Innovation

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Terms in this set (...)

Innovation
any product or service that the customer perceives to be new
Types of innovation
- new style
- new manufacturing technique
- variation on an existing product
- a new way to deliver the product
- new packaging
Diffusion of innovation
new product spreads through new population
Types of Adopters
- Innovators
- Early adopters
- Early majority
- Later majority
- Laggards
Innovators
the first to buy, will be novel products and they are risk takers
Early adopters
have many of the same characteristics as innovators however they have a higher degree/concern for social acceptance. They see innovators as opinion leaders
Early majority
sometimes called late adopters as they hold off on purchasing because they are more risk conscious
Late majority
late adopters they are the mainstream public
Laggards
last to adopt product
Behavioural demands of Innovation
-continuous innovation: refers to a modification of an existing product
-dynamically continuous innovation: a more pronounced change in an existing product
-discontinuous innovation: creates major changes in the way we live
Prerequisites for successful adoption
-Compatibility: innovation is compatible with consumers lifestyle
-Trial-ability: experimentation with product
-Complexity: product should be low complexity
- Observability: easily to observe products more likely to adopt them
- Relative Advantage: what advantages does product have over other alternatives
Innovation decision process
1. knowledge -> create brand awareness, minor or major innovation, prior experience, need recognition, social norms
2. persuasion -> do they form good or bad attitudes surrounding product
3. decision -> adopt or reject innovation
4. implementation
5. confirmation