1、Diffusion of Innovations This topic investigates key issues concerning with how various innovations get diffused in the market-place after their initial launch. Objectives: 1. To study theories about diffusion 2. To look at consumer segments which facilitate diffusion processes. K
2、ey Ideas: Diffusion is a process by which an innovation is communicated through certain channels over time amongst members of a given social system. There are four key elements: The Innovation:- a product or an idea Communication:- through different channels. Time: time taken by an indiv
3、idual to ado pt an innovation. Social system:- this sets the boundary within which diffusion takes place i.e. a group of people, a society etc. What is an innovation? A totally new concept Copied products Modifications Robertson (1967) provides three categories of Innovatio
4、n: Continuous Innovation:- These innovations are a modification of present products and are the least disruptive in their impact on consumption behavior. Dynamically Continuous:- Either a creation of a new product or an alteration of an existing one. These innovations have some disruptive inf
5、luence on consumption behavior, but do not change the established behavior. Discontinuous Innovation:- These innovations are radically new. They have a considerable disruptive impact on consumption behavior. What makes an innovation successful? Rogers suggests the followi
6、ng characteristics: Relative advantage:- Is an innovation offering more benefits than the existing one? If it is then it will be more likely to diffuse successfully. Compatibility:- How compatible (consistent) an innovation is with existing experience of potential adopters? Complexity:- Deg
7、ree to which an innovation is perceived to be easy or complex to use and understand. The more complex the innovation the less likely it is to succeed. Triability:- An innovation is more likely to succeed if potential adopters can try it out first. For instance, a new shampoo could be packed in m
8、iniature bottles and given out as shampoo which would allow consumers to form an opinion about it before a purchase made. Observability:- Is concerned with the degree to which an innovation can be seen by friends and neighbours. The higher the visibility the more likely it will be for an innovati
9、on to diffuse. What is Innovativeness? It is “any idea or product perceived by potential adopters to be new”, regardless of the time it has been in the marketplace. Who buys new products? Rogers suggests the following: The photocopy displayed provides some generalisation about characteris
10、tics of adopter categories. For instance the evidence indicates that Innovativeness is strongly related to Education, Ability to cope with uncertainties and change. Communication process: Information regarding a new product is communicated within a given social system as follows: The two-step
11、 flow model: This theory postulates that effects of mass-media are not directly received by majority of people instead are picked by a small number of people who in turn disseminate information to others in a society (labeled as opinion leaders). Multi-phasic model: Several researchers have
12、 challenged the two step flow of information and put forward an alternative theory. This theory emphasises that the audience are not passive but actively seek information regarding products. Sources that they may consult are: Mass-media i.e. television, magazines Word -of- mouth i.e. friends,
13、 neighbors Neutral sources i.e. consumer reports. SELF- TEST QUESTIONS? What is Innovation? What are the main elements of Innovation? What characteristics are required to assist diffusion? What are the theories that explain the communication process?






