Factors Affecting the Rate Of Diffusion

And Consumer Adoption

Of Newly Launched Products And Services

By Mausumi Mohanta

Consumer Adoption Process :

Process by which consumers learn about

New Products, Try them

Adopt Or Reject them.

• Characteristics of New-Product

• Consumers’ and Organizers’

Willingness to try new products

• Personal Influences

Factors Influencing Adoption Process :

Characteristics of The Innovation

Some products catch

on immediately,

Whereas Some Take

a long Time Gaining

Acceptance

Rate of Adoption of Innovation

• Compatibility

• Relative Advantage

• Complexity

• Divisibility

• Communicability

Characteristics of Innovation

Compatibility is the degree to

which the innovation

Matches the Values and

Experiences of Individuals.

Characteristics of Innovation

Relative Advantage is the degree to

which the innovation Appears

superior To Existing Products.

Characteristics of Innovation

Complexity is the degree to

which the innovation is relatively

Difficult to understand or to use.

Characteristics of Innovation

Divisibility is the degree to which the

innovation can be tried On a limited

basis.

Characteristics of Innovation

Communicability is the degree to

which the beneficial results of use are

Observable or describable to others.

Readiness to use new products

Varies from

Person to person

5 Adopter Groups :

• Innovators

• Early Adopters

• Early Majority

• Late Majority

• Laggards

Innovators :

Technology enthusiasts,

Help in Alpha and beta testing stages

Early Adopters :

Opinion leaders ,

Less price sensitive, willing to adopt

product

Early Majority :

Deliberate Pragmatists,

Adopt new products with proven

benifits

Late Majority :

Sceptical conservatives,

Are risk averse, Technology shy, and

Price sensitive

Laggards :

Traditionalists,

Resistive to innovation

Personal Influence

Effect that one person has on another’s

attitude or purchase probability.