Chapter 14 part 2

Question 1

Diffusion process (2) explain the channels of communication:

Answer 1

✓ Innovation spreads quickly if there is communication between marketer and consumer (or consumer and consumer) :
• Interactive marketing messages
• Social networks – deliver content and strengthen customer relationships
• Viral marketing – consumers play role in increasing brand awareness
• WOM
✓ The internet has become a major source of information for consumers (Both interpersonal and personal)

Question 2

Diffusion process (3) explain the social system:

Answer 2

A physical, social, or cultural environment to which people belong and in which they function. (market segment)

Question 3

Modern social systems accept more innovation due to their:

Answer 3

– Positive attitude toward change
– Advanced technology and skilled labor force
– Respect for education and science
– members interact with outsiders

Question 4

Diffusion process (4) time

Answer 4

Backbone of diffusion process

Question 5

How does time pervade the study of diffusion process in three related ways?

Answer 5

1. amount of purchase time
2. identification of adopter categories
3. rate of adoption

Question 6

Expand upon purchase time:

Answer 6

Time lapse between consumer’s initial awareness of new product/service to the point where they will purchase or reject the product. Short individual purchase time = faster diffusion time

Question 7

List and explain the 5 consumer adopter categories:

Answer 7

1. Innovators – first to buy; geek class; 2.5%
2. Early adopters – will buy shortly after introduction; 13.5%
3. Early majority – first half of mass market who would purchase item; 34%
4. Late majority – second half of the mass market who would purchase item; 34%
5. Laggards – last to purchase; 16%

Question 8

How are non-adopters not always equal?

Answer 8

▪ Two categories: non-adopters and prospective adopters
▪ The difference between adopters and prospective adopters is their perceptions of the product
▪ The difference between non-adopters and prospective adopters is the varying degrees of technological sophistication

Question 9

Explain the rate of adoption

Answer 9

The period needed for a product to be adopted by members of a social system
Diffusion of products are becoming more rapid all over the world
Marketers want rapid penetration to ensure that market leadership is established for their firm before the competition starts

Question 10

Define the adoption process:

Answer 10

The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.

Question 11

What are the 5 stages in the adoption process?

Answer 11

1. Awareness - exposed
2. Interest – searches for additional info
3. Evaluation – decides whether or not to believe product/service will satisfy the need (mental trial)
4. Trial – use of product on limited basis
5. Adoption or rejection - Favourable trial – use the product on a full basis, unfavourable trail – reject

Question 12

Enhanced adoption process model

Answer 12

look at slides

Question 13

importance of information sources

Answer 13

look at slides

Question 14

Define the consumer innovator

Answer 14

relatively small group of consumers who are the earliest purchasers of a new product.

Question 15

Characteristics of consumer innovator:

Answer 15

– Education
– Social interaction
– Opinion leadership
– Cosmopolitanism
– Optimism
– Venturesomeness
– Social status