Presentation Aisha Maheen

8/8/2019 Presentation Aisha Maheen

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Personal influence

and diffusion ofinnovations

Presented by:Presented by:

AishaAisha AnamiAnami 41434143

Maheen Amjad 4116Maheen Amjad 4116


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Personal Influence

Power of individual to sway or controlPower of individual to sway or controlthe purchasing decision of othersthe purchasing decision of others

Multidimensional Nature CommunicationMultidimensional Nature CommunicationPhenomenonPhenomenon::

Source initiated or recipient initiatedSource initiated or recipient initiated

One way or two wayOne way or two way

Verbal or visualVerbal or visual


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Word of mouth advertisement

WOM advertisement is communicated from oneWOM advertisement is communicated from onesatisfied customer of a product or service to familysatisfied customer of a product or service to familymember friend or who may be a prospective customermember friend or who may be a prospective customerfor the same product or service .for the same product or service .


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A multistep model ofcommunication

MarketerMarketer

Opinion LeaderOpinion Leader (general)(general)

Consumer 1, Consumer 2Consumer 1, Consumer 2 etc (situational)etc (situational)

Consumer 3Consumer 3 Consumer4 and so on..


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OPINION LEADER

OPINION LEADERS are those whoseOPINION LEADERS are those whoseideas & behavior serve as a model toideas & behavior serve as a model to

othersothers Opinion leaders communicateOpinion leaders communicate

message to a primary groupmessage to a primary groupinfluencing the attitudes andinfluencing the attitudes andbehavioral change of their followersbehavioral change of their followers


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Characteristics of

Opinion Leader Opinion leaders have approx the same social classOpinion leaders have approx the same social class

and have higher social status with in the class .and have higher social status with in the class .

Opinion leaders have greater exposure to massOpinion leaders have greater exposure to massmedia that are relevant to their area of interest .media that are relevant to their area of interest .

Opinion leader have greater interest and knowledgeOpinion leader have greater interest and knowledgeof the area of influence.of the area of influence.

They are more innovativeThey are more innovative


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Why opinion leaders attempt to

influence others Product involvement : People like to tell about their goodProduct involvement : People like to tell about their good

experience with a new product.experience with a new product.

Self involvement : Product talk can result in achieving goalsSelf involvement : Product talk can result in achieving goalssuch as gathering attention, having inside information, feelingsuch as gathering attention, having inside information, feelinglike a pioneer, having inside information , suggesting status,like a pioneer, having inside information , suggesting status,spreading gospel ,seeking confirmation, asserting superiority.spreading gospel ,seeking confirmation, asserting superiority.

Other involvement: Product talk fills the need to give somethingOther involvement: Product talk fills the need to give somethingto the listener share happiness or express love, care orto the listener share happiness or express love, care orfriendshifriendshipp


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Message involvement : Talking mayMessage involvement : Talking mayalso be stimulated by great interestalso be stimulated by great interest

in the messages used to present thein the messages used to present theproduct. E.g. an advertisement thatproduct. E.g. an advertisement thatis entertaining .is entertaining .

The involvement level of consumers,The involvement level of consumers,therefore is a critically importanttherefore is a critically importantdimension of their behavior asdimension of their behavior asopinion leaders and innovators.opinion leaders and innovators.


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Why followers accept personalinfluence Product characteristics are important in judging theProduct characteristics are important in judging the

significance of personal influence.significance of personal influence.

Product complexity gives rise to the occurrence ofProduct complexity gives rise to the occurrence ofpersonal influence .personal influence .

Individuals facing new life experiences may be quiteIndividuals facing new life experiences may be quitesusceptible to personal influence .susceptible to personal influence .

Individual consumer characteristics andIndividual consumer characteristics andgroup influences are also important ingroup influences are also important indetermining the extent to which opiniondetermining the extent to which opinionleadership will be operative.leadership will be operative.


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THE MARKET MAVEN

Individuals having informationIndividuals having informationabout many kinds of products,about many kinds of products,

places to shop, who initiatesplaces to shop, who initiatesdiscussions with consumers anddiscussions with consumers andrespond to their requests for marketrespond to their requests for marketinformation.information.


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Adoptation and diffusion of

InnovationsInnovation:Innovation:It is any idea or practice or material artifactIt is any idea or practice or material artifact

perceived to be new by the relevant adoptingperceived to be new by the relevant adoptingunit. It is the range of newness based on theunit. It is the range of newness based on the

products effect on established consumptionproducts effect on established consumption

patterns.patterns.


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Innovations have three categories:Innovations have three categories:

1.Continuous innovations:1.Continuous innovations:

The modification of an existing product rather thanThe modification of an existing product rather than

the establishment of a totally new productthe establishment of a totally new product

Modification may be in the taste, appearance,Modification may be in the taste, appearance,

performance, or reliability of the existing productperformance, or reliability of the existing product


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May involve either theMay involve either thecreation of a new product or acreation of a new product or asignificant alteration of ansignificant alteration of anexisting oneexisting one

Does not generally alterDoes not generally alter

established purchase or usageestablished purchase or usagepatterns.patterns.

2.Dynamic innovations


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Involves the introduction ofInvolves the introduction ofan entirely new product thatan entirely new product that

significantly alters consumerssignificantly alters consumersbehavior patterns andbehavior patterns andlifestyleslifestyles

Examples includeExamples include

automobiles, televisions,automobiles, televisions,videocassette recorders, andvideocassette recorders, andcomputerscomputers

3.Discontinuous

innovations


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The Adoption Process

It is an individual phenomenon relating to the sequence ofIt is an individual phenomenon relating to the sequence ofstages through which an individual passes from first hearingstages through which an individual passes from first hearingabout a product to finally adopting it.about a product to finally adopting it.

This model consists of the following stages:This model consists of the following stages:


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Stages: Adoption: at this stage the potential adopterAdoption: at this stage the potential adopter

finds out about the existence of a product butfinds out about the existence of a product buthas very little information about and no wellhas very little information about and no wellformed attitudes about it.formed attitudes about it.

Comprehension: this stage represents theComprehension: this stage represents thecustomers having knowledge andcustomers having knowledge andunderstanding of what the product is and canunderstanding of what the product is and cando.do.

Attitude: the customer develops favorable orAttitude: the customer develops favorable or

unfavorable behavioral predispositionsunfavorable behavioral predispositionstowards the product.towards the product.


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Contd.: LegitimationLegitimation: the costumer becomes convinced: the costumer becomes convinced

about the product should be adopted.about the product should be adopted.

Trial: the customer tests or tries the product toTrial: the customer tests or tries the product todetermine its utility.determine its utility.

Adoption:Adoption: the customer determines whether orthe customer determines whether ornot to use the product in full scale way.not to use the product in full scale way.


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The Diffusion Process

Diffusion: The process by which an innovationDiffusion: The process by which an innovation(new idea) is communicated through certain(new idea) is communicated through certainchannels over time among the members of achannels over time among the members of asocial systemsocial system

It refers to a group phenomenon indicating howIt refers to a group phenomenon indicating howan innovation spreads among consumers. Itan innovation spreads among consumers. Itinvolves the adoption process of many individualsinvolves the adoption process of many individualsover time.over time.


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Categories of adopters:Classified into five categories:Classified into five categories:

Innovators: venturesome people andInnovators: venturesome people and riskrisk takers who are thetakers who are thevery firstvery first users; comprising about 2.5users; comprising about 2.5 percentpercent of theof the targettargetmarket,market,

Early adopters: prestige orientedEarly adopters: prestige oriented opinion leaders, aboutopinion leaders, about

13.5 percent of the13.5 percent of the targettarget market,market,

Early majority: theEarly majority: the leadingleading segmentsegment of theof the mass market,mass market,about 34 percent of the target market,about 34 percent of the target market,

Late majority: followers of the early majority, also about 36Late majority: followers of the early majority, also about 36percent of the target market,percent of the target market,

Laggards:Laggards: conservative,conservative, price consciousprice conscious segment,segment, about 14about 14percent of the target market.percent of the target market.


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Factor influencing the

rate of diffusion: Relative AdvantageRelative Advantage

CompatibilityCompatibility

ComplexityComplexity

TrialabilityTrialability

ObservabilityObservability

CostCost


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Relative Advantage

The degree to which consumers mayThe degree to which consumers mayperceive the innovation to offerperceive the innovation to offersubstantially greater benefits than thesubstantially greater benefits than the

product they currently useproduct they currently use To what degree will the new product be aTo what degree will the new product be a

substitute for existing ones or complementsubstitute for existing ones or complementthose already in consumers inventories?those already in consumers inventories?

New products most likely to succeedNew products most likely to succeedappeal strongly to felt consumer needsappeal strongly to felt consumer needs


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Compatibility:

The degree to which a new product isThe degree to which a new product isconsistent with an individuals existingconsistent with an individuals existingpractices, values, needs, and pastpractices, values, needs, and pastexperiences of the potential adoptersexperiences of the potential adopters

How does the innovation blend withHow does the innovation blend withproducts consumers might own?products consumers might own?

Will it replace other products or will itWill it replace other products or will itbecome a part of an existing system?become a part of an existing system?

How does the innovation fit currentHow does the innovation fit currentpurchase or consumption behaviors?purchase or consumption behaviors?


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Complexity

The degree to which an innovationThe degree to which an innovationis perceived as difficult to understand andis perceived as difficult to understand anduseuse

The more complex, the more difficult it willThe more complex, the more difficult it willbe to gain acceptancebe to gain acceptance

Complexity is a deterrent of trying newComplexity is a deterrent of trying newtechnologytechnology


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Contd.

How difficult is the innovation toHow difficult is the innovation tounderstand?understand?

How easy is it to explain to consumers inHow easy is it to explain to consumers inwritten form and oral communication?written form and oral communication?

How frustrating will it be to consumersHow frustrating will it be to consumerswhen evaluating products or learningwhen evaluating products or learninghow to use new innovation?how to use new innovation?

How much time will consumers have toHow much time will consumers have todevote to learning how to use and caredevote to learning how to use and carefor the product?for the product?


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Trialability

New products are more apt to succeed whenNew products are more apt to succeed whenconsumers can experiment with or try theconsumers can experiment with or try theidea on a limited basis, with limitedidea on a limited basis, with limitedfinancial riskfinancial risk

How can a company encourage consumers to try aHow can a company encourage consumers to try anew product?new product?

Where will consumers be able to try the innovationWhere will consumers be able to try the innovationand how will they receive answers to theirand how will they receive answers to their

questions?questions?


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Observability

The degree to which results fromThe degree to which results fromusing a new product are visible tousing a new product are visible to

friends and neighborsfriends and neighbors If consumers can see othersIf consumers can see others

benefiting from the use of a newbenefiting from the use of a newproduct, that innovation is moreproduct, that innovation is more

likely to be successful and diffuselikely to be successful and diffusefasterfaster


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Cost

It refers to the magnitude of theIt refers to the magnitude of thefinancial resources required to obtainfinancial resources required to obtain

and operate this innovation.and operate this innovation. Innovations high in cost would beInnovations high in cost would be

expected to diffuse more slowly.expected to diffuse more slowly.


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The sender of information is oftenThe sender of information is oftenconsidered an opinion leaderconsidered an opinion leaderaaperson who influences theperson who influences the

decisions of othersdecisions of others Opinion leaders might be expertsOpinion leaders might be experts

in one area but not in othersin one area but not in others

The greater the perceivedThe greater the perceived

knowledge of a category, the moreknowledge of a category, the morelikely that persons opinions are tolikely that persons opinions are toinfluence others decisionsinfluence others decisions

OPINION

LEADERSHIP


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Personal influence in the form ofPersonal influence in the form ofopinion leadership is likely to occuropinion leadership is likely to occurwhen:when:

An individual has limited knowledgeAn individual has limited knowledgeofof

a product or branda product or brand The person lacks the ability toThe person lacks the ability to

evaluate the product or serviceevaluate the product or service

The consumer does not trustThe consumer does not trustadvertising and other sources ofadvertising and other sources ofinformationinformation

Other information sources have lowOther information sources have lowcredibility with the consumercredibility with the consumer

Contd.


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The individual has a high need forThe individual has a high need forsocial approvalsocial approval

Strong social ties exist betweenStrong social ties exist betweensender and receiversender and receiver

The product is complexThe product is complex

The product is difficult to testThe product is difficult to test

against objective criterionagainst objective criterion The product is highly visible toThe product is highly visible to

othersothers

Contd.


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1. Identifying and using1. Identifying and usingopinion leadersopinion leaders

2.2. Creating opinion leadersCreating opinion leaders

3.3. Simulating opinionSimulating opinionleadershipleadership

4. Shifting opinion leadership4. Shifting opinion leadership

Strategies for adopting

opinion leaders:


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1.Identifying and using opinion

leaders

The techniques involve measuring the degreeThe techniques involve measuring the degree

of opinion leadership among consumers orof opinion leadership among consumers or

through survey research. Identify the companythrough survey research. Identify the company

product records to examine purchase records.product records to examine purchase records.


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2. Creating opinion leaders

A number of companies have attempted to createA number of companies have attempted to create

opinion leadership by getting the product into theopinion leadership by getting the product into the

hands of people who have a great deal of publichands of people who have a great deal of publiccontacts or exposure.contacts or exposure.


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3. Simulating opinionleadership

Simulating opinion leadership is done by wordSimulating opinion leadership is done by word--

ofof--mouth communication. It may be done bymouth communication. It may be done byadvertising, promotions, commercials, andadvertising, promotions, commercials, and

virtual communication. Now days thisvirtual communication. Now days this

leadership is encouraged by using teaserleadership is encouraged by using teaser

promotional campaigns.promotional campaigns.


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4. Shifting opinion leadership

There may be a time when marketers desire toThere may be a time when marketers desire to

shift personal influence rather than encourageshift personal influence rather than encourage

it. Negative personal influence may be theit. Negative personal influence may be the

result of rumor, poor product or advertising,result of rumor, poor product or advertising,

misunderstanding among consumers.misunderstanding among consumers.

Presentation Aisha Maheen

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