Adoption of Payment Systems in Ten Countries

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Submitted by: Donny Thomas Diju Daniel Manisha Das Itika Maharaja Udita Sood Raunak Dutta Soumava Ghosh Indrajit Mitra ADOPTION OF PAYMENT SYSTEMS IN TEN COUNTRIES- A CUSE STUDY OF DIFFUSION OF INNOVATIONS

Table of Contents
Introduction3
Literature review:4
Marketing Research:7
Case Analysis:9
Conclusion:12
Learning Outcomes13

Introduction
The case talks about the the product innovation adopted by the market. The speed of adaptation of an innovationation is dependent on the adaptation of previous products and systems. Social learning plays a major role in diffusion of these products. These social learning are stimulated by communication. In case of software industry where new operating systems, software packages and software updates follow each other rapidly, opportunities for social learning may be less than in case of communication, manuscripts and other results, produced by software packages, will be visible and exchanged between people, thus stimulating social learning. His case focuses on adoption of payment method. Bank has evolved many new types of payment systems like cheques, credit card, ATMs and banker’s card. Use of cheque is declining and is been replaced by non-cash transactions. Desk-money transactions have been replaced by automatic teller machines (ATMs) and cash-money transactions were first replaced by money cheques and later by credit cards and banker's cards.In most western countries, the volume of money transactions by means of plastic cards is increasing. These innovations are followed by smart cards. The success of the smart card will depend on market circumstances and cooperation among the banks.Since in different countries the volume of banker's card transactions has developed in different ways, the introduction and adoption of the next innovation, the smart card, will vary across countries. Innovativeness can be viewed in different ways. Innovativeness has been defined as a personality trait reflecting the willingness to form new ideas and to take innovative decisions independent of what other people say and do. Simple innovations are relatively easy to adopt and the diffusion process is likely to be exponential. However, complex innovations require learning, slowing down the adoption process, resulting in an S-shaped diffusion curve. Simple innovations are relatively easy to adopt and the diffusion process is likely to be exponential. However, complex innovations require learning, slowing down the adoption process, resulting in an S-shaped diffusion curve.

Literature review:
The literature review will mainly deal with the concepts that can be related to the case. In this case the two concepts that can be related are diffusion of innovation and S-curve. In next section we deal with both the concepts in detail. 2.1 Diffusion of Innovation:

Diffusion of Innovation explain how, why and rate at which the new technology or innovation spreads across different cultures. The diffusion process explains marketers to set strategies for new technology. It also understands the rate of adoption at which the innovation gets accepted among its consumers. The diffusion of innovation has two closely related processes the diffusion process and the adoption process.

2.1.1 Diffusion Process:
This process explains how the innovation spreads in market and gets assimilated among the consumers. It is a process by which the acceptance of an innovation in spread by communication to members of social systems over a period of time. The four basic element of diffusion process is 1. The innovation

2. The channels of communication
3. The social system
4. Time
The innovation: This basically defines the innovation based on the product or services. Generally there is no such definition of innovation but then generally we have a process to relate it...
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