Class 23: The Wireless Future 11/26

1. Explain the nature of the consumer adoption process. How is it different from the concept of diffusion 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.
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.
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, concept shows a process that is normally distributed around a population mean.
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.
2. Define “pervasive computing” in your own words. What changes is it likely to bring about in the way marketers approach the Internet?
Pervasive computing is a post-desktop model of human-computer interaction in which information processing has been thoroughly integrated into everyday objects and activities. As opposed to the desktop paradigm, in which a single user consciously engages a single device for a specialized purpose, someone “using” ubiquitous computing engages many computational devices and systems simultaneously, in the course of ordinary activities, and may not necessarily even be aware that they are doing so. Pervasive computing devices are not personal computers as we tend to think of them, but very tiny – even invisible – devices, either mobile or embedded in almost any type of object imaginable, including cars, tools, appliances, clothing and various consumer goods – all communicating through increasingly interconnected networks.
3. 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
–localization: the location of the user can be identified and information specific to that location can be provided
–personalization: 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: solves accidents when people drive while using cell phones or texting.
~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.