework for this is the Consumer Adoption Lifecycle (or Product Lifecycle), which traces the adoption of a product as it passes through 5 categories of consumers. This is a viewpoint that focuses on people.
Rogers' Five Factors is a product-focused framework that should be used in conjunction with the Consumer Adoption Lifecycle. Developed by Everett Rogers, this framework proposes that the rate of innovation diffusion is largely driven by 5 product-based factors:
1. Relative advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability
This document explains the framework, provides examples, shows how to use this framework with the Production Adoption Lifecycle, and includes PowerPoint templates that can be leveraged in your own analysis.
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Rogers' Five Factors
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Presentation Design Service
Rogers’ Five Factors
Product-focused Framework to
Innovation Adoption
March 3, 2013
Rogers’ Five Factors is a product-focused framework for analyzing innovation
adoption and diffusion. It is often used in conjunction with the people-focused
framework, Consumer Adoption Lifecycle (or Product Lifecycle). This document
explains Rogers’ Five Factors, provides examples, and templates to be used in your
own analysis.
ORIGINAL PROJECT DETAILS
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Contents
Overview 4
Rogers’ Five Factors 9
Case Example 17
Summary 21
Templates 24
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Rogers’ Five Factors is a product-focused framework for understanding the
diffusion and adoption of new products
Executive Summary
Businesses have long been interested in the diffusion and adoption of product innovations. They are
interested in understanding how innovations diffuse, so that they can better predict and manage this
consumer adoption. A popular framework for this is the Consumer Adoption Lifecycle (or Product
Lifecycle), which traces the adoption of a product as it passes through 5 categories of consumers. This
is a viewpoint that focuses on people.
This document discusses a product-focused framework, called Rogers’ Five Factors. Developed by
Everett Rogers, this framework proposes that the rate of innovation diffusion is largely driven by 5
product-based factors:
• Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability
This document explains the framework, provides examples, and includes PowerPoint templates that can
be leveraged in your own analysis.
1
2
3
4
5
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The diagram below illustrates the Production Adoption Lifecycle and
shows the percentage of consumers that fall into each segment
Product Adoption Lifecycle
Early
Adopters
Early Majority Late Majority Laggards
Chasm
Percentage of
Consumers
2.5% 13.5% 34% 34% 16%
time
market
share
Innovators
50%
25%
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Contents
Overview
Rogers’ Five Factors
Case Example
Summary
Templates
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Perceptions matter. For instance, when evaluating
―relative advantage,‖ you are really evaluating
―relative advantage as perceived‖ by the potential
adopter. Therefore, one must manage not only the
objective product characteristics, but also those
characteristics as perceived by consumers.
It is critical to realize the simple truth that perceptions matter—it is not
what is true, but what is perceived to be true
Rogers’ Five Factors – Important Considerations
Relative
Advantage Compatibility
Complexity
Observability
Trialability
In considering these 5 factors, it is important to
consider at least these two issues:
1 Innovation is relative to the consumer group. In
other words, the product or idea only has to be
perceived as new by a given set of people for it be
considered an innovation for that set. For instance, a
product that is well entrenched in one culture could
be viewed as highly innovative in another culture if
it’s perceived as new by them.
2
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Compatibility measures the degree a new product is
consistent with existing ideas and beliefs
Factor 2. Compatibility
As the Compatibility of an innovation with existing concepts, habits, and experiences
increases, the rate of adoption also increases.
Source: Note on Innovation Diffusion: Rogers’ Five Factors, Harvard Business School Publishing
Relative
Advantage
Compatibility
Complexity
Observability
Trialability
• Compatibility is the degree in which an innovation is perceived as consistent with existing
values and experiences of the potential adopter
• This compatibility can be with any of the following:
• Previously introduced ideas
• Values and beliefs
• One’s needs
• In short, being compatible with existing concepts is less threatening, seems more familiar,
and fits more closely with a person’s impressions of the way things ought to be
• It is important to note that we might want to avoid compatibility with previous innovations
that failed
DESCRIPTION
EXAMPLES
• People expect that fine wines will be in
sealed cork stoppers, despite the fact that
about 10% of fine wines are spoiled due
to faulty corks
• As a result, there is limited
acceptance of the twist-off metal cap,
despite it reducing such spoilage
• When concentrated liquid laundry
detergent (requiring half the dosage)
came out, consumers were using more
dosage than necessary
• They were locked into their previous
method of measuring laundry
detergent and not confident that the
newer product could be twice as
effective
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Triability measures the degree a new product can be
tested out before purchase
Factor 4. Trialability
As the Trialability of a product increases, the rate of product adoption also increases.
Source: Note on Innovation Diffusion: Rogers’ Five Factors, Harvard Business School Publishing
Relative
Advantage
Compatibility
Complexity
Observability
Trialability
• Trialability is the degree to which an innovation may be experimented with a limited basis
• By being able to try and test a product, the consumer can discover the personal relevance
of that product, thus dispelling uncertainty or apprehension in the process
• This factor is most important and relevant when its in the early life of the innovation—i.e.
when uncertainty about the benefits of a product is at the highest
• This factor is also very important for higher-risk products—i.e. those that present a major
sacrifice of time, money, or effort
DESCRIPTION
EXAMPLES
• Examples include offering free samples of
consumer packaged goods, allowing test
drives of automobiles, setting up in-store
demos of popular consumer electronics
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Contents
Overview
Rogers’ Five Factors
Case Example
Summary
Templates
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… we see in its early years, it had no/minimal Relative Advantage, low
Compatibility, high perceived Complexity, and very limited Trialability…
Case Study – Telephone Adoption (2 of 3)
Source: Note on Innovation Diffusion: Rogers’ Five Factors, Harvard Business School Publishing
Compatibility
• Today, the telephone seems highly compatible with our values,
norms, and ideas
• However, in the late 1800s, the thought of a voice emanating out
of a metal box was unsettling—even frightening
• Furthermore, the already adopted telegraph had the distinct
advantage of a permanent ―hard copy‖ of a loved one’s or
client’s words
2
Complexity
• While the telephone was simple to use, it was incredibly
complex to understand
• The result was a set of concerns that could hinder adoption—
e.g. Can it transmit diseases? Can I get electrocuted? Does it
speak my language?
3
Trialability
• Originally, the telephone was limited to the very wealthy and to
high-end businesses
• The typical consumer knew few people who owned a telephone,
thus limiting the ability to test and learn about the telephone
4
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Contents
Overview
Rogers’ Five Factors
Case Example
Summary
Templates
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The diagram below summarizes how each of the Five Factors relates to
product innovation
Five Factors Relation to Adoption
Source: Note on Innovation Diffusion: Rogers’ Five Factors, Harvard Business School Publishing
RELATION TO INNOVATION
Relative Advantage
• As the Relative Advantage of a product increases, the rate
of adoption for the innovation also increases
Compatibility
• As the Compatibility of a product with existing concepts,
habits, and experiences increases, the rate of product
adoption also increases
Complexity
• As the perceived complexity of an innovation increases,
the rate of adoption decreases
Trialability
• As the trialability of a product increases, the rate of
product adoption also increases
Observability
• The more visible or observable the usage and ouctome of
an innovation, the greater the rate of product adoption
1
2
3
4
5
RELATIONSHIP
DIRECT
DIRECT
INVERSE
DIRECT
DIRECT
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Headline
Rogers’ Five Factors – Template
Relative Advantage
• Filler text
Compatibility
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Complexity
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Trialability
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Observability
• Filler text
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4
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STATUS
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Headline
Rogers’ Five Factors – Template (Alternate)
Relative
Advantage
2
3
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5
4
Compatibility
Complexity
Observability
Trialability
• Filler text
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