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Diffusion of innovations

Nikiforov Alexander
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Introduction to the Diffusion of Innovations

The diffusion of innovations is a concept developed in 1962 by sociologist Everett Rogers, which explains how and at what speed new technologies and ideas spread among consumers. This process does not happen instantly; it can be characterized as sequential and stretched over time. In the initial stage, the most active users, known as innovators, adopt innovations immediately, while more cautious consumers may delay their purchase until a certain critical mass of positive feedback is achieved.

Rogers classified users into several categories based on their level of interest and readiness to adopt innovations. This knowledge helps marketers develop effective promotion strategies targeting the needs of various consumer groups. It is important to understand that public perception of novelties develops gradually: from the first enthusiasts to those who make a purchase decision only after prolonged observation.

Elements of the Diffusion of Innovations Theory

The diffusion of innovations theory includes several key components, each playing an important role in the spread of new ideas and technologies:

1. Innovation

Innovation can take various forms: it can be a new product, service, or solution capable of meeting user needs. For example, the iPhone, introduced in 2007, was a true revolution due to its touchscreen, which allowed users to operate the device with a light touch. However, innovation can also be a simple solution, such as a vegetable slicer that cuts vegetables in an unusual way.

2. Communication Channels

The ways of disseminating information about innovation vary from free (friends' recommendations, SEO promotion) to paid (media advertising, contextual advertising). Effective use of communication channels allows reaching the target audience and increasing awareness of the product.

3. Time

The process of adopting an innovation is stretched over time, starting from the announcement to the moment the product becomes widely available. It is essential to manage the timing of market entry correctly to capture consumer interest as effectively as possible.

4. Groups of People

Rogers identified five main groups of consumers based on their attitude towards innovations:

  • Innovators: 2.5% of users who are the first to adopt innovations and actively share their opinions.
  • Early Adopters: 13.5% of consumers who seek to acquire the product as soon as possible and actively participate in its promotion.
  • Early Majority: 34% of users who wait for reviews and quality assessments before purchasing.
  • Late Majority: 34% of people who are willing to buy the product only when they are completely confident in its quality.
  • Laggards: 16% of users who adopt innovations only when no alternatives are available.

Interestingly, the same person may belong to different groups depending on the type of innovation. For example, they may use an old car for a long time, ignoring new models, but often change televisions for new technologies.

Stages of the Innovation Adoption Process

The innovation adoption process consists of several key stages that help to understand how consumers perceive and adopt innovations:

1. Awareness

At this stage, users become aware of the new product. This can occur either through recognizing a problem or through actively exploring the innovation. Brands use marketing campaigns to disseminate information, as Apple does before launching a new product.

2. Persuasion

Once the information reaches the consumer, they begin to evaluate how suitable the innovation is for them. It is important to communicate the advantages of the new product and show how it solves existing problems.

3. Decision

At this stage, the user makes a decision to purchase. Conviction in the correctness of their choice can be reinforced by offering trials or promotions.

4. Implementation

When the innovation begins to be used, the consumer seeks information on how to apply the product and what challenges may arise. Companies provide detailed instructions and support to facilitate the process.

5. Confirmation

The user strives to ensure the correctness of their choice, and if they encounter negative information, it may lead to abandoning the product. Therefore, it is important to support the customer by providing quality service and responding promptly to feedback.

Forces of Progress in Decision Making

To accelerate the adoption of innovations, it is useful to utilize the "Forces of Progress" tool from the JTBD methodology, which includes four key aspects:

  • Problems with the Current Solution (Pull): it is necessary to demonstrate what changes make the old solution ineffective.
  • Advantages of the New Solution (Push): focus on how the new innovation addresses existing problems.
  • Fears and Anxieties (Anxiety): reduce the level of uncertainty by making the new solution easy to use.
  • Habits: identify and eliminate barriers that hinder the transition to the new solution.

By analyzing these forces, companies can more effectively promote their innovations and accelerate their adoption among consumers.