The Adoption Process

■ The decision stages that focus on

internal consumer influences
(psychological/social) that lead to
innovation acceptance/rejection
KNOWLEDGE PERSUASION DECISION

TIME

CONFIRMATION IMPLEMENTATION
Steps in
the
Adoption
Process
 Variations from the
Normal Adoption Curve
The Dif fus ion Proces s …
has identi fi ed adopter
typol ogi es that are linked to
marketi ng strategi es.
2.5% Innovators

13.5% Early Adopters

34% Late Majority 34% Early Majority

 Diffusion Process,
Adopter Categories
■ INNOVATORS - are first to buy
and typically described as
venturesome, younger, well
educated, financially stable, and
willing to take risks.

■ EARLY ADOPTERS - are local

opinion leaders who read
magazines and who are integrate
 Diffusion Process,
Adopter Categories
■ EARLY MAJORITY - solid, middle-
class consumers who are more
deliberate and cautious

■ LATE MAJORITY - described as

older, more conservative,
traditional, and skeptical of new
products
 Diffusion Process,
Adopter Categories
■ Laggards OK, we will
– Resist change buy X.
– Conservative If I
– Like tradition have to
buy it I
– Often older & lower in will.
socioeconomic status

■ Nonadopters
– Refuse to change
No
way!
Diffusion of innovation research traces the
spread of product acceptance across its
productMarket
life cycle
Market Market Sales
Introduction Growth Maturity Decline

Total Industry
Sales

Total Industry
Profit
$0
Time
–
Stage customers:

Early Adopters Early Majority Majority Laggards

 Speed of Diffusion

is influenced by…

* Competitive Intensity (+)

* Good Supplier Reputation (+)
* Standardization of Technology (+)
* Vertical ( ) Channel Coordination
(+)
• ($) Resource Commitments (+)
• Brand Loyalty
 Two-Step Flow of
Communication
and Adopter Categories

Innovators Early Early

adopters majority

Potential target
audiences

Product Category Opinion recipient 1

Company Message
Opinion Opinion recipient 2
from mass media
leader(s) Opinion recipient 3
 Characteristics of Opinion
Leaders
in contrast with their followers

■ More like, than unlike, their followers

■ More technically competent
■ More socially accessible
■ More cosmopolitan
■ More innovative (receptive to change)
■ Higher media exposure (more informed)
■ Higher social status
■ More conformist with social norms and
 Why Some New Products Fail
and Others Succeed
Absolute failure Relative failure

80 to 90% Fail. Why?

■ Unreal time pressure & vested interest
groups
■ Absorption in process: lack of objectivity,
courage (risk)
■ Product Deficiencies (Technical or Design
Problems)
■ Inadequate research (Overestimation of
Market Size)
■ Poor Execution of Plans (Promotion,
Distribution, Price, poor timing, etcetera)
 Why Some New Products Fail
and Others Succeed
80 to 90% Fail. Why?
■ #1. Performance & Price

New product failures generally offer the

same or worse performance … than
competing products with … the same or
higher price
■ #2. Inadequate Market Analysis
New Product Success
• Offer a unique benefit (a differential advantage)
• Solve a consumers problem or provide an
opportunity, a reward