Innovation Diffusion Concepts
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Questions and Answers

Which group of adopters tends to be the most resistant to new innovations?

  • Laggards (correct)
  • Innovators
  • Late Majority
  • Early Adopters

    • Early majority adopters are typically more socially mobile than innovators.

    False (B)

    What is the role of early adopters in the innovation adoption process?

    Opinion leaders who gather information and provide word-of-mouth support.

    The group that adopts innovations primarily due to social pressure rather than personal preference is called the ______.

    <p>late majority</p> Signup and view all the answers

    Match the adoption categories with their characteristics:

    <p>Innovators = Risk-takers who try new products first Early Adopters = Opinion leaders providing word-of-mouth Early Majority = Cautious consumers who wait for prior adopters Late Majority = Skeptical and adopt under social pressure Laggards = Reluctant adopters with limited social interaction</p> Signup and view all the answers

    Which type of innovation involves minor changes in behavior that are unimportant to the consumer?

    <p>Continuous innovation (B)</p> Signup and view all the answers

    Dynamically continuous innovation requires major changes in significant behaviors.

    <p>False (B)</p> Signup and view all the answers

    What are the two major phases of the diffusion process?

    <p>slow growth and rapid growth</p> Signup and view all the answers

    The more easily consumers can observe the positive effects of adopting an innovation, the more _______ its diffusion.

    <p>rapid</p> Signup and view all the answers

    Which of the following factors does NOT influence the speed of diffusion?

    <p>Triviality (A)</p> Signup and view all the answers

    Perceived risk only refers to the financial consequences of an innovation.

    <p>False (B)</p> Signup and view all the answers

    What characterizes discontinuous innovation?

    <p>Major changes in behavior of significant importance</p> Signup and view all the answers

    Flashcards

    Innovators

    They are the first to adopt a new product or innovation. They are risk-takers and willing to pay a premium for the latest products.

    Early Adopters

    They are opinion leaders who adopt a new product after innovators. They are highly respected and trusted by their peers, often influencing others to try new products.

    Early Majority

    They are the largest group and are more cautious. They adopt new products when the product is proven to be effective and reliable.

    Late Majority

    They are skeptical and hesitant to adopt new products. They typically adopt after the product has achieved mainstream acceptance and is considered safe.

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    Laggards

    They are the last group to adopt new products. They may be resistant to change or have limited access to information about it.

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    Innovation Diffusion

    The process of how new ideas, practices, or products spread through a market.

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    Innovation

    A new idea, practice, or product that is perceived as new by the relevant individual or group.

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    Continuous Innovation

    An innovation that involves minor changes in behavior that are not very important to the consumer.

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    Dynamically Continuous Innovation

    An innovation that requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual.

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    Discontinuous Innovation

    An innovation that requires major changes in a behavior of significant importance to the individual or group.

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    Compatibility

    How well the innovation aligns with the individual's or group's values and beliefs.

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    Relative Advantage

    How much better the innovation is perceived to meet a need compared to existing methods.

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    Complexity

    The ease with which an innovation can be understood and used.

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    Study Notes

    Innovation Diffusion

    • Innovation defined as a perceived new idea, practice, or product.
    • Three innovation categories: continuous, dynamically continuous, and discontinuous.
    • Continuous innovation involves minor behavioral changes.
    • Dynamically continuous innovation requires moderate changes in important behaviors or major changes in less important behaviors.
    • Discontinuous innovation demands substantial changes in highly important behaviors.

    Diffusion Process

    • Describes how innovations spread through markets (any size, from schools to societies).

    • Typical diffusion pattern: slow, rapid, and then slow growth.

    • Rate of diffusion influenced by factors:

      • Compatibility: Consistency with values/beliefs increases diffusion speed.
      • Relative advantage: Perceived improvement over existing methods accelerates diffusion.
      • Complexity: Easier to comprehend/use, faster diffusion.
      • Observability: Easier to see positive effects, faster diffusion.
        • Trialability: Easy low-cost/low-risk trials speed diffusion.
      • Perceived risk: Low perceived risk means faster diffusion (financial, physical, or social).
      • -Risk factors: likelihood of not performing as expected; consequence of failure, ability/cost to reverse negative outcomes.

    Innovation Adopter Categories

    • Innovations don't reach all consumers at once, different adopter categories emerge over time.
    • Categories (in order): innovators, early adopters, early majority, late majority, laggards.
    • Innovation adopter category percentages change over time as shown in the figure.
      • Innovators: Risk-takers, willing to bear monetary/social costs, and potential failures. Use external innovators as reference groups, and varied information sources. High education, high social mobility.
      • Early adopters: Opinion leaders, collect information (advertising, professional/interpersonal sources). Provide word-of-mouth encouragement. Usually well-educated, socially mobile.
      • Early majority: Cautious. Adopt after innovators and early adopters. Older, less educated, less socially mobile than previous groups. Information gathered mainly through interpersonal interactions.
      • Late majority: Skeptical, adopt mostly due to social pressure, not positive attitude towards innovation. Older, lower social status, limited social mobility.
      • Laggards: Reluctant to adopt, limited interactions and activities primarily within local communities.

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    Description

    This quiz explores the key concepts of innovation diffusion, including the definitions and categories of innovation: continuous, dynamically continuous, and discontinuous. It also examines the factors that influence the rate of diffusion in markets, such as compatibility, relative advantage, complexity, and observability.

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