Diffusion

of

Innovations

Types of Innovations

Continuous

Dynamic Continuous

Discontinuous

Factors Affecting Rate of Diffusion

Relative Advantage

Complexity

Compatibility

Trial ability

Observability

Risk Perceived

knowledge

persuasion

decision

implementation

adoption

rejection

Cont adoption

Later adoption

Discontinuance

Cont rejection

confirmation

2.5%13.5%

34% 34%

16%

TIME

PO

PU

LA

TIO

NRate of Diffusion

Innovators

Early Adopters

Early Majority Late Majority

Laggards

Luxuries/Technology

Fashion

Fad Or Craze

low

high

IMP

OR

TA

NC

E

awar

enes

s

inte

rest

eval

uat

ion

tria

l

adop

tion

Relative importance of info sources in the adoption process

Personal

channels

Mass media

CHARACTERISTICS OF OPINION LEADERS•Product specific

•More experienced

•Credible & Knowledgeable

•More then average media usage

•Higher incomes within their group so more adventurous &risk takers

•More social and interactive

SOURCE or SENDER

OPINION LEADERS

USER or RECEIVER

Two Step Flow of Information

feedback

messageReceiver

[audience]

filter

filter

DestinationSource

[advertiser]

Channel[Media]

Channel[Word of Mouth]

Perceptionprocess

Filters in the Communication Process

•Noise

•Selective Attention

•Selective Perception

•Selective Retention

•Selective Recall