Consumer adoption of innovations
The customer adoption process: stages a consumer goes through when confronted with a new product or service. According to the adoption process, the consumer must first become aware of the product; then develop an interest in it; perform some pre-purchase evaluation; and then try the product, either as a consequence of a purchase or of a marketer-sponsored promotion or incentive. Two importance stages follow trial. First, the consumer must decide to purchase/continue purchasing the product, which can be behaviorally identified as adoption. A harder to discern stage is that of internalization, in which the product has become an integral part of the consumer’s lifestyle. The internalization stage is particularly important in the case of technology.
Diffusion process: it is a communications model and as such it consists of four elements: the innovation, communication channels, time, and social system within which the innovation is spreading. (normally distributed around a population mean… bell curve)
Consumer adoption: awarenessà interestà evaluationà trialà adoptionà internalization
Diffusion: innovatorsà early adaptorsà early majorityà late majorityà laggards
1) Relative advantage: product benefits perceived as superior than existing products
2) Compatibility: consistency b/w new product and consumer’s perception
3) Complexity: difficult to learn to use
4) Trialability/divisibility: new product can be tried
5) Observability/ communicability: new product’s benefits are evident
Pervasive computing: implies that a single person has access to myriad computing devices to assist in performing all sorts of daily tasks. Pervasive computing aims to enable people to increase personal and professional transactions with new intelligent and portable devices. It gives people convenient access to relevant information stored on powerful networks anywhere, anytime. “Smart devices” are embedded with micro-processors that allow users to plug into intelligent networks and gain direct, simple and secure access to both relevant information and services. (speedpass, online checkin-British Airway, LA cell phone – parking meter)
6A’s: access anywhere, anytime, any authorized user on any internet enable device
Strategic drivers of wireless technology …mobil/m-commerce
-context: providing necessary information when and where the customer needs or wants it
àlocalization: the location of the user can be identified and information specific to that location can be provided
àpersonalization: the customer can select not only the type of information desired but also the frequency of information provision
-time sensitive: information must be provided at the time appropriate to the customer.
-high value: coupon has reasonable value
-voice activation: good for driving
-one-click payment mechanisms: a system is which payment is easily and securely authorized and billed to a single account will be necessary to enable frequent use of m-commerce services (credit card info)
-security: users must be assured that data transmissions are secure, and authentication services must be provided in a way that is suitable for the devices
-privacy: protect personal data
-expanded permission marketing: what kind of information is consumers willing to receive, how often they are willing to receive transmissions, and where they are willing to receive it. Accurate customer database required.