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Understanding Innovation Diffusion

The document discusses the diffusion of innovation theory developed by Rogers in 1962, outlining the key aspects of the theory including the innovation-decision process, adopter categories, and characteristics of innovations that influence their rate of adoption. It also provides examples of diffusion research related to consumer behavior and the adoption of new products. The theory seeks to explain how new ideas and practices spread and are adopted over time within social systems through communication channels.

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Gayathry Suresh
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0% found this document useful (0 votes)
230 views20 pages

Understanding Innovation Diffusion

The document discusses the diffusion of innovation theory developed by Rogers in 1962, outlining the key aspects of the theory including the innovation-decision process, adopter categories, and characteristics of innovations that influence their rate of adoption. It also provides examples of diffusion research related to consumer behavior and the adoption of new products. The theory seeks to explain how new ideas and practices spread and are adopted over time within social systems through communication channels.

Uploaded by

Gayathry Suresh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Consumer Behavior Presentation

on

DIFFUSION OF INNOVATION
Done by-
Gayathry Suresh
 Transformation of an idea into something useful.
 There are two different kinds of innovation:
1. New things
2. New development of things

What is
Innovation?
 First developed by E. M. Rogers in 1962
 The diffusion of innovation theory seeks to explain how and why
new ideas are practices are adopted, with timelines potentially
spread out over long periods.
 It is designed in two processes:
1. Diffusion and
Diffusion of 2. Adoption
Innovation
 Innovators
 Early Adopters
 Early Majority
 Late Majority
 Laggards

Stages in
Innovation
The Innovation Various approaches
have been taken to
define a new
The channels of communication product:
1. Firm Oriented
The Diffusion 2. Product Oriented
Process The social system 3. Market Oriented
4. Consumer Oriented

Time
The Innovation How quickly
innovation spreads
depends on channel
The channels of of communication.
The Diffusion communication There are 2 sources
Process for communication:
1. Impersonal
…contd. The social system
2. Interpersonal

Time
The Innovation It is a physical, social
or cultural
environment in
The channels of communication which people belong
The Diffusion and within which the
function.
Process It can be of 2 types:
The social system 1. Traditional social
…contd.
system
2. Modern social
Time
system
The Innovation Backbone of
diffusion process.
It pervades the
The channels of communication study of diffusion in
The Diffusion 3 distinct ways:
Process 1. Amount of purchase
time
…contd. The social system
2. Identification of
adopter categories
3. Rate of adoption
Time
Compatibility

Relative
Complexity
Product Advantage

characteristics
that influence
diffusion Resistance to Trial-
Innovation Ability

Observability
5 Stages in the decision innovation
process

Knowledge Persuasion Decision Implementation Confirmation


Stages in
Adoption Reject

Accept
Awareness Consumer in first
expose to the
product of
Interest
innovation.
Lacks information
The Adoption Evaluation
about the
product.
Process May only know
Trial
the name of the
product and its
basic features.
Adoption or Rejection
Awareness Consumer is
interested in the
product and searches
Interest for additional
information.
The Adoption Evaluation
He wants to know
what it is, how it
Process works and what its
potentials are.
Trial

Adoption or Rejection
Awareness Consumer’s
discretion to believe
in the product/
Interest
service or not.
Will it satisfy the
The Adoption consumer’s needs
Evaluation and requirements.
Process Individual makes a
Trial
mental trial of the
idea.

Adoption or Rejection
Awareness Limited usage.
Consumer
determines the
Interest
usefulness of the
innovation and may
The Adoption search for further
Evaluation
information about it.
Process This stage is
characterized by
Trial small- scale
experimental use.
Adoption or Rejection
Awareness If trial was favorable
consumer decides to
accept the
Interest
innovation.
If unfavorable the
The Adoption Evaluation
consumer decides to
reject it.
Process
Trial

Adoption or Rejection
Opinion
Leader

Market
Innovators
Mavens

Important
Terminologies
Personality
Technophiles
Traits

Change
Leaders
“THE USE OF DIFFUSION THEORY IN MARKETING: A QUALITATIVE
APPROACH TO INNOVATIVE CONSUMER BEHAVIOR”

This paper offers preliminary findings from a qualitative study of owners of


compact disc players. The focus of the research was to explore consumers' reasons
The Association for purchasing particular products, their reasons for postponing purchase
decisions, and their reasons for resisting other product purchases. The underlying
for framework for this research is that of diffusion of innovation, particularly as it is
used by consumer behavior researchers. This paper argues for a new approach to
Communication the study of consumer innovativeness.
Research
Citation:
Tina M. Lowrey (1991) ,"The Use of Diffusion Theory in Marketing: a Qualitative
Approach to Innovative Consumer Behaviour", in NA - Advances in Consumer
Research Volume 18, eds. Rebecca H. Holman and Michael R. Solomon, Provo, UT :
Association for Consumer Research, Pages: 644-650.
“Diffusion of Innovation and Consumer Behavior with special
reference to the Consumer Goods”

The aim of the paper is to study the impact of innovation in the products
International used by the consumer daily in their life and how it impacts the behavior of
consumer. The result of the study is based on the data collected through
Journal of Creative questionnaire around 100 consumers of Madhya Pradesh and the review of
literature of already published in the area of consumer and diffusion of
Research innovation.

Thoughts
Citation:
Ms. Shreya Bhagwat (2022) ,"Diffusion of Innovation and Consumer Behavior
with special reference to the Consumer Goods", in International Journal of
Creative Research Thoughts- ISSN: 2320- 2882, Volume 10, Issue 10, UT :
www.ijcrt.org.
“Rethinking the process of diffusion in innovation: A service-
ecosystems and institutional perspective”

The traditional view of diffusion to innovation separates technological and


market aspects of innovation by relying on an underlying assumption of a
unidirectional flow of innovation–that is, from the technological side to the
market side. This paper develops a theoretical framework for rethinking the
Journal of Business process of diffusion in innovation, using a service-centered, ecosystems, and
institutional lens. This framework helps to overcome narrow conceptions
Research that separate technological aspects of innovation from processes of diffusion
or adoption, and highlights the importance of institutional change.

Citation:
Stephen L. Vargo, Mellisa Arhcpru Akak, Heiko Wieland (2020) ,"Rethinking
the process of diffusion in innovation: A service-ecosystems and institutional
perspective", in ELSEVIER – Journal of Business Research Volume 116, UT :
Science Direct, Pages: 526-534.

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