| [Edit]
Diffusion is the process by which a new idea or new product is accepted by the market. The rate of diffusion is the speed that the new idea spreads from one consumer to the next. Adoption is similar to diffusion except that it deals with the psychological processes an individual goes through, rather than an aggregate market process.
top
Models
There are several theories that proport to explain the mechanics of diffusion:
the trickle-down effect - products tend to be expensive at first, and therefore only accessible to the wealthy social strata - in time they become less expense and are diffussed to lower and lower strata
innovators – venturesome, educated, multiple info sources
early adopters – social leaders, popular, educated
early majority – deliberate, many informal social contacts
late majority – skeptical, traditional, lower socio-economic status
laggards – neighbours and friends are main info sources, fear of debt
Crossing the Chasm model developed by G. Moore - This is basically a modification of Everett Rogers' theory applied to technology markets and with a chasm added. According to Moore, the marketer should focus on one group of customers at a time, using each group as a base for marketing to the next group. The most difficult step is making the transition between visionaries (early adopters) and pragmatists (early majority). This is the chasm that he refers to. If a successful firm can create a bandwagon effect in which the momentum builds and the product becomes a de facto standard.
Technology driven models - These are particularly relevant to software diffusion. The rate of acceptance of technology is determined by factors such as ease of use and usefulness.
top
Rate
According to Everett M. Rogers, the rate of diffusion is influenced by:
the product's perceived advantage or benefit
ease of product use - complexity of the product
extent of behavioural changes required
return on investment in the case of industrial products
top
Models
There are several types of diffusion rate models:
Penetration models - use test market data to develop acceptance equations of expected sales volume as a function of time. Three examples of penetration models are:
Bass declining trial model
Trial/Repeat models - number of repeat buyers is a function of the number of trial buyers
Deterministic models - assess number of buyers at various states of acceptance - later states are determined from calculations to previous states
Stochastic models - recognize that many elements of the diffusion process are unknown but explicitly incorporate probabilistic terms
top
See also
|
|
