New Product Adoption Process Model
How does a company introduce a new product in the market? How will consumers adopt the product? These are important questions for marketers whenever introducing a new product. Essentially, they need to identify classes, in which their adopters fall. This adoption process is also called the Diffusion of Innovation. It is not a new concept in business as it has been in existence for more than forty years. In essence, it gives a description of how consumers behave when they buy new products in the market. In this paper, we discuss the five categories in which consumers fall when adopting a new product.
Innovators: This usually denotes a small portion of the market, which fully supports the adoption of the new products. These people do not care about the price and are always enthusiastic about trying new products. However, research shows that innovators do not make loyal consumers because they keep on shifting their loyalty and trying new products elsewhere in the market. They always have the urge to be the first to own the products before average consumers can acquire it. Most peers do not take innovators seriously in their decisions.
The second category are early adopters: The membership of this group is higher than that of innovators. They are more practical about what they want even though they share the same enthusiasm as adopters. It is important to note that early adopters act as opinion leaders and may influence other consumers in the market. They are the first to hold on to the new products and influence people around them like family members and friends.
Early Majority: This marks massive entry and acceptance in the market. They account to about 30% of the entire market. Though these consumers have a taste for new products, they are not in a hurry to make a purchase until the early adopters influence them with positive testimonies about the new entrants in the market. Early majority mean a lot to the company because they result into profit since they are in large numbers. However, many new products die because they fail to reach this stage of massive acceptance from consumers.
Late Majority: Their numbers are almost equal to early majorities. They also watch from a distance to see the benefits of the new products in the market before they cause humongous surge in consumption. Manufacturers are likely to realize pinnacle profits whenever a product gets to this level of adoption. Though they consume in bulk, they are slow to accept new products.
The last step of adoption consists of laggards. These consumers resort to the new product only when they do not have any choice. It is worth noting that this group is sometimes large enough even though marketers hardly give it attention because of its reluctance to adopt the new product. This category also comprises of consumers who never adopt the new product at all because of personal reasons. Their impact is not that significant. It is important to note that the success of the adoption process largely depends on the impact of marketers, as consumers seek information about new products.
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