New Product Adoption and Diffusion
The marketer has to understand this consumer adoption process to build an effective marketing strategy. The adoption process is the set of successive decision an individual makes before accepting an innovation.
Diffusion of a new product is the process is the process by which an innovation is communicated in a social system over a period of time.
Adopters of new product usually move through the following.
Buyers become aware of the product
Buyers seek information and are receptive to learning about product
Buyers consider product benefits and determine whether to try it
Buyers examine, test or try the product to determine usefulness relative to needs
Buyers purchase the product and can be expected to use it when the need for the general type of product arises.
The manner in which different members of the target market often accept and purchase a product (go through the adoption process)
Techno-savvies first customers to buy a product, 2.5 % of consumers
2. Early Adopters
Tend to be opinion leaders. Adopt new products but use discretion, 13.5%
3. Early Majority
34% of consumers, first part of the mass market to buy the product
4. Late Majority
Less cosmopolitan and responsive to change, 34%
Price conscious, suspicious of change, 16%, do not adopt until the product has reached maturity.
Characteristics of a product innovation that influence its adoption rate include:
Relative advantage: it refers to the benefit provided by the marketer for product i.e. price, safety.
Compatibility: Concerned with the cultural value and experience of the adopters
Complexity: he innovated product should not lead to complexity in understanding the concept.
Possibility of trial use: greater the possibility of trail faster will be the adoption rate.
Observability: Greater the obervability,