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Factors Affecting the Diffusion of Innovation
The chances of a product's adoption and subsequent diffusion are largely dependent on its nature. The rate at which the diffusion of an innovation takes place is a function of the following ten factors:
- 1. Type of Target Group:
- 2. Number of People Involved in Decision Making:
- 3. Extent of Marketing Efforts Involved:
- 4. Need Fulfilment:
- 5. Compatibility:
- 6. Relative Advantage:
- 7. Complexity:
- 8. Observability:
- 9. Triability:
- 10. Perceived Risk:
1. Type of Target Group: The target market for the new product is an important factor in influencing the rate of diffusion. Some groups are more inclined to accept change than others. In general, affluent, young and highly educated groups tend to try and accept new products readily.
2. Number of People Involved in Decision Making: This refers to whether the decision is made by an individual or a group. If fewer individuals are involved in making the purchase decision, the innovation is likely to spread more rapidly. When two or more family members are involved in making the purchase decision, the diffusion will be slower than innovations that primarily affect one individual.
3. Extent of Marketing Efforts Involved: The diffusion of innovation is very significantly influenced by the extent of marketing efforts undertaken. No matter how wonderful an innovation, but unless sufficient numbers are informed and convinced of what it can do for them, the diffusion would be adversely affected. Thus, the rate of diffusion is not completely beyond the control of the marketer.
4. Need Fulfilment: The more involving and obvious the need that the innovation satisfies, the faster the diffusion. The rate of diffusion of antidandruff shampoos has been fast as they gained rapid trial among those who were uncomfortable with dandruff.
5. Compatibility: This refers to the degree to which the innovation is consistent with the individual's and group's needs, attitudes, beliefs and past experiences. The more its consistency, the faster its diffusion. Microwave
oven was introduced about three decades back in India but since it was not compatible with Indian family values, its diffusion has been rather slow. Internet banking or shopping is not consistent with established habits of most Indian consumers, resulting in very slow diffusion of this innovation.
6. Relative Advantage: If consumers perceive an innovation as better in meeting their relevant need compared to existing ones, the diffusion will be more rapid. While considering the relative product advantage, consumers consider both the cost and the performance. To be successful, an innovation must have either the performance or the cost advantage over existing alternatives. For example, newer versions of computer processors have performance advantage over earlier ones and hence their diffusion has been rapid.
7. Complexity: If an innovation is difficult to understand and also difficult to use, its diffusion would be slower. Product simplicity and ease of use are important factors in speeding up the process of diffusion. Computer manufacturers, such as IBM and Apple, have tried to overcome the initial complexity of using personal computers by communicating with consumers that their computers are user-friendly.
8. Observability: This refers to the ease with which consumers can observe the positive effects of adopting an innovation. The diffusion will be more rapid if the positive effects are easily observable. Products, such as cellular phones, fashion items and autos etc. are highly visible.
problem with low-cost
9. Triability: It is the degree to which a product can be tried before adoption. This is much less a
or low-risk items such as cold remedies, but cellular phones, fax machines and computers etc. can be demonstrated in actual use and tried on a limited scale. If consumers can purchase a product in small quantity, then trial is relatively easy.
10. Perceived Risk: The more the risk associated with trying a new product, slower the diffusion process. The risk in adopting an innovation can be financial, physical, performance, or social. For example, when microwave ovens were introduced, consumers expressed worries about physical risk from radiation.