Classification of Adopters
Adopters can be classified into five groups based on the time when they adopt. Innovators: The first 2.5 per cent to adopt innovation.
Early adopters: The next 13.5 per cent to adopt. Early majority: The next 34 per cent to adopt. Late majority: The next 34 per cent to adopt. Laggards: The final 16 per cent to adopt. Innovators
Innovators are venturesome risk takers. They are younger, more educated and socially mobile. They have the capacity to absorb risk associated with the new product. They are cosmopolitan in outlook, are aware and make use of commercial media, and are eager to learn about new products, are progressive, ready to use new products.
Early adopters
They take a calculated risk before investing and using new innovations. They are opinion leaders and provide information to groups, but they are also concerned about failure. Therefore, they weigh advantages and disadvantages of the product before plunging in for a purchase.
Early majority
They tend to be more continuous and use the product after the innovators and early adopters seem to be satisfied with it. They are elders, well educated and less socially mobile. They rely heavily on inter-personal source of in- formation. They constitute 34 per cent of the consumers.
Late majority
They are doubtful and skeptical about the innovation of new products. They tend to use the product not so much because of innovation, but because of other pressures, non-availability of the product and social pressures. They have less social status, and are less socially mobile than the previous group.
Laggards
They are more traditional. They possess limited social interaction and are oriented to the past. They adopt the innovations with great reluctance. They constitute a small portion of 16 per cent of the consumers.
As depicted in figure 4.4 below adopter categories are generally depicted as taking on the characteristics of a normal distribution i.e., a bell-shaped curve that describes the total population that ultimately adopts a product.
Figure 4.4 – Stages of Diffusion Non adopter Categories
A classification of the non-adopter categories would include:
a. The unaware group: Those consumers who are not aware of the new product
b. Symbolic rejectors: Who, though aware of the product, have decided against buying it.
c. Symbolic adopters: Who know the product will be useful or them but have not tried it.
d. Trial adopters: Who have tried the product and also rejected the same.
Adopter
Category Description
Relative percentage within which the
population that eventually adopts
Innovators
Venturesome-very eager to try new ideas; acceptable if risk is daring; more cosmopolite social relationships; communicates with other innovators
2.5%
Early Adopters
Respect- more integrated into the local social system; the persons to check with before adopting a new idea; category contains greatest number of opinion leaders; are role models
13.5%
Early Majority
Deliberate-adopt new ideas just prior to the average time; seldom hold leadership positions; deliberate for some time before adopting
34.0%
Late majority
Skeptical-adopt new ideas just after the average time; adopting may be both an economic necessity and a reaction to peer pressures; innovations approached cautiously
34.0%
Laggards
Traditional-the last people to adopt an innovation; most ―localite‖ in outlook; oriented to the past; suspicious of the new
16.0% Table 4.5. Adopter categories
Role of Personal Influence
Personal influence is another important factor, which plays a role in the adoption process of new products. This refers to what effect the statements made abut ‗a new product‘ by one person will have on another person‘s change in attitude or probability. This means that based on the comments or views expressed by ones personal friend or acquaintance one may change the decision to adopt a new product or innovation. It is usually observed that consumers and especially women prefer to consult one another‘s friends and value the opinions expressed by them about new products, the quality differences among the different brands, store at which to purchase to experience shopping and so on.
Market strategy related to diffusion.
There are differences in the early purchasers or innovators and late purchasers (Laggards). The strategy for the target market adopted is a "moving target market" approach. First the general target market is selected, and then the focus shifts to innovators, early adopters, early majority, late majority and laggards. This takes place as the product keeps getting acceptance from the consumers. There is then a change in the media and advertising themes for different target groups.
Diffusion enhancement strategies
The idea is to find out the diffusion inhibitors and to eliminate them for the enhancement of diffusion. For this the diffusion determinants are analysed, and diffusion strategies framed, as given in table below.
Diffusion Determinant Diffusion inhibitor
Diffusion enhancement strategies
1. Type of group Conservative Try other markets modern traditional and consumer
2. Perceived risk High Give guarantees, reduce risk by endorsing with credible sources
3. Type of decision Group
Choose media to reach all decisions deciders and provide conflict reduction themes
4. Marketing effort Limited Extensive and aggressive marketing effort
5. Trial Difficult
Distribute free samples to early adopters. Use high service outlets
6. Fulfillment of felt need Weak Show importance of benefits use extensive advertising
7. Competibility Conflict Stress attributes consistent with values and norms
8. Relevant advantage Low Lower the price-redesign the product
9. Complexity High
Use extensive marketing effort. Use skilled sales force. Use demonstration of product
10. Observability Low
Expose the product more through promotion and advertising
Table 4.6. Diffusion enhancement strategies
These diffusion inhibitors have to be analysed, and strategies formulated accordingly. Key Terms - Opinion Leader - Opinion receiver - Opinion seeker - Two-step flow of communication theory - Multistep flow of communication - Market mavens - Diffusion of innovations - Diffusion process - Innovations - Discontinuous innovation - Dynamically continuous innovation - Continuous innovations - Innovators - Early adopters - Early majority - Late majority - Laggards - Enhancement strategies
Self Practice Questions
1) Explain Opinion leadership. Distinguish between opinion leaders and opinion receivers.
2) What are the characteristics of an opinion leader? 3) Give an account of the profile of opinion leaders.
4) Why is an opinion leader a more important source of product information than an advertisement for the same product?
5) Describe about the frequency and overlap of opinions in information flow.
7) Explain diffusion of innovations.
8) Describe the various elements in the process of diffusion. 9) Explain the influence of product characteristics on diffusion. 10) Explain the various categories of adopters of products.
11) Discuss the market strategies due to diffusion for consumer behaviour. --- UNIT - III Lesson Outline 1. Consumer perception 2. Learning 3. Attitudes 4. Motivation 5. Personality –
6. Psychographics, values and lifestyles.