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Rate of Diffusion: Rate of diffusion refers to the cumulative level of adoption of an innovation over time among groups. For example, it has taken a little over three decades since TV was introduced in India and not even 70% households own a TV set. Even adoptions of some other low-cost innovations are much slower in rural markets. Most of the households in rural do not own a telephone connection.
There are four major reasons that explain why innovations are adopted more quickly:
- 1. With the increase in household income, new products are likely to be more affordable.
- 2. Rapid technological advances require quicker adoption cycles.
- 3. As technology is becoming more standardized, it reduces consumers' risk perception associated with the adoption of a new product.
- 4. Information regarding innovation is communicated rapidly and is accessible to the consumers conveniently. Obviously, the more quickly consumers become aware and gain knowledge about a new product through mass media and Internet, the faster is communication to various groups.