Exhibit 121 page 244 textbook discusses some infamous

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Exhibit 12.1 page 244 textbook discusses some infamous product failures…
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Diffusion of Innovation As the diffusion of innovation curve in Exhibit 12.2 shows, the number of users of an innovative product or service spreads through the population over a period of time and generally follows a bell-shaped curve. These purchasers can be divided into five groups according to how soon they buy the product after it has been introduced…
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Categories of Adopters Laggards Late Majority Early Majority Early Adopters Innovators
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Diffusion of Innovation Time of adoption of the innovation 2.5% Innovators 13.5% Early Adopters 34% Early Majority 34% Late Majority 16% Laggards Source: Adapted from Everett M. Rodgers, Diffusion of Innovation (New York: Free Press, 1983).
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Diffusion of Innovation Innovators Those buyers who want to be the first on the block to have the new product or service. These buyers enjoy taking risks and are regarded as highly knowledgeable. Those consumers who already have 3D printers in their homes are likely innovators. Typically, innovators keep themselves very well informed about the product category by subscribing to trade and specialty magazines, talking to other experts, visiting product- specific blogs and forums that describe the coolest products, and attending product- related forums, seminars, and special events. Represent only 2.5 percent of the total market; crucial to the success of any new product though, because they help the product gain market acceptance.
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Diffusion of Innovation Early Adopters Generally don’t like to take as much risk as innovators, but instead wait and purchase the product after careful review. Only after reading the innovators’ comments do they decide whether the new technology is worth the cost. Tend to enjoy novelty and often are regarded as the opinion leaders for particular product categories. Represent 13.5 percent of all buyers. Spread the work; crucial for bringing the other three buyer categories to the market.
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Diffusion of Innovation Early Majority Represent 34 percent of the population; crucial because few new products can be profitable until this large group buys them. Differs in many ways from buyers in the first two stages. Its members don’t like to take as much risk and therefore tend to wait until the bugs are worked out of a particular product or service. The number of competitors in the marketplace usually has reached its peak, so these buyers have many price and quality choices.
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Diffusion of Innovation Late Majority 34 percent of the market. The product has achieved its full market potential. Sales tend to level off or may be in decline. Laggards 16 percent of the market. Like to avoid change and rely on traditional products until they are no longer available.
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Identify the Adopter The first year they were offered, John wanted a tablet computer, but he did not know which one to choose. He waited until there were more choices, lower prices, and improved quality. John is part of the ___________ diffusion of innovation group.
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  • Spring '13
  • Payne
  • Marketing, new products

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