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Understanding Product Adoption Factors

The document discusses factors that drive adoption of new products, including relative advantage over existing options, compatibility with consumer values and lifestyle, ease of use, ability to try products on a limited basis, and how benefits can be explained. It also outlines the stages consumers go through in their decision process - from awareness to interest, evaluation, trial, and adoption. Finally, it describes the five stages of a product's life cycle from development through maturity and decline, noting high failure rates and costs in the development stage with no sales yet.

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2 views1 page

Understanding Product Adoption Factors

The document discusses factors that drive adoption of new products, including relative advantage over existing options, compatibility with consumer values and lifestyle, ease of use, ability to try products on a limited basis, and how benefits can be explained. It also outlines the stages consumers go through in their decision process - from awareness to interest, evaluation, trial, and adoption. Finally, it describes the five stages of a product's life cycle from development through maturity and decline, noting high failure rates and costs in the development stage with no sales yet.

Uploaded by

Baraa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Driver of Adoption:

 Relative advantage: how much better is it than the existing product?


(if something new came up, is it really better than the existing one?)
 Compatibility: how compatible is it with the consumer’s
values/lifestyle?
 Easiness: how easy is it to learn how to use it? (ex: microwave ovens;
very easy to use)
 Triability: can this new product be tried on a limited basis? (Ex: Free
samples of post-it notes)
 Communicability: can the benefits of it be easily
explained/demonstrated?

The buyer decision process for new products:

 Adoption Process: the mental process an individual goes through from first
learning about an innovation to final regular use.
Stages in this process include:
Awareness Interest EvaluationTrial Adoption

The Product Life Cycle(PLC): the typical product life cycle sees the product move
through fives stages; product development, introduction, growth, maturity and
decline.

1) Development: (No sales because your product is still not in the market)
 High failure rates
 High development costs
 Growing emphasis on speed to market (if your product takes 7 years to
develop, then its not a good idea because technology is changing fast so by
that time your product won’t be “new”)
 Profit is negative because you’re spending money on advertising ( Ex:
Coming soon)

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