Adoption Process: Consumer to Customer

Description
These products include not only movies but also take into account the F&B, merchandise and other products that are supplementary to the cinema business. The major players in the Indian Cinema Property Industry are: BIG Cinemas: 516 screens, PVR Cinemas: 136 screens, INOX Cinemas: 132 screens, Cinemax: 74 screens, FAME Cinemas: 70 screens, FUN Cinemas: 45 screens

Adoption Process
Diffusion of Innovation
How a consumer becomes a customer

Diffusion
• Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system. • An innovation?
– is “an idea perceived as new by the individual.”

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The four main elements in the diffusion of new ideas are
(1) The innovation (2) Communication channels (3) Time (4) The social system (context)

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1. The innovation
• Why do certain innovations spread more quickly than others?
– The innovation, to spread and be adopted should show: The characteristics which determine an innovation's rate of adoption are: • Relative advantage • Compatibility • Complexity • Trialability • Observability to those people within the social system.

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2. Communication
• Process by which participants create and share • Mass media channels - effective in creating knowledge of innovations • Interpersonal channels - effective in forming and changing attitudes toward a new idea
– Influences the decision to adopt or reject a new idea.

• Most individuals evaluate an innovation, not on the basis of scientific research by experts,
– but through the subjective evaluations of near-peers who have adopted the innovation.

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New Product Adoption Theory
• ADOPTION PROCESS - The consumer decision stages that lead acceptance/rejection - A micro process that focuses on internal forces of the consumer * Intra Personal (Psych) Influences * Inter Personal (Social) Influences * Product Selection Criteria

to innovation

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New Product Diffusion Theory
• DIFFUSION PROCESS.
– The spread of an innovation from its source to the ultimate consumer. – A macro process that focuses on external forces on the consumer (change agents, channels of information, types of information). – Occurs in a social system (a target audience, community, etc.)

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Speed of Diffusion
is influenced by… • • • • • Competitive Intensity Good Supplier Reputation Standardization of Technology Vertical Channel Coordination Resource Commitments

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Introduction
• The Adoption Process (also known as the Diffusion of Innovation) is more than forty years old. • It was first described by Bourne (1959), so it has stood the test of time and remained an important marketing tool ever since. • It describes the behavior of consumers as they purchase new products and services.

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Adaptation of new inventions

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Adoption process
1. 2. 3. 4. 5. 6. Awareness Interest Evaluation Trial Decision Confirmation

OK, we will

buy X.
If I have to buy it I will.

No way!

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Categories

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Innovators
• First to adopt & display that they likely to want to be ahead • To be the first to own new products, well before the average consumer. • They are often not taken seriously by their peers. • They often buy products that do not make it through the early stages of the Product Life Cycle (PLC).

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Early adopters
• Are also quick to buy new products and services, • So are key opinion leaders (KOLs) with their neighbors and friends as they tend to be amongst the first to get hold of items or services.

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Early Majority
• Look to the innovators and early majority to see if a new product or idea works and begins to stand the test of time. • They stand back and watch the experiences of others. • Then there is a surge of mass purchases.

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Late Majority
• Tends to purchase the product later than the average person. • They are slower to catch on to the popularity of new products, services, ideas, or solutions. • There is still mass consumption, but it begins to end.

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Laggards
• These tend to very late to take on board new products and include those that never actually adopt at all. • Here there is little to be made from these consumers.

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