Chapter

16

Adoption of, Resistance

to, and Diffusion of
Innovations

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 Key Concepts

1. Classifications of innovations, benefits

offered and breadth.
2. Adoption of innovation, why resist
innovation, and timing of innovation.
3. Diffusion and its relationship to the
product life cycle.
4. Factors affecting adoption, resistance,
and diffusion.
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 Chapter Overview: Adoption of, Resistance to,
and Diffusion of Innovations
(Exhibit 16.1)

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 Innovation

an offering that is new to the

marketplace a product, service, or
ideaconsumers within a market
segment perceive as new and that has
an effect on existing consumption
patterns.

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 Characteristics of Innovations
Degree of Novelty
Continuous: an innovation that has a limited effect on
existing consumption patterns, no learning required.

Dynamically continuous: An innovation that has a

pronounced effect on consumption practices and often
involves new technology. (digital cameras, USB drive, etc)

Discontinuous: an offering that is so new that we have

never known anything like it before. (phones, microwave,
TV, Airplanes)
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 Characteristics of Innovations
Degree of Novelty
Continuous: an innovation that has a limited effect on
existing consumption patterns, no learning required.
Simply a new model, same idea.
No learning curve.

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 Characteristics of Innovations
Degree of Novelty
Dynamically continuous: An innovation that has a
pronounced effect on consumption practices and often
involves new technology.
Some learning curve.
Combining two concepts together.

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 Characteristics of Innovations
Degree of Novelty
Discontinuous
Telephone
Fax machine
microwave

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 Characteristics of Innovations
Benefits Offered
Functional: a new product/service that offer
functional performance benefits that are
better than existing alternatives.

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 Characteristics of Innovations
Benefits Offered

Aesthetic/hedonic: new product/service

that appeal to our sensory needs and
pleasure-seeking.

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 Characteristics of Innovations
Benefits Offered
Symbolic: new product/service that has new
social meaning.

Handbags, once
worn by women,
are now
fashionable for
men as well.

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 Characteristics of Innovations
3) Breadth

The range of new and

different uses for a
particular product.

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 Innovation Continuum (Exhibit 16.2)

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 Key Concepts

1. Classifications of innovations, benefits

offered and breadth.
2. Adoption of innovation, why resist
innovation, and timing of innovation.
3. Diffusion and its relationship to the
product life cycle.
4. Factors affecting adoption, resistance,
and diffusion.
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 Adoption:
process that focuses on the stages through
which an individual passes when deciding
to accept or reject a new product.

It is how consumers decides whether or

not to try and adopt innovative
product/service.

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 Adoption/Resistance to Innovations

Resistance: a desire not to buy the

innovation, even in the face of pressure.
Adoption: the purchase of an innovation (only
if you dont resist). hierarchy of effect
High-effort
Low-effort
Timing of adoption decisions
Characteristics of adopter groups
Application of adopter group categories
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 How consumers adopt an innovation
Adoption Decision Process (Exhibit 16.5)

Whether consumers adopt a product

depends on whether they are:
Prevention focused: priority safety and
protection.. Perceived risk and uncertainty.
Promotion focused: advancement and
growth.

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 How consumers adopt an innovation
Adoption Decision Process (Exhibit 16.5)

The way consumer adopt an innovation:

High effort: information search, judgment,
and choice.
Aware of innovation, thinks about it, further info,
form attitude -> trial -> adoption
Most likely in discontinuous process, why?
Low effort: less effort and research before
buying.

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 How consumers adopt an innovation
Adoption Decision Process (Exhibit 16.5)

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 Marketing Implications

If consumers adoption process is low-

effort, marketers must do all they can to
encourage consumer to try the product.

If high effort, reduce perceived risk.

E.g. Segway (training, safety, rule book)

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 When do consumer adopt
innovation?

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 Use-Diffusion Patterns for Home
Technology Innovations (Exhibit 16.7)

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 Marketing Implications

The first consumers to buy a product

are important:
They dont listen to others opinion and
more open minded to marketers messages
Influence others
Thus, innovators and target for
marketers.

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 Key Concepts

1. Classifications of innovations, benefits

offered and breadth.
2. Adoption of innovation, why resist
innovation, and timing of innovation.
3. Diffusion and its relationship to the
product life cycle.
4. Factors affecting adoption, resistance,
and diffusion.
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 Diffusion

reflects the behavior of the marketplace

of consumers as a groupthe percentage
of the population that has adopted an
innovation at a specific point in time.

The spread of a new product from its

source to the consuming public.

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 Diffusion Through a Market
How offerings diffuse through a market:
S-Shaped = associated with risk

Starts slow

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 Diffusion Through a Market
How offerings diffuse through a market:
Exponential = little risk, switching cost low

Starts fast

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 Diffusion Through a Market

Product life cycle stages

Introduction
Growth
Maturity
Decline

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 Product Life Cycle Curve (Exhibit 16.9c)

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 Product Life Cycle Pattern

Fad

Fashion

Classic

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 Product Diffusion vs. Product Life
Cycle

The product life cycle has four primary phases,

introduction, growth, maturity, and decline.

It differs from product diffusion in that diffusion

focuses on the percentage of the market that has
adopted the product.

The product life cycle deals with sales of the product

over time.

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 Key Concepts

1. Classifications of innovations, benefits

offered and breadth.
2. Adoption of innovation, why resist
innovation, and timing of innovation.
3. Diffusion and its relationship to the
product life cycle.
4. Factors affecting adoption, resistance,
and diffusion.
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 1) Characteristics of Innovation

Perceived Value
Is it worth it. (IPhone with larger screen)
Perceived Benefits
Relative Advantage: benefits compared to alternatives.
Use innovativeness: Finding use for a product that
differs from the products original intended usage

Perceived Costs
Switching costs
PlayStation to xbox
Apple to Android: apps, accessories, etc
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 Marketing implications:
Creating Advantage to Switch

Communicate/ demonstrate advantage

Price promotions to reduce perceived costs

warranties (e.g. Hyundai lifetime warranty)

Provide incentives to switch

Free samples

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 2) Risk/Uncertainty

doubt

relative advantage

length of the product life cycle

Fashion item. Spend KD 1000 on classic or
fad.

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 3) Consumer Learning Requirements
and Diffusion (p 431)

Compatibility: consistent with ones needs

and values.
Trialability: product is capable to being tried
Trial software, microwavable meals.

Complexity: difficulty to understand

e.g. disposable razor

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 4) Social Relevance

ObservabilityOthers Using Innovation.

the extent to which consumers can see
others using the innovation

Social Value
Socially desirable

Speeds diffusion

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 5) Legitimacy and Adaptability

Legitimate: extent to which the

innovation follows established
guidelines.
[McDonalds natural ingredients]

Adapt: innovations potential to fit with

existing products or styles.
Cellphones: calls, video, email, TV, chat
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 6) Characteristics of Social System

Modernity: The extent to which consumers in the social

system have positive attitudes toward change.

Homophily

Physical Distance

Opinion Leadership

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 Consequences of Innovation

May offer new relative advantages

Negative consequences may arise

Social
Economic

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