New Product Adoption and Diffusion Adoption processAdoption process: The decision-making activity of an individual through which the new product is accepted. Stages in Adoption Process: –Awareness –Interest –Evaluation –Trial –Adoption –Confirmation DiffusionDiffusion: The process by which an innovation is spread through a social system over time.
Adopter Categories Researchers have identified five categories of individual adopters for new products: –Innovators — 3% of the market. –Early adopters — 13% of the market. –Early majority — 34% of the market. –Late majority — 34% of the market. –Laggards — 16% of the market. In addition, some individuals — nonadopters — never accept the innovation.
Five characteristics affect the adoption rate for new—especially truly innovative—products. Evaluation of new safer baseball for youngsters: –1. Relative advantage—superior to current balls in terms of safety but not tradition. –2. Compatibility—coincides with cultural values and experiences of parents but not of coaches. –3. Complexity—no problem understanding. –4. Trialability—ball can be easily tested. –5. Observability—can see a youngster who’s hit with the new ball dust off and trot to first base. Characteristics Affecting Adoption Rate
Organizing for Product Innovation Types of Organization –Product-planning committee –Brand manager –New product department –Venture team