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    Communication & Consumer Behavior

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    Aaditya Bhardwaj
    Dishwashers took 50 years to become mainstream after being launched in 1924, while the iPod became popular globally within 5 years. This difference can be explained by the diffusion of innovation process. The process has 4 main elements - the innovation itself, communication channels, the social system, and time. An innovation's characteristics like relative advantage, compatibility, complexity, trialability, and observability affect its rate of adoption. Communication channels between companies and consumers and between consumers influence social acceptance. Social systems that are open to change tend to adopt innovations faster. The adoption follows an S-shaped curve as innovators, early adopters, early majority, late majority, and laggards sequentially adopt. Individual adoption involves stages from awareness to

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    Communication & Consumer Behavior

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    Aaditya Bhardwaj
    21 views25 pages
    Dishwashers took 50 years to become mainstream after being launched in 1924, while the iPod became popular globally within 5 years. This difference can be explained by the diffusion of innovation process. The process has 4 main elements - the innovation itself, communication channels, the social system, and time. An innovation's characteristics like relative advantage, compatibility, complexity, trialability, and observability affect its rate of adoption. Communication channels between companies and consumers and between consumers influence social acceptance. Social systems that are open to change tend to adopt innovations faster. The adoption follows an S-shaped curve as innovators, early adopters, early majority, late majority, and laggards sequentially adopt. Individual adoption involves stages from awareness to

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    Dishwashers took 50 years to become mainstream after being launched in 1924, while the iPod became popular globally within 5 years. This difference can be explained by the diffusion of innovation process. The process has 4 main elements - the innovation itself, communication channels, the social system, and time. An innovation's characteristics like relative advantage, compatibility, complexity, trialability, and observability affect its rate of adoption. Communication channels between companies and consumers and between consumers influence social acceptance. Social systems that are open to change tend to adopt innovations faster. The adoption follows an S-shaped curve as innovators, early adopters, early majority, late majority, and laggards sequentially adopt. Individual adoption involves stages from awareness to

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    21 views25 pages

    Communication & Consumer Behavior

    Uploaded by

    Aaditya Bhardwaj
    Dishwashers took 50 years to become mainstream after being launched in 1924, while the iPod became popular globally within 5 years. This difference can be explained by the diffusion of innovation process. The process has 4 main elements - the innovation itself, communication channels, the social system, and time. An innovation's characteristics like relative advantage, compatibility, complexity, trialability, and observability affect its rate of adoption. Communication channels between companies and consumers and between consumers influence social acceptance. Social systems that are open to change tend to adopt innovations faster. The adoption follows an S-shaped curve as innovators, early adopters, early majority, late majority, and laggards sequentially adopt. Individual adoption involves stages from awareness to

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 25

    Communication & Consumer

    behavior
    Dishwashers were launched in 1924 but took 50
    years to become a mainstream product even
    in developed markets like US.

    Ipod took less than 5 years to become a popular


    product globally.

    Why?
    Diffusions of Innovation

    • How are new products and services


    accepted?

    3
    The process by which
    the acceptance of an
    innovation is spread by
    Diffusion
    communication to
    Process
    members of a social
    system over a period of
    time.
    Elements of the Diffusion Process

    The Innovation

    The Channels of Communication

    The Social System

    Time
    What is innovation?
    The Innovation

    • Firm-oriented definitions
    – Product is “new” to the company
    • Product-oriented definitions
    – Continuous
    – Dynamically continuous
    – Discontinuous

    Chapter Fourteen Slide


    The Innovation
    Product Characteristics
    Relative • Degree to which consumers consider it superior
    Advantage to existing substitutes

    • Degree to which consumers feel it is consistent


    Compatibility with their present needs, values, and practices

    • The degree to which it is difficult to understand or


    Complexity use

    • The degree to which it can be tried on a limited


    Trialability basis

    • The degree to which its benefits can be observed,


    Observability imagined, or described

    Chapter Fourteen Slide


    Elements of the Diffusion Process

    The Innovation

    The Channels of Communication

    The Social System

    Time
    Chapter Fourteen Slide
    Channels of Communication

    • Channels of communication
    – Marketer to consumer
    – Consumer to consumer

    Chapter Fourteen Slide 10


    Elements of the Diffusion Process

    The Innovation

    The Channels of Communication

    The Social System

    Time
    Chapter Fourteen Slide
    The Social System

    • Modern social systems accept more innovation


    due to their:
    – Positive attitude toward change
    – Advanced technology and skilled labor force
    – Respect for education and science
    – Emphasis on rational and ordered social relationships
    – An outreach perspective where members interact
    with outsiders
    – A system where members can see themselves in
    different roles

    Chapter Fourteen Slide 13


    Elements of the Diffusion Process

    The Innovation

    The Channels of Communication

    The Social System

    Time
    Chapter Fourteen Slide
    Time

    • Purchase Time

    • Adopter Categories

    Chapter Fourteen Slide


    Customer Adoption Curve

    What are the forces leading to varying adoption rate:


    • Promotion and Awareness build up time
    • Resistance to change
    Customer Characteristics:
    • Innovators :
     technology enthusiasts
     venturesome
     enjoy tinkering with new products
    • Early adopters
     opinion leaders
     carefully search for products for competitive advantage
    • Early majority
     Adopt only after its proven
    • Late majority
     are skeptical conservatives
     risk averse,
     technology shy
     price sensitive.
    • Laggards
     are tradition-bound
     resist the innovation until the status quo is no longer defensible.
    The stages through
    which an individual
    consumer passes in
    Adoption arriving at a decision to
    Process try (or not to try), to
    continue using (or
    discontinue using) a new
    product.

    Chapter Fourteen Slide


    Stages in Adoption Process
    Table 14.4
    NAME OF STAGE WHAT HAPPENS DURING THIS EXAMPLE
    STAGE

    Awareness Consumer is first exposed to the Eric sees an ad for a 23-inch thin LCD
    product innovation. HDTV in a magazine he is reading.

    Interest Consumer is interested in the Eric reads about the HDTV set on the
    product and searches for manufacturer’s Web site and then goes
    additional information. to an electronics store near his
    apartment and has a sales person show
    him the unit.
    Evaluation Consumer decides whether or After talking to a knowledgeable friend,
    not to believe that this product Eric decides that his TV will fit nicely on
    or service will satisfy the need – top of the chest in his bedroom. He also
    a kind of “mental trial.” calls his cable company and finds out
    that he can exchange his “standard”
    cable box at no cost for an HDTV cable
    box.

    Chapter Fourteen Slide


    Stages in Adoption Process
    Table 14.4 (continued)
    NAME OF STAGE WHAT HAPPENS DURING THIS EXAMPLE
    STAGE

    Trial Consumer uses the product on a Since the HDTV set cannot be “tried”
    limited basis like a small tube of toothpaste, Eric buys
    the TV at this local electronics store on
    his way home from work. The store
    offers a 14-day full refund policy.
    Adoption If trial is favorable, consumer Eric loves his new HDTV set and expects
    (Rejection) decides to use the product on a many year of service from it.
    full, rather than a limited basis –
    if unfavorable, the consumer
    decides to reject it.

    Chapter Fourteen Slide


    Importance of Information Sources
    Figure 14.8

    Chapter Fourteen Slide


    Are all purchase decisions made in
    the same manner?
    FCB Grid
    Thinking Feeling
    High Involvement

    Informative Affective

    Model: Learn-feel-do Model: Feel-learn-do

    Ex: car, house Ex: jewellery, cosmetics,


    apparels

    Habit Formation Self-satisfaction


    Low Involvement

    Model: Do-learn-feel Model: Do-feel-learn

    Ex: House hold items Ex: cigarettes, liquor,


    chocolates, perfumes
    Consumer Decision
    Making
    Figure 15.3

    Chapter Fifteen Slide


    Decisions by functionally illiterate
    population

    • recognize brand symbols


    • prefer same retail outlet
    • establish relationship with store personnel
    • Buy small amount often ; reduce risk of
    cheating
    • most heavily influenced by celebrities,
    opinion leaders
    Thank You
    Prof. Rashmi Jain
    www.linkedin.com/in/profrashmijain
    Email:rashmi.jain@nldalmia.in

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