Arnould

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Chapter
17
Consumer Innovation
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Objectives

• Distinguish characteristics of innovations that
  influence their rate of diffusion and help
  determine their market success.
• Distinguish diffusion and adoption processes.
• Describe reasons for resistance to change and for
  discontinuance.
• Describe strategies for changing attitudes and
  behavior.
• Identify and distinguish opinion leaders, market
  mavens, and innovative consumers important in the
  diffusion of innovations.
• Describe differences among consumers based on
  their time of adoption of innovations.

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Innovation

• Capitalism encourages the creation of new
  markets, new technologies, and new forms of
  industrial organization.
• Innovation and Change
• Innovation and change are the heart of marketing.
• While some marketers ask consumers to be
  innovative, in terms of what they buy, how they
  buy, and where to buy, others encourage consumers
  to be conservative and resistant to change.
• Innovation refers to new things and ideas and new
  ways of behaving and interacting with things
  (symbolic and technological).
• It is defined by individuals and social groups.
• It include ideas, business practices, behaviors.
• It is one component of the diffusion process.

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Types of Innovations

• Continuous innovations
• Examples?
• Dynamically continuous innovations
• Examples?
• Discontinuous innovations
• Examples?

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Innovation Characteristics that Influence New
Product Adoption

• Pioneering advantage
• Being the first firm to market a product
  successfully in an emerging market.
• Prerequisites for Successful Adoption/AKA
  Barriers to Adoption
• Relative advantage
• Compatibility
• Trialability
• Observability
• Complexity

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The Study of Consumer Change

• The Diffusion Process
• the spread of an innovation from its creative
  source across space and time
• Product Life Cycle (PLC)
• a generic PLC takes the shape of an S-curve,
  because it mimics the adoption pattern.
• Key Components
• Space
• Time
• Neighborhood effect
• Fads, Fashions, and Trends

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Exhibit 17.2Diffusion Curves
Arnould et al. slide
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Conservatism, Resistance, and Discontinuance

• Pro-innovation bias
• Innovation resistance
• Discontinuance
• Why?
• E.g., Snob effect

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Exhibit 17.4 Group Influence on Innovative
Behaviors
Arnould et al. slide
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Social Hierarchies

• Social system values and traditions influence
  innovation.
• Trickle down theory of innovation
• Two-step flow model

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Exhibit 17.5 Multistep Media Flow Model of
Communication
Arnould et al. slide
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Adoption

• The adoption process focuses on the stages
  individual consumers or organizational buying
  units pass through in making a decision to accept
  or reject an innovation.
• Adopter Categories
• Lead Users
• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards

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Exhibit 17.6 Diffusion and the PLC
Arnould et al. slide
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The Adoption Process

• Awareness
• Interest
• Trial
• consumer surrogates
• Adoption (or rejection)
• Frequently, marketing objectives are stated in
  terms of where particular market segments are
  desired to be along the adoption process

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Topic Takeaways

• Innovation and change are the heart of marketing
• Innovations differ in type and character the
  characteristics affect the likelihood of success
• Diffusion processes study the rate of acceptance
  of a new product the Product Life Cycle concept
  is one example
• Consumers have characteristics that affect the
  likelihood of adoption
• Social system values and traditions influence
  innovation
• The adoption process focuses on the stages
  individual consumers or organizational buying
  units pass through in making a decision to accept
  or reject an innovation
• Frequently, marketing objectives are stated in
  terms of where particular market segments are
  desired to be along the adoption process