Innovation Diffusion Theory Overview

What defines the early majority in the adoption process?

Laggards are the first group to adopt a new innovation.

Who are the opinion leaders in their local reference groups?

The group that is generally more educated and socially mobile than their peers is known as the ______.

Match the adopter categories with their characteristics:

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

The rate of diffusion of innovation is independent of factors such as compatibility and complexity.

What is the term for the theory that explains how innovations spread through communication channels?

The innovation diffusion process typically begins with a period of ______ growth followed by rapid growth.

Match the types of innovation with their characteristics:

Which of the following factors can speed up the diffusion of innovation?

Perceived risk does not affect the adoption of new innovations.

What happens to the growth rate of innovation diffusion after a period of rapid growth?

Innovation Diffusion Theory

Innovation is an idea, practice, or product perceived as new by a relevant individual or group.
Innovations can be categorized as:
- Continuous: minor behavioral changes
- Dynamically continuous: moderate change in important behavior or major change in less important behavior
- Discontinuous: major changes in significant behaviors
Diffusion is the spread of innovations throughout a market (ranging from schools to entire societies).
Diffusion patterns typically follow a similar curve: slow growth, rapid growth, and slow growth.
Factors affecting the rate of diffusion:
- Compatibility: alignment with values/beliefs
- Relative advantage: perceived usefulness compared to existing options
- Complexity: ease of understanding and use
- Observability: how easily the positive effects are seen
- Trialability: ease of low-cost or low-risk trial
- Perceived risk: financial, physical, or social risk (incl. probability of failure, consequence of failure, and ability/cost to reverse).

Innovation Adopter Categories

Innovation adoption progresses through stages, from early adopters to laggards.
Categories include:
- Innovators: Risk-takers, use various sources for information, more educated and socially mobile; willing to bear monetary and social costs of failure.
- Early Adopters: Opinion leaders, gather information from various sources (innovators, advertising, professional and interpersonal), influential.
- Early Majority: Cautious, adopt after innovators and early adopters, generally older, less educated, and less socially mobile than innovators and early adopters, they gather information from interpersonal sources.
- Late Majority: Skeptical, adopt due to social pressure rather than positive views, older, lower social status and social mobility.
- Laggards: Reluctant adopters, limited social interaction, primarily within local communities.

Explore the concept of Innovation Diffusion Theory, which explains how new ideas, practices, or products spread among individuals or groups. This quiz covers key categories of innovations, factors influencing diffusion, and the typical patterns observed. Test your understanding of how innovations impact society and markets.