Diffusion of Innovation Class XII WEEK (1)

8/2/2019 Diffusion of Innovation Class XII WEEK (1)

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Consumer Behavior,Consumer Behavior,

SCHIFFMAN & KANUK

DIFFUSION OF

INNOVATION


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OpinionLeadership

The process by whichone person (the

opinion leader)

informally influences

the consumption

actions or attitudes of

others who may be

opinion seekers oropinion recipients.


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What is Opinion Leadership?

Opinion

Leader

Opinion

Receiver

OpinionSeeker


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Examples of Opinion Leadership

During a coffee break, a co-worker talks

about the movie he saw last night and

recommends seeing it.

A person shows a friend photographs of his

recent Australian Outback vacation and the

friend suggests that using a polarizing filtermight produce better pictures.


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Special Issues

Opinion leaders are four times more likely

to be asked about political issues, three

times more likely to be asked about

computers or investments, and twice as

likely to be asked about restaurants

Information seekers seek a strong-tie

source when they know little about a topic,and weak-tie sources when they have

some knowledge


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Reasons for the Effectiveness of

Opinion Leadership Credibility

Positive and Negative Product

Information Information and Advice

Opinion Leadership Is Category-

Specific Opinion Leadership Is a Two-way

Street


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ViralMarketing

Buzz Marketing

Wildfire Marketing

Avalanche Marketing

These terms describe any strategy that

encourages individuals to pass on a

marketing message to others;

The marriage of email and word-of-mouth

communication
http://www.hotmail.com/


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Yahoos Buzz Index


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Figure : Factors Leading to Negative

Word-of-Mouth Behavior

Individual Factors

Product Involvement

Situational Factors

Attitudinal Factors

Negative

WOM

Likelihood

of

Repurchase-

+

+

+

+


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Motivations Behind Opinion

Leadership

The Needs of Opinion Leaders

The Needs of Opinion Receivers Purchase Pals

Surrogate Buyers versus Opinion Leaders


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Table : Measuring Opinion Leadership

SELF-DESIGNATING

METHOD

Do you influence

other people in their

selection of

products?

Each respondent is asked a series

of questions to determine the

degree to which he or she

perceives himself or herself to be

an opinion leader.

OPINION LEADERSHIPOPINION LEADERSHIP

MEASUREMENTMEASUREMENT

METHODMETHOD

SAMPLESAMPLE

QUESTIONS ASKEDQUESTIONS ASKEDDESCRIPTION OF METHODDESCRIPTION OF METHOD

SOCIOMETRICMETHOD Members of a social system areasked to identify to whom they

give advice and to whom they go

for advice.

Whom do you ask?Who asks you for

info about that

product category?


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Table : continued

OPINIONOPINION

LEADERSHIPLEADERSHIP

MEASUREMENTMEASUREMENT

METHODMETHOD

SAMPLESAMPLE

QUESTIONSQUESTIONS

ASKEDASKED

DESCRIPTION OF METHODDESCRIPTION OF METHOD

KEY INFORMANT

METHOD

Who are the most

influential people inthe group?

Carefully selected key informants in

a social system are asked todesignate opinion leaders.

Artificially places individuals in a

position to act as opinion leaders and

measures results of their efforts.

Have you tried the

product?

OBJECTIVE

METHOD


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Table : Profile of Opinion Leaders

GENERALIZED

ATTRIBUTES ACROSS

PRODUCT CATEGORIES

CATEGORY-SPECIFIC

ATTRIBUTES

Innovativeness

Willingness to talkSelf-confidence

Gregariousness

Cognitive differentiation

Interest

KnowledgeSpecial-interest media exposure

Same age

Same social status

Social exposure outside group


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The Interpersonal Flow of

Communication Two-Step Flow

A communication model that portrays opinion

leaders as direct receivers of information frommass media sources who, in turn, interpret and

transmit this information.

Multi-step FlowA revision of the traditional two-step theory that

shows multiple communication flows


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Figure : Two-Step Flow of

Communication Theory

Mass MediaMass MediaOpinion

Leaders

Opinion

Leaders

OpinionReceivers

(the masses)

OpinionReceivers

(the masses)

Step 1 Step 2


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Issues In Opinion Leadership and

Marketing Strategy Programs Designed to Stimulate Opinion

Leadership

Advertisements Stimulating OpinionLeadership

Word of Mouth May Be Uncontrollable

Creation of Opinion Leaders


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DiffusionDiffusionProcessProcess

The process by which

the acceptance of an

innovation is spread by

communication to

members of social

system over a period of

time.


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Elements of the Diffusion Process

The Innovation The Channels of Communication

The Social System

Time


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Product-Oriented Definitions

Continuous

Innovation

Dynamically

Continuous

Innovation

Discontinuous

Innovation


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Figure : Telephone Innovations

Telephone

Cell Phone

Fax Machine

Telephone answering machines

Call forwarding

Call waiting

Caller ID

Banking by telephone

Call-prompting systems

Hold button

Line-in-use indicator

Redial button

Auto dialing feature

Touch-tone service

800 Numbers900 Numbers

Ability to send/receive email

Incorporate PDA functions

Calendar/Phonebook

Voice-activated dialing

Switch from analog to

digital

Include camera

Ringer stylesPlay games

Fax modem

Mobile fax machines

Home office systems

(combined fax, copier,

computer printer)

Plain paper fax

Speed dial buttons

Delayed send

Copy function

Paper cutter

Discontinuous

Innovations

Dynamically Continuous

Innovations

Continuous

Innovations


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Figure : Ad

Stressing Easeof Use and

Convenience


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AdopterAdopterCategoriesCategories

A sequence of

categories that

describes how early (or

late) a consumer adoptsa new product in

relation to other

adopters.


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Figure : Adopter Categories

Innovators

2.5%

Early

Adopters

13.5%

Laggards

16%

Percentage of Adopters by Category Sequence

Early

Majority

34%

Late

Majority

34%


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Innovators: Description

2.5% of population Venturesome

Very eager to try new ideas Acceptable if risk is daring More cosmopolite social relationships

Communicates with other innovators


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Early Majority: Description

34% of population Deliberate

Adopt new ideas just prior to the average

time Seldom hold leadership positions

Deliberate for some time before adopting


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Table : Stages in Adoption Process

NAME OF

STAGE

WHAT HAPPENSDURING THIS

STAGE

EXAMPLE

Awareness

Consumer is first exposed

to the product innovation.

Janet sees an ad for a new MP3 player in

the magazine she is reading.

Interest

Consumer is interested in

the product and searches

for additional

information.

Janet reads about the MP3 player on the

manufacturers Web site and then goes to

an electronics store near her apartment and

has a salesperson show her a unit.

Evaluation

Consumer decides

whether or not to believethat this product or

service will satisfy the

need--a kind of mental

trial.

After talking to a knowledgeable friend,

Janet decides that this MP3 player willallow her to easily download the MP3 files

that she has on her computer. She also feels

that the units size is small enough to easily

fit into her beltpack.


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Figure : An Enhanced Adoption Process

Model

Pre-existing

problem or

Need

Awareness Interest Evaluation Trial

Adoption

or

Rejection

Postadoption or

Postpurchase

Evaluation

Evaluation

Adoption or Rejection

Discontinuation

Discontinuation or

RejectionRejection


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Figure : The Relative Importance of Different

Types of Information Sources in the Adoption

Process

Importance

High

Low

Awareness

Adoption

Trial

Evaluation

Interest

Personal and

interpersonal

sources

Impersonal

mass-media

sources


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Diffusion of Innovation Class XII WEEK (1)

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