24202 Chapter Notes - Chapter 12-14: Switching Barriers, Reference Group, Normative Social Influence
Consumer Behaviour Outcomes and Issues I
Innovation - Product, service, attribute or idea that is perceived as new by consumers within a
market segment, and that has an effect on existing consumption patterns. Innovation is about
perception, and is within a market segment."
Innovations are classified by:"
-Type of innovation"
-Type of benefits offered"
-Breadth of innovation"
Type of innovation:"
•Continuous innovation - limited effete on existing consumption ie most new products"
•Dynamically continuous innovation - more pronounced effect on consumption practices ie new
technology"
•Discontinuous innovation - never known before"
Benefits offered:"
•Functional innovations"
•Aesthetic or hedonic innovations"
•Symbolic innovations"
Breadth of innovation:"
•New and different uses"
•Co-creation - involving consumers "
Resistance to innovation:"
-Simpler to continue with familiar offerings"
-Involves higher risks to adopt"
-People with low need for change or low need for cognition"
-Brand attachment"
Adoption of innovation:"
•High effort hierarchy - awareness, information search, attitude formation, trial, adoption"
•Low-effort hierarchy - awareness, trial, attitude formation, adoption"
Implications of resistance vs adoption:"
•Low-effort - encourage trial"
•High-effort - reduce perceived risk"
When consumers adopt innovations:"
-Innovators 2.5%"
-Early adopters 13.5%"
-Early majority 34%"
-Late majority 34%"
-Laggards 16%"
Diffusion - how offerings diffuse through a market, being s-shaped of exponential."
Factors affecting shape of diffusion curve are risks and switching costs"
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Document Summary
Innovation - product, service, attribute or idea that is perceived as new by consumers within a market segment, and that has an e ect on existing consumption patterns. Innovation is about perception, and is within a market segment. Type of innovation: continuous innovation - limited e ete on existing consumption ie most new products, dynamically continuous innovation - more pronounced e ect on consumption practices ie new technology, discontinuous innovation - never known before. Bene ts o ered: functional innovations, aesthetic or hedonic innovations, symbolic innovations. Breadth of innovation: new and di erent uses, co-creation - involving consumers. People with low need for change or low need for cognition. Adoption of innovation: high e ort hierarchy - awareness, information search, attitude formation, trial, adoption, low-e ort hierarchy - awareness, trial, attitude formation, adoption. Implications of resistance vs adoption: low-e ort - encourage trial, high-e ort - reduce perceived risk.
