innovationand diffusion
DESCRIPTION
GoodTRANSCRIPT
![Page 1: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/1.jpg)
Copyright © 2006Pearson Education Canada Inc.
Chapter 13Consumer Influence and the
Diffusion of Innovations
Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
![Page 2: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/2.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-2
Opinion Leadership
The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients
![Page 3: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/3.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-3
What is Opinion Leadership?
Opinion Leader
Opinion Receiver
Opinion Seeker
![Page 4: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/4.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-4
Special Issues Opinion leaders are four times more likely to
be asked about political issues, three times more likely to be asked about computers or investments, and twice as likely to be asked about restaurants
Information seekers seek a “strong-tie” source when they know little about a topic, and “weak-tie” sources when they have some knowledge
![Page 5: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/5.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-5
Purchase Pals and Surrogate Buyers
Purchase Pals– Information sources who accompany a
consumer on a shopping trip
Surrogate Buyers– Professional buyers who help consumers with
their purchases
![Page 6: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/6.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-6
(continued)
![Page 7: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/7.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-7
Figure 13-1 (continued)
![Page 8: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/8.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-8
Market MavenMarket Maven
Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.
![Page 9: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/9.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-9
Motivations Behind Opinion Leadership
The Needs of Opinion Leaders– To reduce their own post-purchase dissonance– For tangential personal benefits– Because of high levels of product involvement– Because of message involvement
» continued
![Page 10: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/10.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-10
Motivations Behind Opinion Leadership
Motivations of Opinion Seekers– To obtain new product or new usage
information– To reduce their risk by getting knowledge – To reduce search time– To receive the approval of the opinion leader
![Page 11: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/11.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-11
Reasons for the Effectiveness of Opinion Leadership
Credibility Positive and Negative Product Information Information and Advice Opinion Leadership Is Category-Specific Opinion Leadership Is a Two-way Street
![Page 12: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/12.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-12
![Page 13: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/13.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-13
![Page 14: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/14.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-14
![Page 15: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/15.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-15
The Interpersonal Flow of Communication
Two-Step Flow– A communication model that portrays opinion
leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.
Multi-step Flow– A revision of the traditional two-step theory
that shows multiple communication flows
![Page 16: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/16.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-16
![Page 17: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/17.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-17
![Page 18: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/18.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-18
Measuring Opinion Leadership
SELF-DESIGNATING METHOD
“Do you influence other people in their selection of products?”
Each respondent is asked a series of questions to determine the degree to which he or she perceives himself or herself to be an opinion leader.
OPINION LEADERSHIP OPINION LEADERSHIP MEASUREMENT MEASUREMENT METHODMETHOD
SAMPLE SAMPLE QUESTIONS ASKEDQUESTIONS ASKED
DESCRIPTION OF METHODDESCRIPTION OF METHOD
SOCIOMETRIC METHOD
Members of a social system are asked to identify to whom they give advice and to whom they go for advice.
“Whom do you ask?”“Who asks you for info about that product category?”
![Page 19: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/19.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-19
Measuring Opinion Leadership -continued
OPINION OPINION LEADERSHIP LEADERSHIP MEASUREMENT MEASUREMENT METHODMETHOD
SAMPLE SAMPLE QUESTIONS QUESTIONS
ASKEDASKEDDESCRIPTION OF METHODDESCRIPTION OF METHOD
KEY INFORMANT METHOD
“Who are the most influential people in the group?”
Carefully selected key informants in a social system are asked to designate opinion leaders.
Artificially places individuals in a position to act as opinion leaders and measures results of their efforts.
“Have you tried the product?
OBJECTIVE METHOD
![Page 20: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/20.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-20
Opinion Leadership and Marketing Strategy
Identify and provide samples to opinion leaders
Design programs to stimulate opinion leadership
Develop ads simulating opinion leadership Create opinion leaders Control negative word-of-mouth
communication
![Page 21: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/21.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-21
Diffusion ProcessDiffusion Process
The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.
![Page 22: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/22.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-22
Adoption ProcessAdoption Process
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.
![Page 23: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/23.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-23
Defining Innovations
Firm-oriented definitions Product-oriented definitions Market-oriented definitions Consumer-oriented definitions
![Page 24: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/24.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-24
Product-Oriented Definitions
Continuous Innovation
Dynamically Continuous Innovation
Discontinuous Innovation
![Page 25: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/25.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-25
Factors That Affect the Diffusion of Innovations
The Innovation The Channels of Communication The Social System Time
![Page 26: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/26.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-26
Product Characteristics That Influence Diffusion
Relative Advantage Compatibility Complexity Trialability Observability Felt Need Risk
![Page 27: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/27.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-27
Social System and Diffusion Does the target market have:
– A positive attitude towards change?– Technological skill?– A general respect for education and science?– A focus on rational and ordered social
relationship?– An outreach perspective?– The ability to accept different roles?
![Page 28: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/28.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-28
Time and Diffusion
Purchase Time Adopter Categories Rate of Adoption
![Page 29: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/29.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-29
Adopter CategoriesAdopter Categories
A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.
![Page 30: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/30.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-30
![Page 31: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/31.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-31
Innovators: Description
• 2.5% of population• Venturesome• Very eager to try new ideas• Acceptable if risk is daring• More cosmopolite social relationships• Communicates with other innovators
![Page 32: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/32.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-32
Early Adopters: Description
• 13.5% of population• Respected• More integrated into the local social system• The persons to check with before adopting a new
idea• Category contains greatest number of opinion
leaders• Are role models
![Page 33: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/33.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-33
Early Majority: Description
• 34% of population• Deliberate• Adopt new ideas just prior to the average time• Seldom hold leadership positions• Deliberate for some time before adopting
![Page 34: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/34.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-34
Late Majority: Description
• 34% of population• Skeptical• Adopt new ideas just after the average time• Adopting may be both an economic necessity and
a reaction to peer pressures• Innovations approached cautiously
![Page 35: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/35.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-35
Laggards: Description
• 16% of population• Traditional• The last people to adopt an innovation• Most “localite” in outlook• Oriented to the past• Suspicious of the new
![Page 36: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/36.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-36
Rate of Adoption
Insert Figure 13-16 A, B and C as small graphs; if that is not possible, then have one or two of them.
![Page 37: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/37.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-37
![Page 38: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/38.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-38
![Page 39: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/39.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-39
The Profile of a Consumer Innovator
Interest in the Product Category The Innovator Is an Opinion Leader Personality Traits Purchase and consumption characteristics Media Habits Social Characteristics Demographic Characteristics Are There Generalized Consumer Innovators?
![Page 40: Innovationand Diffusion](https://reader030.vdocuments.net/reader030/viewer/2022033101/563dbaef550346aa9aa8d9ce/html5/thumbnails/40.jpg)
Copyright © 2006 Pearson Education Canada Inc.13-40
Diffusion Process and Marketing Strategy
Identify diffusion inhibitors and find ways to compensate for these
Identify innovators and early adopters and cater to them
Move consumers from awareness to adoption
Make effective use of word-of-mouth communications