October 19,2016

• the diffusion of innovation model - explains how new ideas and technology spread through society over time 
• assumes inovations spread through 5 distinct categories of adopters 
• innovators 
• early adopters 
• early majority 
• late majority 
• laggards 
• this helps marketers predict which types of consumers will buy their products/services 
• innovators - 2.5% of consumers - they seek out new products; buyers who want to be the first to have the new product or service 
• early adopters - less venturesome; will wait to purchase after careful review 
• early majority - risk averse; tend to wait until the bugs have been worked out before purchasing 
• late majority - purchase the product after it has achieved its full market potential (saturation) 
• Laggards - avoid change: rely on traditional products until no longer available; may never adopt a certain product or service 
• innovators " i want to be the first to get this new product" 
• early adopters " this new product is great" 
• earl majority " i heard that the jones' have one" 
• late majority " i found it at TJ Maxx yay" 
• laggards "what new product"... Do I have to?"
• factors affecting the rate of diffusion 
• different products diffuse at different rates 
• various factors increase the speed of diffusion of a new product 
• factoring affecting product diffusion - relative advantage - compatibility - observability - complexity - trialability-
• the product life cycle - defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace