#5What factors affect the rate of diffusion and consumer adoption of newly launched products and services?

Readiness to Try New Products &Personal Influence

Companies often target early adopters with product rollouts. The effect one person has on another’s attitude too has great significance.

Characteristics of the InnovationSome products catch on immediately (roller blades), whereas others take a long time to gain acceptance (diesel engine autos).Characteristics influencing the rate of adoption include:• Cost• Risk & Uncertainty

• Scientific credibility• Social Approval

Characteristics of the Innovation:

Relative AdvantageThe degree to which the innovation appears superior to existing products.

Characteristics of the Innovation:

CompatibilityThe degree to which the innovation matches the values and experiences of individuals.

Characteristics of the Innovation:

ComplexityThe degree to which the innovation is relatively difficult to understand or use.

Characteristics of the Innovation:

DivisibilityThe degree to which the innovation can be tried on a limited basis.

Characteristics of the Innovation:

CommunicabilityThe degree to which the beneficial results of use are observable or describable to others.

Organization’s Readiness to Adopt Innovation

Adoption is associated with variables in the organization’s environment (community progressiveness, community income), the organization itself (size, profits, pressure to change) and the administrators (educational level, age, sophistication).