Deck 15: Innovations: Adoption, Resistance, Diffusion

Question 1

Do you think single-serve coffeemakers are discontinuous, dynamically continuous, or continuous? What are the implications for adoption and resistance of this innovation?

Answer 1

Single-serve coffeemakers when introduced became instant hit despite being expensive.
- This would be considered as dynamic continuous innovation as it changed the way consumers brew their coffee.
- Dynamic continuous innovation refers to the innovation of new technology that would change the consumer behavior to certain extent. This has some lasting effect on consumer behavior till another new technology is introduced.

Question 2

How can innovations be described in terms of degree of novelty and types of benefits? How does the degree of novelty affect consumers' behavioral change?

Answer 2

Innovations are improvements or changes in existing products that result in a change in the consumer behavior. Innovations are characterized by:
- Degree of novelty
- Benefits offered
Degree of novelty:
The innovation characterized by novelty is of three types:
- Continuous innovation where the effect of change in consumer behavior is of short term. This can be related to innovation of similar new mobile technologies.
- Dynamically continuous innovation has a lasting effect on the consumption pattern. For example, touchscreen phones when introduced became instant hit and now are also continuing its presence in the market.
- Discontinuous innovations are the products that have not been experienced before. For example introduction of airplane for the first time or even refrigerators and computers.
Benefits offered:
The innovation characterized by benefits is of three types:
- Functional innovations are related to their usefulness to the consumer. For example, pens that acts both as pen drive and camera are of great utility to the consumer.
- Hedonic or aesthetic innovations are more related to the interest and activities of consumer. They are pleasure seeking consumption. Spas are wide spread hedonic innovations.
- Symbolic innovation relates to new social meaning with a set of groups in the society. Institutions that are built to create awareness about education and women empowerment are symbolic innovations.

Question 3

Is the decision to adopt single-serve coffeemakers likely to follow the high-effort or low-effort hierarchy of effects? Explain your answers.

Answer 3

Single-serve coffeemaker has low effort hierarchy effects.
- When a consumer adopts a product with less research and trial, it is termed as low effort hierarchy effect.
- This can be inferred from the reports that suggest the quick spread of single serve coffeemaker in Europe and the U.S. market.

Question 4

What is cocreation and what are its potential benefits?

Question 5

In which stage of the product life cycle would you place single-serve coffeemakers? Why should competitors in this industry pay attention to the life cycle?

Question 6

What is the difference between adoption and diffusion? How does the concept of resistance relate to adoption?

Question 7

How is diffusion likely to be affected by the expiration of patents and the introduction of lower-priced coffee capsules?

Question 8

Under what circumstances might a consumer follow the high-effort hierarchy of effects in adopting an innovation?

Question 9

How can consumers be categorized in terms of their timing of adoption relative to that of other consumers?

Question 10

What is the product life cycle, and how does it differ from product diffusion?

Question 11

How do consumer learning requirements and social relevance affect resistance, adoption, and diffusion?

Question 12

What characteristics of the social system affect an innovation's acceptance within a market?