The Adoption Process


The adoption process consists of the mental stages an individual goes through in accepting and becoming a repeat purchaser of an innovation. Marketing communicators play a role in accelerating the rate of new product adoption and thereby increasing the probability of product success. As firms have become more sophisticated marketers, the rate of adoption in consumer markets has increased.

Although consumers are accepting new products more readily than ever, there is still a high percentage of failure in the introduction of new products. Understanding the factors that facilitate or impede successful adoption is crucial to a full appreciation of the role of marketing communications and promotion management in modern marketing.

The adoption process consists of five stages: 1) knowledge, 2) persuasion, 3) decision, 4) implementation, and 5) confirmation. Each stage is necessary precondition to a subsequent stage. Various conditions and characteristics act to increase or retard the innovation-decision process. Among the broad groups of variables that influence the various stages are prior conditions (e.g., the consumer’s previous consumption practices), characteristics of the decision-making unit (e.g., socio-economic characteristics), and perceived characteristics of the innovation (e.g., relative advantages).

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Creativogenic Management Style


Management style can both impede innovations and facilitate them. The old firms—once dynamic and vibrant—today fail in terms of deficient management style and resulting ineffective culture and structure. Such firms are managed on machinistic lines, with strong belief in centralization and extreme specialization of functions. This means that coordination of interdepartmental activities is done mainly by the head of the concern. Strong departmental loyalties bred by lifelong career paths only within the functional department make interdepartmental collaboration very easy. Information flows mainly vertically rather than also diagnolly and horizontally. A strong hieracrch-bound operating culture saps initiative at lower levels. An organic mode of management is much more suitable in technological change-driven turbulent markets like electronics. In this mode, solving technical problems is the priority, not maintaining functional turfs, and so decisions emerge through interactions rather than being made by the formally designated bosses. Also, the expert in the situation—who could be quite a junior fellow—calls the shots rather than the formal boss. People interact disregarding departmental boundaries, picking brains and sharing information, and most decisions are taken—or rather, emerge—at middle and lower levels of management. Thus, a fluid, boundaryless, highly interactive, expertise-based management is more suitable for managing technological innovations than a mechanistic, bureaucratic, semi-feudal form.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Fear of Loss of Revenues


If a firm’s innovation renders its existing products or services noncompetitive, the firm loses the revenues from the old product. Since a firm’s stock value usually depends on expected earnings, such a loss in revenues and accompanying profits may result in a drop in a firm’s value. The fear of such a loss may result in the firm being reluctant to adopt the invading innovation. Such a loss in  revenues can also have organizational consequences. If the source of power for the most powerful in the firm is the revenues from the old product, the political coalition may impede implementation.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir.