Lecture 8 Flashcards
New product diffusion theory
what is new product diffusion theory
addresses how a new innovation is assimilated into a social system over time
what are 2 processes in new product diffusion theory
adoption process
diffusion process
what is adoption process
describes the steps an adoption unit goes through from the time the innovation becomes known to adoption/rejection
what is diffusion process
describes the spread of an innovation over time across a population of potential adopters
what are the steps in adoption process
knowledge -> persuasion -> decision -> implementation -> confirmation
what are prior conditions
previous practice
felt needs/problems
innovativeness
norms
what characteristics influence knowledge
socio economic characteristics
personality variables
environment
what characteristics of the innovation influence persuasion
relative advantages
trialability
observability
complexity
compatability
what are the people in the adoption curve
innovators, early adopters, early majority, late majority, laggards
who to target - traditional view
innovators and early adopters, they influence the rest
who to target - opposing view
majority, because the innovators and early adopters are not representative for the population
what are 2 types of consumers
visionairies and pragmatists
what do visionaries look for
the newest thing
performance features
coolness
what do pragmatists look for
works well
easy to use
not so expensive
what to communicate to innovators and early adopters
tech content
leading edge nature of technology
what distribution to use for innovators and early adopters
channels that enable high content and selective reach
what to communicate to early majority
product completeness
ease of use
consistency with life
no detailed tech info
what distribution to use for early majority
channels with high reach and high credibility
what to communicate to late majority
reliability
simplicity
cost-effectiveness
what are consumer characteristics
socio demographic variables
psychographic variables
communication behaviour
what is homophily
degree to which a pair of individuals who communicate are similar
what is heterophily
degree to which a pair of individuals who communicate are different
when are consumers more likely to engage in in WOM
expensive product
high product involvement
un frequent purchase
high perceived risk
what are direct network externalities
utility is affected by number of users (vb whatsapp)
what are indirect network externalities
utility is affected by number of complementary products
what are global network externalities
consumer takes an entire social system into account when considering the impact of the number of adopters on utility
what are local network externalities
consumer takes close social network into account when considering the impact of the number of adopters on utility
what is the diffusion curve
shows cumulative number of adopters over time
what is rate of diffusion
speed at which sales occur
what is pattern of diffusion
dhape of diffusion curve
what is potential penetration level
max cumulative adoption over time
