3 marketing effort the rate of diffusion is heavily

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3. Marketing effort. The rate of diffusion is heavily influenced by the extent of marketing effort involved. Thus, the rate of diffusion is not completely beyond the control of the firm. 68 4. Fulfillment of felt need. The more manifest or obvious the need that the innovation satisfies, the faster the diffusion. Rogaine, a cure for some types of hair loss, gained rapid trial among those uncomfortable with thin hair or baldness. 5. Compatibility. The more the purchase and use of the innovation are consistent with the individual’s and group’s values or beliefs, the more rapid the diffusion. 6. Relative advantage. The better the innovation is perceived to meet the relevant need compared with existing methods, the more rapid the diffusion. Both the performance and the cost of the product are included in relative advantage. The digital audio tape (DAT) had neither advantage compared with CDs and DVDs and thus never took off. 7. Complexity. The more difficult the innovation is to understand and use, the slower the diffusion. The key to this dimension is ease of use, not complexity of product. Specialized blogging software is making an otherwise complex task easy and fun. 70 8. Observability. The more easily consumers can observe the positive effects of adopting an innovation, the more rapid its diffusion will be. Cell phones are relatively visible. Laser eye surgery, while less visible, may be a frequent topic of conversation. On the other hand, new headache remedies are less obvious and generally less likely to be discussed. 9. Trialability. The easier it is to have a low-cost or low-low-cost or low-risk trial of the innovation, the more rapid is its diffusion. The diffusion of products like laser eye surgery has been hampered by the difficulty of trying out the product in a realistic manner. This is much less of a problem with low-cost items such as headache remedies, or such items as camera phones, which can be borrowed or tried at a retail outlet. 10. Perceived risk. The more risk associated with trying an innovation, the slower the diffusion. Risk can be financial, physical, or social. Perceived risk is a function of three dimensions: (1) the probability that the innovation will not perform as desired; (2) the consequences of its not performing as desired; and (3) the ability (and cost) to reverse any negative consequences. 71 Thus, many consumers may feel a need for the benefits offered by laser eye surgery and view the probability of its working successfully as being quite high. However, they perceive the consequences of failure as being extreme and irreversible and therefore do not adopt this innovation. Early adopters tend to be opinion leaders in local reference groups. Early majority consumers tend to be cautious about innovations. Late majority members are skeptical about innovations. Laggards are locally oriented and engage in limited social interaction
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  • Spring '17
  • Diffusion of innovations, reference group, Rogaine

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