CONSUMER BEHAVIOR

Diffusion of Innovation Processes

Diffusion of Innovation Processes

Adoption and diffusion of innovations processes

Diffusion of innovation explains why, how and at what speed the innovative ideas and change in technology should occur and how it should spread into different cultures. According to Everett Rogers, the process through which innovation and ideas are communicated with the help of different channels to different people of a social system. The elements which are involved in this process include social system, communication channels, innovation and time. This whole process is very lengthy and involves different periods of time. It requires involvement of lots of manpower as it is related to the cognitive thinking of human being. The process of innovation should have a self-sustaining capability. There are different stages of product diffusion and involves various categories of adopters (Larsen & McGuire 1998, P. 347). It has been observed that diffusion of innovations varies from culture to culture and depending upon the type of adopters. It also depend on which phase if product on its life cycle.

Type of adopters

There are different types of adopters which are effecting the diffusion of innovation process these adapters are re as follows:

Innovators

This is the most reactive type of adopters. These people are the initial buyer of the product and they are also not afraid of experimenting new things. This category of adopters buy the product which suits their lifestyle at very initial level and are also ready to pay premium price for that particular product. Companies cannot rely on the sales to the innovators as they are the risk takers and it is not necessary that the sales will augment at the same rate at which innovators are adopting the product (Valente 1999, P. 40).

Early adopters

Early adopter is the group of those people who are considered to be the opinion leader in their community. They usually do not purchase product even if they know that purchasing this product is risk (as the innovators do). These people make the purchases after a careful thought process. Company can rely on sales to the early adopters as people like to follow them and if the product is acceptable by this group it starts a journey towards being 'socially acceptable'(Valente 1999, P. 40).

Early majority

This refers to the group that purchases a product after it has become socially acceptable. These people are cautious about the product and its effects due to which they buy the product when they see few people other than opinion leaders using that product (Tidd 2010, P. 47).

Late majority

This group buys the products after many people around them start using it. Once these people start using the product, it becomes common. They are very cautious about the product quality and cannot compromise on it. Therefore they need too many opinions to affect their decision. Mostly they buy product during its last stage of product life cycle.

Laggards

The last category of adopters of a product is known as laggards. This group consist of those people who adapts new product not due to their ...