Buyer Behavior Diffusion of Innovation. Definition of Opinion Leadership The process by which one...

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Buyer Behavior

Diffusion of Innovation

Definition of Opinion Leadership

The process by which one person, the

opinion leader, informally influences the

actions or attitudes of others, who may be

opinion seekers or merely opinion

recipients.THEY ARE EFFECTIVE BECAUSE THEY:

Are credible Provide positive and negative product information Provide both information and advice Are specialized and category-specific Are both providers and recipients of information

Opinion Leadership Measurement

Self-designating method

Sociometric method

Key informant method

Objective method

Combination methods

What Makes an Opinion Leader?

Knowledge and interest Consumer innovativeness Media habits Personal characteristics

Personality traits Social class Demographic factors

Profile of Opinion Leaders

InnovativenessWillingness to talkSelf-confidenceGregariousnessCognitive differentiation

Generalized AttributesAcross Categories

Profile of Opinion Leaders

InterestKnowledgeSpecial-interest media

exposureSame ageSame social statusSocial exposure outside group

Category-SpecificAttributes

One-Step Communications Flow

Two-Step Communications Flow

Opinion Leader

Multi-Step Communications Flow

Interpersonal Communication Categories

High on both opinion leadership and opinion seeking.

Opinion Seeking Scores

High Low

SociallyIntegrated

Socially Integrated

High on opinion leadership, low on opinion seeking.

SociallyIntegratedSocially

IntegratedSocially

Independent

SociallyIndependent

High Low

Socially Independent

Low on opinion leadership, high on opinion seeking.

Integrated

SociallyDependent

SociallyIndependent

High Low

Socially Dependent

Low on both opinion leadership and opinion seeking.

Integrated

SociallyDependentSocially

DependentSociallyIsolated

SociallyIsolated

SociallyIndependent

High Low

Socially Isolated

Definitions of “Innovation”

Firm-Oriented Definitions Based on newness to the firm.

Product-Oriented Definitions Based on new product attributes.

Market-Oriented Definitions Based on proportion who have purchased.

Consumer-Oriented Definition Based on consumer judgment of newness.

Telephone-Related Innovations

Answering machineCall forwardingCall waitingVoice mailCaller IDBanking by phoneCall prompting

Hold buttonLine-in-use indicatorRedial buttonAuto dialing featureTouch-tone service800 numbers900 numbers

Nationwide pagingStock market quotesSports scoresTwo-way pagingPager watch

Silent alertMessage displaysBuilt-in alarm clockFashion colors

Fax modemMobile fax machinesHome office systems (fax, copier, comp., etc.)

Plain paper faxSpeed dialingDelayed sendCopy function

Telephone

Fax Machine

Discontinuous Dynamically Continuous Continuous

Influences on Diffusion

Relative advantage

Compatibility

Complexity

Trialability

Observability

Consumer-Dependent Relative advantage Compatibility Perceived risk Complexity Effect on other

innovations Consumer-Independent

Trialability Divisibility Reversibility Realization Communicability Form of innovation

Innovation Characteristics

Psychological Variables Perception Motivation Personality Value orientation Beliefs Attitudes Previous experience

Demographics Age Education Income

Consumer Characteristics

Types Marketer-controlled

versus nonmarket-controlled

Personal versus impersonal

Characteristics Credibility Clarity Source similarity Informativeness

Propagation Mechanisms

The Diffusion Curve

Innovators

Innovators — 2.5% — VenturesomeVery eager to try new ideas; acceptable if risk is daring; more cosmopolite social relationship; communicates with other innovators

The Diffusion Curve

2.5% 13.5%

Innovators

EarlyAdopters

Early Adopters — 13.5% — RespectMore integrated into local social system; the persons to check with before adopting a new idea; greatest number of opinion leaders; role models

The Diffusion Curve

2.5% 13.5% 34%

Innovators

EarlyAdopters

EarlyMajority

Early Majority — 34% — Deliberate Adopt new ideas just prior to the average time; seldom hold leadership positions; deliberate for some time before purchasing

The Diffusion Curve

2.5% 13.5% 34% 34%

Innovators

EarlyAdopters

LateMajority

EarlyMajority

Late Majority — 34% — Skeptical Adopt new ideas just after the average time; adoption may be economic necessity and from peer pressure; approach innovation cautiously

The Diffusion Curve

2.5% 13.5% 34% 16%34%

Innovators

EarlyAdopters

LateMajority Laggards

EarlyMajority

Laggards — 16% — TraditionalLast people to adopt an innovation; most parochial in outlook; oriented toward the past; suspicious of the new

Innovation Adoption Process

AWARENESS — Consumers learns the brand name and product attributes.

INTEREST — Consumers relate the product benefits to their own needs.

EVALUATION — Consumers compare the goods with existing alternatives.

TRIAL — Consumers obtain direct or vicarious product experience.

ADOPITON — Consumers choose the innovation as a permanent solution.

Innovation Decision Process

KNOWLEDGE — Exposure and some knowledge of function.

PERSUASION — Favorable or unfavorable attitudes are formed.

DECISION — Choice to adopt or to reject innovation.

IMPLEMENTATION — Innovation is put into use by consumer.

CONFIRMATION — Seeks reinforcement of decision or possible reversal.

Relative Information Importance

Personal andinterpersonalsources

Impersonalmass-mediasources

Buyer Behavior Diffusion of Innovation. Definition of Opinion Leadership The process by which one...

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