Factors affecting the rate of diffusion and consumer adoption of newly launched products

Factors AffectingCONSUMER ADOPTION

OF New Products

Steps in

Consumer Adoption….

Awareness…

Interest…

Evaluation…

Trial…

Adoption…

Factorsinfluencing

Consumer Adoption….

Readiness to try new products

And Personal Influences

Factor 1

Based on Readiness to try new productsConsumers are divided into :

• INNOVATORS

• EARLY ADOPTERS..

• EARLY MAJORITY..

• LATE MAJORITY..

• LAGGARDS…

Personal Preferences…

Effect one person has over another persons attitude...

Characteristics Of

Innovation

Factor 2

• Relative Advantage

Original Product Low/no Rel. Advantage High Rel. Advantage

• Compatibility

• For a guy in texas ?Compatible• For a guy in Wisconsin? Not Comaptible

• Complexity…

Relatively Simple..Very complex.. Very simple..

• Divisibility…

Divisible..Not Divisible..

The degree to which an innovation may be sampled or tried out...

• Communicability…

Communicable....Not communicable..

OrganisationsReadinessTo Adopt

Innovation

Factor 3

RECAP

Factors Affecting Adoption

• Readiness to try New products

• Characteristics of the Innovation

• Organisations ’readiness to adopt innovation

Thank You !

Chandra Has Dondapati