Where would you place yourself as a consumer along the adoption curve (1st part Transcript: Diffusion of Innovation – choose one of the 5 in this part), and why? Share an example of an adoption behavior to illustrate your self-characterization. For example, do you own a cell phone, a handheld PDA? If so, when did you buy your first one? Are there certain product categories in which you feel you’re more of an innovator than others–for example, electronics or fashion?
Given what you know about your tendencies, what is the best marketing strategy to meet you needs? What would a hotel do to appeal to a consumer like you?
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Transcript: Diffusion of Innovation
Diffusion of innovation is the process by which the adoption of an innovation spreads. The diffusion process is the spread of a new idea from its source of invention or creation to its ultimate users or adopters. The adoption curve illustrates how different groups accept ideas at different times.
The first purchasers of a new good or service. Comprising approximately 2.5% of the population, they are generally young and well educated and don’t mind taking a risk.
The second group to adopt a new product. Comprising approximately 13.5% of the population, they often are opinion leaders well respected by their peers.
Comprising about 34% of the population, these are the people who avoid risk and wait to see if the early adopters like a product before they try it.
An additional 34% of the population who are cautious about new ideas. They adopt a new product as a result of the pressure to conform. They tend to be older and/or below average in income and education.
The remaining 16% of the population who prefer to do things the way they have been done in the past, are very suspicious of new ideas, and are alienated from a rapidly advancing society. They may also simply lack the financial means to take advantage of innovations.
Transcript: The Six Steps of the Adoption Process
Consumers are consciously aware that a new hospitality product exists. Building strong awareness requires repeatedly exposing consumers to the new product or service through various forms of promotion.
Potential customers want to learn more. Interest can be either active or passive:
- Customers exhibiting active interest will seek information about the new product or service. This information may be derived from the company itself, from family and friends, from Internet-based sources, or a variety of other origins.
- Customers exhibiting passive interest won’t seek information themselves, but will accept it if it is offered.
Consumers compare the new product or service with existing offerings. If they perceive an advantage, they will wait for an opportunity to try the new offering. They may “cycle back” to the existing offering if sufficient information is not available, but they will remain interested.
This is the most important step in the adoption process. Consumers must overcome the perceived risk of making the wrong decision. The hospitality product may have to create the opportunity for consumers to experience the facility on a trial basis to overcome their tendency to forget. In today’s electronic world, that trial may come through Second Life-type platforms.
Consumers decide either to adopt the product or to reject it. They may require repeated trials before reaching their decision. If they adopt it, they become regular users of the product or service (i.e., the hotel or restaurant, in the case of the hospitality industry).
Consumers evaluate the wisdom of their decision. If they originally rejected the product, they may take advantage of renewed trial offers, which may result in eventual adoption.
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