Factors affecting the rate of diffusion and

consumer adoption of newly launched products and services

What is consumer adoption???

Adoption is an individual’s decision to become a regular user of a product

Factors Influencing the Adoption Process

1.Differences in individual readiness to try new products

*technology enthusiasts

*enjoy tinkering with new products and mastering their intricacies

*are happy to conduct alpha and beta testing and report on early weaknesses

Early adopters are opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage

Early majority are deliberate pragmatists who adopt the new technology when its benefits are proven and a lot of adoption has already taken place.

Late majority are skeptical conservatives who are risk averse , technology shy , and price sensitive

.

2.Personal influence

The effect one person has on another’s attitude or purchase probability

It has more power over late than early adopters and in risky situations

3.CHARACTERISTICS OF THE INNOVATION

Some products catch on immediately whereas others take a long time to gain acceptance

Five characteristics influence an innovation’s rate of adoption

1.Relative advantage

3.Compatibility4.Complexity5.Divisibility

2.Communicability

relative advantageRELATIVE ADVANTAGE

the degree to which the innovation appears superior to existing products

the degree to which the innovation matches the values and experiences of the individual

Compatibility

the degree to which the innovation is difficult to understand or useComplexity

the degree to which the innovation can be tried on a limited basis

Divisibility

the degree to which the benefits of use are observable or describable to others

communicability

4.ORGANIZATIONS READINESS TO ADOPT INNOVATIONS