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Diffusion Theory: - Adoption Process - Characteristics of Innovations - Adopter Categories

1. Diffusion Theory describes how innovations spread through social systems over time via communication channels. 2. The adoption process involves 5 stages: awareness, interest, evaluation, trial, and adoption. 3. Characteristics like relative advantage, compatibility, complexity, and communicability influence the rate of adoption. 4. Adopter categories classify individuals based on their willingness to adopt innovations, from innovators to laggards.
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0% found this document useful (0 votes)
53 views12 pages

Diffusion Theory: - Adoption Process - Characteristics of Innovations - Adopter Categories

1. Diffusion Theory describes how innovations spread through social systems over time via communication channels. 2. The adoption process involves 5 stages: awareness, interest, evaluation, trial, and adoption. 3. Characteristics like relative advantage, compatibility, complexity, and communicability influence the rate of adoption. 4. Adopter categories classify individuals based on their willingness to adopt innovations, from innovators to laggards.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Diffusion Theory

Rogers – Diffusion of innovations


• Adoption process
• Characteristics of Innovations
• Adopter categories
The Adoption Process
1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption
Rate of Adoption can be explained
by these characteristics

Relative Advantage
Compatibility
Complexity
Divisibility
Communicability
Adopter Categories
• Classification of individuals in a market on
the basis of their innovativeness.
• Adoption as a result of human interaction in
a social system.
• Persuading innovators is crucial for
marketing purpose.
• Adoptions proceed more quickly in markets
where innovations were introduced late.
• Difference in Asian adopter behavior and
Western behavior – few Asian innovators –
why??
• Faster rates of diffusion found in Asia
compared with the US… Why???
Adopter Categories
Marketing in transitional economies
and less developed countries.
• Shortage of goods and services.
• Marketing needed and much desired by
consumers.
Marketing in transitional economies
and less developed countries.
• Low per capita income
• High inflation
• Wide income distribution gap
• High levels of taxation, import duties,, and other
bureaucratic hurdles.
• Lack of marketing awareness
• Fragmented communications and distribution
channels
• Inadequate distribution and logistics infrastructure.
Marketing in transitional economies
and less developed countries.
Suggestions to enter an LDC
 Look beyond per capita income
 Consider LDCs collectively
 Cost/benefit analysis of being the firt one to
enter
 Set realistic deadlines.
Marketing in transitional economies
and less developed countries.
Role of marketing
 Creating and delivering products that best
serve the needs of the people
 Design products according to needs and
income
 Appropriate marketing communications
Global Buyers
• Customer value
• How to increase value?
• Example – Toyota’s
significant gain in
American market in 1980s
• Hyundai
• Samsung/Sony (computer
monitor market)
Global Buyers
• When the company’s
perceived value is high, it
can charge more than the
competition for the same
product.
• To succeed in a market the
product’s perceived value
should be equal to or more
than the competitors.

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