Module III Personal Influence & Diffusion of Innovation

Personal Influence is best described as the effect or change in a persons attitude or behaviour as a result of communication with others. It is used synonymously with the term word of mouth Communication leading to influence may be source initiated (by the influence) or recipient initiated (by the influence) Communication may result in one way or two way influence Communication resulting in influence may be verbal or visual.

Promotional activity by marketer may not be the most important source of influence, research suggest that word of mouth publicity is the most influential source.

Synthetics or simulated word of Mouth it is done using celebrities in advertising campaign. These spokes person enter our homes via the media and speak to us as if it were a one-toone conversation.

Reasons why word of mouth is so strong Consumers view word of mouth as reliable and trustworthy information which help people to make better buying decisions. In contrast to mass media, personal contact can provide social support and give a stamp of approval to a purchase. The information provided is often backed up by social group pressure to force compliance with recommendations.

OPINION LEADER
Opinion leaders are those who are able in a given situation to exert personal influence. information. Opinion leaders can informally & subtly affect the behaviour of others toward product either +vely or vely. Thus they contribute to the success or failure of the pdt. 1. Characteristics i) Have approximately the same social class or higher. They are the ones to whom others look for advice and

ii) Have greater exposure to mass media. iii) Have greater interest & knowledge of the area of influence.

iv) They are more sociable & comparisonable v) He is more innovativeness i.e. they are editor of fashion, who defines & endorses appropriate standards. vi) They are more familiar & loyal to group leaders.

Why opinion leaders attempt to influence others people 1) They derive some kind of satisfaction by speaking about the product. 2) Product Involvement Use of pdt/ service may create a tension that can be reduced by way of talk, recommendation & enthusiasm to provide relief.

3) Self Involvement
- Gratifies certain emotional needs - Gaining attention - Having inside information - Suggesting Status - Spreading the gospel speaks may convert listener to using the pdt. - Seeking confirmation - Asserting superiority

Adoption & Diffusion of Innovation

What is an Innovation? Any idea, practice or material artifact perceived to be new by the relevant adopting unit. Categories of innovation (i) Continuous Innovation have the least disrupting influence on established consumption pattern eg. Fluoride toothpaste, menthol cigarettes. (ii) Dynamically continuous innovation have more disrupting effect, but they do not alter established pattern eg. electric toothpaste, wall sized TV screen. (iii) Discontinuous Innovation involve the establishment of new pdt with new behaviour pattern eg. TV, Computers, automobiles.

THE ADOPTION PROCESS The acceptance and continued use of a product or brand by an individual is referred to as adoption. The model consist of following steps Awareness At this stage the potential adopter finds out about the

existence of a product but has very little information. Comprehension This stage represents the consumers having

knowledge & understanding of the product Attitude The consumer develops favourable or unfavourable

disposition towards the product. Termination of process is possible in case of ve attitude. Legitimation The consumer becomes / convinced that the pdt

should be adopted. Trial Trial may take place.

iv)

Adoption The consumer determines whether or not to use the pdt in a full scale way. Continued purchase / use of the pdt. fulfill the adoption process

Adoption Trial

Legitimating Attitude

Compensation Awareness

Adoption Decision Process

For early stages of adoption process mass media is most effective in creating awareness. At later stage personal sources of information are most important. Not all consumers pass through the adoption process with same speed. The marketers communication forms vary in their effectiveness over the different stages in the adoption process. Innovation may not be adopted by all individuals. The Diffusion Process The best marketing oriented definition of the diffusion process is the

adoption of new products & services over time by consumers within social systems as encouraged by marketing activities

Categories of Adopters(i) Innovators (2.5% of a market) are the first to adopt new product. They are venturesome & are eager to try new ideas. They are well educated, well established families, cosmopolitan & have friends outside

community. (ii) Early Adaptors- (13.5% of a market) are the second group to adopt an innovation. They are more socially integrated locally than innovator and it has the greatest degree of opinion leadership. They hold the position of good source of information & advice about the innovation. Thus they are very important in speeding diffusion process.

Early Majority - (34% of a market) is the next group of adopt an innovation & is the most deliberate of all adopter category. They adopt an innovation just before the average number of a social system, which puts them in a crucial position to legitimize the new ideas for others. They are not leaders but active members of group. They rely more heavily on informal sources. They are frequently the friend & neighbour of early adopters. Late Majority (34% of a market) - adopts an innovation just after the average consumer in the market place. They are skeptical about new ideas. They buy product because of economic necessity or increasing social pressure. They heavily rely on informal sources & influence. They are average in education, social status & income.

Laggards (16% of the market) are the last group to adopt an innovation. They are decision bound. They are suspicious of innovation & of those who offer them. Their adoption process is very long & they adopt pdt when new innovation was likely superseded the earlier innovation. They are least

education, have lowest social status & income & are oldest of any adopter category. How does diffusion occur ? Several theories have been proposed few of them areTheory I Theory of upper class fashion leadership postulates that

fashions are initially adopted by the upper class & are the initiated by each succeeding lower class until they have trickled down to the lowest class.

Theory II

It proposes that mass production combined with mass

communication make new styles & information about new styles available simultaneously to all socio economic classes. This mass market view is also known as trickle across theory. Theory III its a newer theory of fashion diffusion recognizes that

many new fashions have been initiated by sub-cultural groups as youths, blue collar worker & ethnic minorities. Whether a fashion is new or customary the unique subculture style becomes advanced & diffused into mass population. Theory IV This theory of leadership suggests that nearly all creative

or innovative individuals can become leaders of fashion trends if their innovative choices are reasonably in line with the social climate & lifestyles of the time. Thus fashion leadership is not confined to upper class but can emerge by a process in which collective taste are formed by many people.

Factors influencing the rate of diffusion The rate of an innovations diffusion ranges from several week to several decades, depending upon consumers perception of the product. The product characteristics that seem to influence the rate & extent of adoption of an innovation are: (i) Relative Advantage is the degree to which an innovation is perceived as superior to preceding product or those with which it will compete. Measures like long life, easier maintenance etc are measured. Products with strong relative advantage are adopted rapidly. (ii) Compatibility is the degree to which an innovation is consistent with existing consumer values and past experience of adopters. Product Not compatible with consumers norms are retarded. (iii) Complexity refers to how difficult the innovation is to understand & use. Diffusion is slow for complex products.

(iv) Triability (or divisiability) is the extent to which an innovation may be tried on a limited basis. Where an item cannot be sampled on a small use expensive scale, diffusion is retarded. (v) Observability (or communicability) Products that are highly visible in social situations are those that will be communicated most readily to other adopters. (vi) Cost refers to the magnitude of the financial resources required to obtain & operate this innovation. Higher cost product diffuse slow.