Customer Adoption & Diffusion Flashcards
Define ‘Involvement’:
Rothschild, 2001
- There is no commonly accepted definition but the main thoughts are that it contains 3-5 components
& a state of motivation, arousal or interest
What is PII?
Zaichkowsky, 1985
Personal Involvement Inventory
- Suggested high & low involvement products
Discuss the 2 levels of involvement suggested by Rothschild, 1984
Rothschild, 1984
- High involvement products: use more processing & are generally a lengthier process (external searching)
e. g. car, house - Low involvement products: use memory, thought and knowledge
e. g. sandwich, drink
Give the 3 stages of involvement proposed by Bloch & Richins, 1983
Bloch & Richins, 1983
- Personal: About what pushes you towards a product
- Physical: About what pushes the product towards you, differentiation (?)
- Situational: What something that temporarily increases your interest towards a product (sale?)
Give the 3 stages of decision making proposed by Rothschild, 1984
Rothschild, 1984
- High or low
- Processing (searching for information
- Evaluating alternatives
How many stages in the Product Life Cycle (PLC)?
Baines et al, 2011
- 5
What are the stages of the PLC?
Baines et al, 2011
- Development
- Introduction
- Growth
- Maturity
- Decline
Describe the Introduction stage of the PLC:
Baines et al, 2011
- The riskiest stage of the PLC as its the most expensive
- Lots of advertising & other communication tools: costly
- Low survival rate at this stage
Describe the Growth stage of the PLC:
Baines et al, 2011
- A sharp rise in sales & profits should be seen
- Distribution & availability becomes greater
- Advertising still needed as product is not in the mass market yet
Describe the Maturity stage of the PLC:
Baines et al, 2011
- Once the majority of consumers have been won over, this stage is reached & competition has been fought off
- Brand is well known and easily recognisable
- Sales begin to plato
- Maximum profits are made
- Brands have the potential to diversify
- Advertising at this point is just concerned with highlighting the difference between the product & its competition
- Price is also lowered
Describe the Decline stage of the PLC:
Baines et al, 2011
- The customers preference actually change (their values & beliefs) as there is superior technology available
- Advertising doesn’t stop but is reduced dramatically
- Distribution also becomes very selective and is moved to more targeted places, dropping the less successful
What is adoption?
This is about how customers react and interact with new products. This is NOT a uniform process and can happen at different times/speeds
What is diffusion?
How much the products are taken up, and how they are spread
What is one model of diffusion?
Rogers S-Curve
How many stages does Rogers S-curve as a model of diffusion contain?
5
Outline the stages of Rogers S-Curve model:
Baines et al, 2011
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggards
Explain the stage of innovators as part of Rogers S-Curve model as a process diffusion:
Baines et al 2011
Innovators (2.5%):
- 1st to try new product, tend to be educated , young, confident and financially strong
- Actively seek out new information
- More likely to take risks
- Cannot mass market to them as too smaller group, specialist stores must be used
Explain the stage of Early Adopters as part of Rogers S-Curve model as a process diffusion:
Baines et al 2011
Early Adopters (13.5%)
- This stage has the potential to accelerate adoption process as it can contain many opinion leaders
- Tend to be younger, above average education & financially stable & are the most communicative stage!
- These individuals are still looking for information & are risk takers, as the product may not be finalised
Explain the stage of Early Majority as part of Rogers S-Curve model as a process diffusion:
Baines et al, 2011
Early Majority (34%)
- Product is moving into the mass market and is therefore becoming less risky
- Above average age and education, social status and income
- Distribution is wider and more intensive
- Price becomes more competitive whilst the social pressure rises
- Mass marketing is conducted
Explain the stage of Late Majority as part of Rogers S-Curve model as a process diffusion:
Baines et al, 2011
Late Majority (34%)
- These people are more skeptical of new ideas/innovations and usually only adopt because of social and economic factors
- Below average education, social status and income
- Product is now completely mass market
Explain the stage of Laggards as part of Rogers S-Curve model as a process diffusion:
Baines et al, 2011
Laggards (16%)
- Very suspicious of new things
- Will very reluctantly take accept it if at all
- Difficult and hard to reach by normal means of communication
- Lower socioeconomic status, tend to be older people
What is an opinion former?
Someone who has formal training qualifications or experience in a subject area and is seen as an expert
What is an opinion leader?
These are individuals who are influence others as they are perceived as skilful. They generally seek information and are the ‘early adopters’ in Rogers S-Curve diffusion theory
What is an opinion follower?
They seek guidance from either opinion formers or leaders
