Unit 4: Consumer decision-making & innovation
Consumer Behaviour notes · PTU syllabus (BBA 511-18)
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Unit summary
New products spread through society gradually, often led by opinion leaders. This unit covers opinion leadership, the diffusion of innovations, the adoption process and the profile of consumer innovators.
After this unit you can
- Explain opinion leadership and its process
- Explain the diffusion of innovations and its elements
- Describe the stages of the adoption process
- Describe the profile of consumer innovators and adopter categories
PTU syllabus topics
- Introduction to opinion leadership
- diffusion of innovations
- the diffusion process
- adoption process influence
- profile of consumer innovators
- Innovators
2.5%: venturesome
- Early adopters
13.5%: opinion leaders
- Early majority
34%: deliberate
- Late majority
34%: sceptical
- Laggards
16%: traditional
Topic 1
Opinion leadership
Opinion leadership is the process by which one person (the opinion leader) informally influences the attitudes or actions of others (opinion seekers or receivers). Opinion leaders are credible, knowledgeable, socially active and often heavy users in their product category. Marketers target them with samples, previews and influencer programmes.
Role
Gives advice and information
Asks for advice
Knowledge
High in the category
Lower
Media use
Heavy, specialised
General
Topic 2
Diffusion of innovations
Diffusion is the process by which an innovation spreads through a social system over time (Everett Rogers). Elements: the innovation, channels of communication, the social system and time. Product characteristics affecting diffusion: relative advantage, compatibility, complexity, trialability and observability.
Topic 3
The adoption process
- 1Awareness
Learns of the innovation
- 2Interest
Seeks information
- 3Evaluation
Considers whether to try it
- 4Trial
Tries it on a small scale
- 5Adoption (or rejection)
Decides to use it regularly
Topic 4
Profile of consumer innovators
- Innovators
2.5% — venturesome, risk-takers
- Early adopters
13.5% — respected opinion leaders
- Early majority
34% — deliberate
- Late majority
34% — sceptical
- Laggards
16% — traditional
Consumer innovators tend to be younger, better educated, higher income, more interested in the product category, more venturesome and heavier media users.
Key terms
- Opinion leader
- A person who informally influences others' choices
- Diffusion
- Spread of an innovation through a social system
- Adoption process
- Stages an individual goes through to accept a product
- Trialability
- How easily an innovation can be tried
- Laggards
- The last group to adopt an innovation
Quick revision
- Opinion leaders are credible and knowledgeable; target them.
- Diffusion elements: innovation, channels, social system, time.
- Adoption: awareness, interest, evaluation, trial, adoption.
- Adopters: innovators 2.5%, early adopters 13.5%, majorities 34% each, laggards 16%.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Define opinion leadership.
- Q2.What is diffusion of innovation?
- Q3.List the stages of the adoption process.
- Q4.State five characteristics affecting diffusion.
- Q5.Name Rogers' adopter categories.
Long-answer questions
- Q1.Explain opinion leadership and how marketers use it.
- Q2.Explain the diffusion of innovations and the factors affecting it.
- Q3.Explain the adoption process and the profile of consumer innovators.
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