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 does through when confronted with a new product of service. The consumer must first become aware of the product, then develop interest in it, perform some prepurchase evaluation, and then try the product, either as a consequence of a purchase or of a marketer-sponsored promotion or incentive. After the trial, the consumer must first decide to purchase/continue purchasing the product (adoption) or the product would become an integral part of the consumer’s lifestyle (internalization).
The diffusion of innovations is a communications model that consists of four elements: the innovation, communication channels, time and the social system within which the innovation is spreading. It determines the ease/how the speed at which an innovation is being adopted and diffused amongst consumers.
Define “pervasive computing” in your own words. What changes is it likely to bring about in the way marketers approach the internet?
Pervasive computing aims to enable people to accomplish an increasing number of personal and professional transactions using a new class of intelligent and portable devices. It gives people convenient access to relevant information stored on powerful networks, allowing them to easily take action anywhere, anytime. These new intelligent appliances or “smart devices” are embedded with microprocessors that allow users to plug into intelligent networks and gain direct, simple, and secure access to both relevant information and services. These devices are as simple to use as calculators, telephones, or kitchen toasters.
Marketers will likely develop new products and services that successfully take advantage of this new technology. Some applications successfully in place already are RFID payment systems & wireless parking meters so you can use your cell phone.
Be prepared to describe the strategic drivers of wireless adoption and to give an example of each.
Context – Providing necessary information when and where the customer needs or wants it. The content trigger is in the hands of the customer, not of the marketer. Context in the wireless environment has two dimensions: Localization – Through carious geographic systems the location of the user can be identified and information specific to that location can be provided. A consumer driving down the highway can be beamed information about attractions in the area. Personalization – The customer can select not only the type of information desired but also the frequency of information provision. For example, the consumer may select specific stocks and specific price levels at which he or she wished to be notified.
Time Sensitive- Screens are small and storage is limited, so information must be provided at the time appropriate to the customer, not convenient for the marketer. As a customer passes a store in a shopping mall, he or she may be willing to receive a coupon for a purchase in that store, which can be saved or retained on the screen until the customer shows it when checking out the purchase.
High Value – The coupon will have to have a reasonable value in order to make it welcome in the wireless context.
Voice activation – There are many situations, driving in particular, in which it I not safe and in many locales, not legal to use the keyboard of a mobile device. Voice activation is the solution in these situations.
One-click payment mechanisms – Consumers are not going to be willing to enter credit card information on mobile keyboards and may be uncomfortable with the idea of their credit card data being transmitted wirelessly. They are not likely to be willing, either, to have numerous vendor-specific accounts, especially for micropayments. A system in which payment is easily and securely authorized and billed to a single account will be necessary to enable frequent use of m-commerce services.
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. Embedded devices that identify the owner are one possibility. Smart cards that can be inserted and removed to protect encoded information are another.
Privacy – In addition to protecting personal data, 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 technological capabilities like geographical locational services.
Expanded permission marketing – Marketers will have to extend the concept of Permission Marketing beyond simple opt-in scenarios. They must find out what kind of information consumers are willing to receive, how often they are willing to receive transmissions, and where they are willing to receive it. This means an accurate customer database that is updated in real time.