Consumer Behavior Ch. 14

discontinuous innovation

A dramatically new product entry that requires the establishment of new consumption practices

diffusion process

A macro process concerned with the spread of a new product from its source to the consuming public

adoption process

A micro process that focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product

continuous innovation

A new product entry that is an improved or modified version of an exiting product rather than a totally new product. A continuous innovation has the least disruptive influence on established consumption patterns

dynamically continuous innovation

A new product entry that is sufficiently innovative to have some disruptive effects on established consumption practices

adopter categories

A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters. The five typical adopter categories are innovators, early adopters, early majority, late majority, and laggards.

Stages in the Adoption Process

Awareness: Consumer is first exposed to the product innovation Interest: consumer is interested in the product and searches for additional info Evaluation: consumer decides whether or not to believe that this product or service will satisfy the need - a kind of "mental trial" Trial: consumer uses the product on a limited basis Adoption: if trial is favorable, consumer decides to use the product on a full rather than a limited basis - if unfavorable, the consumer decides to reject it.

product or service innovation

The creation and introduction of a new product or service into the market, which can be viewed from different classifications. The Firm-Oriented Approach views the new product from the perspective of the company producing it. The Product-Oriented Approach view the product in terms of the product's traits. The Market-Oriented Approach looks at the new product in terms of its exposure to new consumers. The Consumer-oriented Approach considers a product new if it is new to them

complexity

The degree to which a new product is difficult to understand or use, affects product acceptance

trialability

The degree to which a new product tried on a limited basis

compatibility

The degree to which potential consumers feel a new product is consistent with their present needs, vallues, and practices

relative advantage

The degree to which potential customers perceive a new product as superior to existing substitutes

observability

The ease with which a product's benefits or attributes can be observed, imagined, or described to potential consumers

diffusion of innovations

The framework for exploring consumer acceptance of new products is drawn from this area of research

consumer innovators

Those who are the first to purchase a new product

skimming policy

pricing policy in which marketers initially sell a product at a high price to consumers who are willing to pay top dollar for it, and then gradually lower the price to draw in additional buyers

penetration policy

setting a relatively low introductory price designed to discourage competition from entering the market