adoption curve

fad
less then 6 months
classic
100 plus years
the adoption curve is also called
diffusion of innovation curve
on an adoption curve what changes
ONLY THE TIME ELEMENT

every product and situation remains the same for all items

diffusion of innovation
the process by which the use of an innovation spreads throughout the market group, over time and across various categories of adopters.
innovators are important in finding out because they
are crucial in helping the product gain market acceptance

product is extreme

innovators are change agents
people who can enable the adoption, magazine editors, doctors writing prescriptions
early adopters
don’t like to take as much risk as innovators but are a critical group
the OC was disproportionate of
early adopters.. created for product placement
when you reach the casm
marketing is a lot easier and you start to need less marketing resources
early majority are
crucial because few new products and services can be profitable until this large group buys them. if the group never becomes large enough, the product or service typically fails
late majority
the last group of buyers to enter a new product makret. when they do the product has achieved its FULL MARKET POTENTIAL

-follow naturally
-don;t want to be left out
– product design has been simplified and adapted

laggards
these consumers avoid change and rely on traditional products until they are no longer available
– do eventually adapt the innovation but takes awhile to do it
-by this time innovators are on to the next invention
with the adoption curve firms can predict
which type of customers will buy their new product or services immediately after its introduction as well as later as the product gets more and more accepted by the market

can also develop effective price, promotion and other marketing strategies to push acceptance among each customer

relative advantage
if a product or service is perceived to be better than substitutes then the diffusion will be relatively quick.

-most important
-convince american that your product is better than competitors
-value, convenience, better performance

ex wiki vs encyclopedia

compatitbility
a diffusion process may be faster or slower, depending on various consumer features, including international cultural differences

– do consumers need to change their current behavior or attain additional features

Ex. Americans eating in the car

observability
when products are easily observed their benefits or uses are easily communicated to others which enhances the diffusion process
-public or private?
-necessity or luxary?
– private necessities are hard to diffuse because no one shows them to someone else

ex. toilets

complexity
products that are relatively less complex will generally diffuse more quickly than those that are difficult
-extent of learning required

ex. lego and ikea

trialability
products that are easy to try diffuse quicker than those that are not so easy to try

– can be sampled, tested, and or demonstrated

Ex. Costco samples, try it before you buy it

continuous innovation
1. new flavor of ice cream
2. smaller cell phone
3. car with a sunroof

no behavior change required

no learning required

present the relative advantage(PRA)

MAJORITY OF NEW PRODUCTS ARE HERE

dynamic continuous
4. electric tooth brush
5. online news paper
6. ipod
7. T.V. after radio

must modify behavior

no learning required

PRA minimize complexity make visible and public

discontinuous innovation
8. internet
9. P.C. and microwaves
10. Cars

substantial learning required

great change in behavior

very distinctive

additional goods and services needed

sometimes those that dont accept the product are disrupted by it

PRA: minimize complexity, make visible, trailability, make it fit into consumers lives

RARE

what does a level 4 and below of innovation look for
new flavor
smaller size
slight feature change