- Explain the nature of the consumer adoption process. How is it different from the concept of diffusion of innovations?
The consumer adoption process is a generally accepted conceptualization of the stages a consumer goes through when confronted with a new product or service. The consumer must become aware of the product, develop interest, perform a pre-purchase evaluation, and then try the product, either as a consequence of a purchase or of a marketer-sponsored promotion or incentive.
First consumers must decide to purchase/continue purchasing the product, which can be behaviorally identified as adoption/ Internalization is where the product has become an integral part of the consumers’ lifestyle.
The diffusion process is a communications model and consists of four elements: the innovation, communication channels, time and the social system within which the innovation is spreading. It begins with innovators, early adopters, early majority, late majority and laggards. The concept shows a process that is normally distributed around a population mean. Product characteristics that affect the ease of generating trial and adoption include relative advantage, compatibility, complexity, trialibility/divisibility and observability/communicability.
The degree to which an innovative product or service possesses these characteristics determines the ease with which it is adopted and diffused throughout the population. Older products such as the automobile and telephone were slower to diffuse through the population than newer ones like the Internet and cellular phones. In this fast-paced environment, marketers must develop and successfully commercialize new products. However the consumer adoption process explains consumer behavior and how consumers adapt to a product, while the diffusion of innovations describes the life of a product over time.
- Define “pervasive computing” in your own words. What changes is it likely to bring about in the way marketers approach the Internet?
The concept implies that a single person can have access to all their computing devices to assist in performing all sorts of daily tasks. It is a trend brought by the convergence of electronics via wireless technology and portable devises. The computer itself is invisible the used of embedded devices. It may accomplish an increasing number of personal and professional transactions using a new class of intelligent and portable devices. It gives people access to the information where needed.
RFID like PayPass. Wi-Fi, mobile services. These services will force marketers to prepare to meet customer needs for content wherever and whenever they need it. It means serving the needs of users one at a time, not communicating with segments of customers. It also means providing content and services when users desire them most, not when it is convenient for marketers. Access to Anyone who is Authorized Anything, Anywhere on Any Internet-enabled device. Being effective in this environment will require that databases be updated frequently if not actually in real time in order to meet customer needs for current content and transactions. The internet will expand marketers reach in medium like cell phones. However, barriers include cost, security, privacy and navigation difficulties. Wireless technology will require services to have relevant context (localization & personalization, time sensitive, high value, voice activation, one-click payment mechanism, security, privacy and expanded permission marketing in order to operate successfully. These are the strategic drivers.
- Be prepared to describe the strategic drivers of wireless adoption and to give an example of each.
Context- providing information when and where the customer needs and wants.
Localization- location of user can be identified and information specific to that location can be provided a consumer driving down the highway can be beamed info about attraction in the area.
Personalization- consumers can select not only the type of information desired but also the frequency of information like specific stocks and price levels, notified on cell phone.
Time sensitive- information that is provided at the time appropriate to the customer like coupons, can be saved or retained on the screen until the customer shows it at check out
High value- coupons having a reasonable value in order to make it welcome in the wireless context, coupons with high value
Voice activation- makes it safe
Once-click payment mechanisms- a system in which payment is easily and securely authorized and billed to a single account.
Security- user must be assured that data transmissions are secure and authentication services must be provided in a way that is suitable for the devices. Embedded devices that identify the owner are on possibility. Smart cards that can be inserted and removed to protect encoded information are anther.
Privacy- providers of content and services will have to be sensitive to download times, lack of storage and the fact that users are paying for airtime. They must not abuse on tech capabilities like geo locational services, protecting consumer data.
Expanded permission marketing- marketers will have to extend the concept of permission marketing beyond opt-in. They must find out what kind of information consumers are willing to receive, how often and where. This means an accurate customer database that is updated in real time.