Diffusion of Innovations - Consumer Behaviour - Lecture Slides, Slides of Consumer Behaviour

Download Diffusion of Innovations - Consumer Behaviour - Lecture Slides and more Slides Consumer Behaviour in PDF only on Docsity! Diffusion of innovations Discontinuous innovations Dynamically continuous innovations Continuous innovations Telephone Pager Fax Machine Telephone answering Machines, call forwarding, Call waiting, Voice Mail Caller ID Banking by telephone Call-prompting systems Nationwide paging Service Stock market quotation Devices Sports scores delivery Two-way paging Pager watch 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 Silent alert Message displays Built in alarm clock Interchangeable fashion Color cases Hold button Line-in-use indicator Redial button Auto dialing feature Touch-tone service 800 Numbers, 900 Numbers Barriers to Diffusion of an Innovation – on- line Banking TYPES OF BARRIERS DEFINITIONS AND EXAMPLES FUNCTIONAL BARRIERS: Usage barriers . Initial use requires a great deal of consumer learning . Continuing use requires total commitment to system . Partial or inconsistent use results in incorrect account balances Value barriers . Requires purchase of software and supplies . Generally has additional monthly fee Risk barriers . Performance risk is high . Economic risk is moderate . Social risk is low PHYCHOLOGICAL BARRIERS: Traditional barriers . Not the way the consumer is accustomed to paying bills, etc. Image barriers . Negative (“hard to use”) image of personal computers in general and on-line banking in particular The stage in the Adoption Process NAME OF STAGE WHAT HAPPENS DURING THIS STAGE EXAMPLES Awareness Consumer is first exposed to the Product innovation David sees an ad for a new digital camera in the newspaper. Interest Consumer is interested in the Product and searches for additional Information. David reads about the camera on the manufacturer’s Website, and then goes to a camera store near his Office and has a salesperson show him the camera. Evaluation Consumer decides whether or not To believe that this product or Service will satisfy the need – a kind of “mental trial.” After talking with a knowledgeable friend, David decides that this camera should be able to provide him with the photos he needs to use in Power Point presentations. He also likes the fact that it Uses “standard” floppy disks for storage. Trial Consumer uses the product on a limited basis Since a camera cannot be “tried” like a small bottle of a new shampoo, David buys the camera from a dealer offering a 14-day full refund policy. Adoption (Rejection) If trial is favorable, consumer decides to use the product on a full, rather than a limited basis- if unfavorable, the consumer decides to reject it. David finds that the camera is easy to use and the results are excellent; consequently, he keeps the digital camera. The Importance of time in the Diffusion Process TYPE OF TIME MEANING EXAMPLES Purchase time Time between awareness And purchase If you look at your car’s gas gauge and it reads “Empty,” you stop at the next gas station you come to. If you’re shopping for an additional VCR for your Home, you may take quite a while to make a purchase, as long as your present VCR is working properly. Adopter categories A classification scheme that indicates where a consumer stands, in rela- tion to others, when adopting a new product Innovators are the first to adopt a new product, and Laggards are the last Rate of adoption How long it takes a new Product or service to be Adopted by members of A social system Black-and-white TVs were adopted by consumers much more quickly than their manufacturers had Envisioned; in contrast, trash compactors have never Been widely adopted