Five Stages of Adoption Awareness aware but uninformed

Five Stages of Adoption • Awareness – aware, but uninformed • Interest – stimulated to seek information • Evaluation – considers whether to try • Trial – consumer tries innovation • Adoption – makes full and regular use of innovation Diffusion of Innovation’s “Bermuda Triangle” Innovators 2. 5% - venturesome - risk takers Early Adopters 13. 5% - opinion leaders - guided by respect Early Majority 34% -deliberate -rarely leaders Late Majority 34% - skeptical - move only after majority has tried it Characteristics of Innovation Affect its Rate of Adoption • Advantage – degree of superiority over existing alternatives • Compatibility – degree to which it matches lifestyle, experiences, environment • Complexity – degree of difficulty to understand use it • Observability – results/benefits observable & describable to others • Riskiness – negative economic, social or physical consequences to adoption • Divisibility – can it be adopted gradually or tried on a limited basis Laggards 16% -tradition bound -suspicious of change -adopt only when it takes on characteristics of a tradition From Everett Rogers, The Diffusion of Innovation, Free Press 1983

Time to Market Depends on Many Factors PCS PC VCR Cellula r Sales Volume Color TV Cable TV Black & White TV DVD 1 Million Units 5 1 1 2 5 Years to 01 Million Units Sold 0 Source: D. Merriman, “Wireless Communications Report, ” BIS, Boston, 1995 + Dataquest