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CB11: SOLOWHEEL - The Laptop Vehicle of Tomorrow! (Stages in Adoption…
CB11: SOLOWHEEL - The Laptop Vehicle of Tomorrow!
Diffusion of Innovation/ 5 Established Adopter Categories
Late Majority
Makes up
34%
of adopters
Motivated by
just staying even with their competition
Skeptical, traditional and of lower socio-economic status (very price sensitive) -
Require completely pre-assembled bulletproof solutions
Early Majority
Makes up
34%
of adopters
Motivated by
evolutionary changes
Uses
3 principles
in adopting new technology
"When it is time to move, let's move all together" -
defines why adoption increases so rapidly
"When we pick a vendor to lead us to the new paradigm, let us pick the same one" -
explains which firm will become the market leader
"Once the transition starts, the sooner we get it over with, the better" -
why transition stage occurs rapidly
Laggards
Makes up
16%
of adopters
Technology skeptics who
only want to maintain status quo
Early Adopters
Makes up
13.5%
of adopters
Motivated by
high-risk, high-reward projects
(Not price sensitive)
Typically demand
personalized solutions, quick-responses, highly qualified sales and support
Innovators
Makes up
2.5%
of adopters
Motivated by
being a change agent in their reference group
Is
willing to tolerate problems
that accompany new products/ services and make shift solutions
Product Characteristics that Influence Diffusion
Complexity
Degree to which
product is difficult to use/understand
- product should be low in complexity
Types of technological fear
Fear of technical complexity
Fear of rapid obsolescence
Fear of social rejection
Fear of physical harm
Trialability
Degree that product can be
tried on a limited basis
Usually
overcome
using samples and demo versions of a software
Compatibility
Degree that potential customers
feel is consistent with their present needs
Observability
Degree of
ease which product's benefits/ attributes can be observed
e.g. Tangible products are more easily promoted than a intangible product (service)
Relative Advantage
Degree that potential customers
perceive product as superior to existing substitutes
Stages in Adoption Process
3) Evaluation
Weighs the advantages and disadvantages
of using the innovation, and
decides whether to adopt or reject
the innovation.
4) Trial
Employs innovation to varying degree
depending on situation. They
determine the usefulness of the innovation
and
may search for further information
about it.
2) Interest
Individual is
interested in the innovation
and
actively seeks information and details
about it
5) Adoption/ Rejection
Finalizes his or her decision
to continue using the innovation and may end up using it to its fullest potential
1) Awareness
First exposed
to an innovation but
lacks complete information
- individual has
not been inspired to find more
information about the new idea
An individual might reject an innovation at any time during or after the adoption process
Defining Innovations
Product-Oriented Definitions
Types of Innovation
Dynamically Continuous Innovation
Two or more concepts are combined
, so there is a
‘learning curves’
but buyers can
easily understand the product idea
Discontinuous Innovation
Requires new experience, understanding and learning
to be able to be used properly.
Continuous Innovation
A
new model… the same idea
, with a minor facelift or design tweak where there is
no learning curve
for consumers.
Focuses on product features itself and on the effects they are likely to have on their usage patterns.
Market-Oriented Definitions
Judges the newness of a product using how much exposure consumers have to the new product
Two-market-oriented definitions
Considered new if it has been purchased by a relatively small (fixed) percentage of the potential market
Considered new if it has been on the market for a relatively short (specified) period of time
Firm-Oriented Definitions
Considered new if it has been on the market for a relatively short (specified) period of time
Consumer-Oriented Definitions
“New” product that a potential consumer judges to be new -
based on the consumer’s perception
of the product rather than on physical features or market realities