Chapter 15: Innovations: Adoption of, Resistance to, and Diffusion of Innovations
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CHAPTER 15
Innovations: Adoption, Resistance, Diffusion
CHAPTER SUMMARY
Innovations are products, services, ideas, or attributes perceived to be new by consumers in a
market segment. Innovations can be characterized as functional, symbolic, and/or
hedonic/aesthetic in nature. Innovations also vary in the degree of behavioral change their
adoption requires. A continuum of innovativeness in products ranging from continuous to
discontinuous innovations can be identified. Innovations may represent fads, fashions, or
classics, and hence may exhibit a short, moderate, or long life cycle. Product life-cycle length
may be fostered by enhancing the breadth of the innovation and by encouraging use
innovativeness in consumers.
There are three key issues of importance to marketers introducing innovations. First is
breaking down consumers’ resistance to innovations, second is facilitating consumers’
adoption of the innovation, and third is affecting the diffusion of the innovation through the
marketplace. A high- (vs. low-) effort hierarchy-of-effects adoption process occurs when the
innovation is seen as economically, physically, socially, or psychologically risky. Some
individuals called innovators adopt products independently of the decisions of others. Special
marketing efforts may be geared toward innovators since their adoption directly or indirectly
influences the adoption of other consumers (by word of mouth or social modeling).
Characteristics of the innovation and the social system in which it is introduced affect
resistance, adoption, and diffusion. First resistance is more likely to be overcome when the
innovation is perceived to provide value (i.e., involve a relative advantage, low cost, and low
switching costs), involve minimal consumer learning (i.e., high compatibility with existing
needs, values, and behaviors; trialability; and low complexity), involve relatively high certainty,
and be viewed as high in social relevance, legitimacy, and adaptability. Consumers’
perceptions of the characteristics of the innovation can in turn be affected by marketing
decisions.
Resistance, adoption, and diffusion are also affected by the characteristics of the social
system in which the innovation operates. The more dense the social network and the more
homophilous the social system, the more likely information will be transmitted from adopters to
nonadopters. This information transmission may directly affect adoption likelihood. Although
they offer relative advantages, innovations can result in negative social and economic
consequences.
CHAPTER LEARNING OBJECTIVES
At the end of this chapter, students will be able to:
1. Describe how innovations can be classified in terms of their novelty, the benefits they
offer, and their breadth.
2. Explain how consumers adopt an innovation, why they might resist adoption, and why
marketers must understand the timing of adoption decisions.
3. Define diffusion and discuss how diffusion curves relate to the product life cycle.
4. Outline the main factors that affect adoption, resistance, and diffusion, and show how
marketers can use their knowledge of these factors to market more effectively.
Chapter 15: Innovations: Adoption of, Resistance to, and Diffusion of Innovations
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CHAPTER OUTLINE
I. Innovations
A. Defining Innovation
1. An innovation is a product, service, attribute, or idea that is perceived as new
by consumers within a market segment, and that has an effect on existing
consumption patterns.
2. Innovations are classified by (1) the type of innovation, (2) the type of benefits
offered, and (3) the breadth of innovations.
B. Innovations Characterized by Degree of Novelty
1. Innovations Characterized by Degree of Novelty (see Innovation continuum)
a) Continuous innovation has limited effect on existing consumption.
(1) Most new products on the market are continuous innovations.
b) Dynamically continuous innovation has a more pronounced effect on our
consumption practices.
(1) Often these innovations involve new technology.
c) Discontinuous innovation is a product so new that we have never known
anything like it before.
2. Innovations Characterized by Benefits Offered
a) Functional innovations offer functional performance benefits over existing
innovations.
b) Aesthetic or hedonic innovations appeal to aesthetic, pleasure seeking,
and/or sensory needs.
c) Symbolic innovations are products, services, attributes, or ideas that have
new social meaning.
3. Innovations Characterized by Breadth
a) Refers to the new and different uses to which a new product is put (e.g.,
baking soda has a breadth of consumer uses from cat litter to cleaning
teeth)
4. Innovations and Cocreation
a) Cocreation refers to actively involving consumers in creating value via
participating in new product development and other marketing activities
5. The Consequences of Innovations
a) May be negative, unintended consequences (e.g., divide in who can afford
MRIs or expensive healthcare, may disrupt social norms, may put companies
out of business and people out of jobs).
II. Resistance Versus Adoption
A. Whether Consumers Adopt an Innovation
1. Resistance reflects consumers’ desire not to purchase the innovation, even in
the face of pressure to do so.
a) Separate concept from adoption
B. How Consumers Adopt an Innovation
1. High-Effort Hierarchy of Effects -A purchase of an innovation based on
considerable decision-making effort
a) The consumer thinks carefully about the product, gathers as much
information about it as possible, and forms an attitude based on this
information.
b) Based on the attitude, the consumer may try the product and, if the trial
experience is favorable, may adopt the product.
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a) Innovators tend to have a great deal of influence beyond their own
immediate groups and tend to be opinion leaders.
4. Personality
a) Innovators have a high need for stimulation.
b) Inner directed
c) Less dogmatic
d) Less planning when making decisions
5. Cultural Values
a) Innovativeness is associated with cultures that value individualism,
assertiveness, and openness to change.
6. Media Involvement
a) Innovators are frequent users of the media and rely on external
information extensively.
7. Usage
a) Innovators are heavy users within the product category.
III. Diffusion
A. How Offerings Diffuse Through a Market
Diffusion reflects the behavior of the marketplace of consumers as a group.
The S-Shaped Diffusion Curve
a) Products first spread through the market relatively slowly.
b) After a certain period of time, the rate of adoption dramatically increases,
and then slows again.
The Exponential Diffusion Curve
a) A high percentage of the market purchases the product as soon as it is
available.
b) With each additional time period, the adoption increases at a decreasing
rate.
B. Factors Affecting the Shape of the Diffusion Curve
1. Perception of social, psychological, economic, performance, or physical risk
2. Consumers may be unsure about how long a product will be on the market.
3. High switching costs
4. Diffusion curves reflect the rate of adoption only, not the time period under
analysis.
C. How Diffusion Relates to the Product Life Cycle
1. The product life cycle (PLC) concept is as follows:
a) Products go through a period of introduction.
b) Growth becomes rapid as more competitors enter the market and
consumer acceptance increases.
c) As competition increases, weaker competitors drop out and product sales
stabilize.
d) Eventually consumer acceptance wanes, and product sales decline.
2. Diffusion focuses on the percentage of the market that has adopted the
product while Contagion is the degree to which consumers influence each
other in the diffusion of a new product
3. PLC relates to sales of a product over time.
4. Marketing Implications
a) Marketers can try to prevent a product’s decline.
b) Marketers can encourage use innovativeness to spark contagion.
c) Marketers can try to diagnose their product’s likely life-cycle pattern.
(2) Fashions or trends have lengthier PLCs than fads.
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b) Fit with an entire system of products
c) Force the innovation to be used as the industry standard
d) Use promotions to show trialability
e) Demonstrations can show the benefits of using the product.
f) Simulating trials (for consumers to try the product).
D. Social Relevance
A factor that affects resistance, adoption, and diffusion is the innovation’s
social relevance, particularly its observability and social value; it has
1. Observability
a) The extent to which the innovation is observable to others
(1) Consumers are more likely to adopt an observable product visibly
consumed by others.
1. Social Value
a) The extent to which a product has social cachet (it is seen as socially
desirable and/or appropriate and therefore generates imitation.
2. Marketing Implications
a) Extensive advertising, promotion, and distribution can be used to
overcome observability problems.
b) Distinctive packaging, styling, color, or unique promotions can enhance
observability.
c) Social relevance can be heightened by advertising, particularly
advertising that ties product use with potential social approval.
d) Social value can be enhanced by associating the product with some
social entity, cause, or value.
E. Legitimacy and Adaptability
1. Legitimacy refers to the extent to which the innovation follows established
guidelines for what seems appropriate in the category.
2. Adaptability refers to the innovation’s potential to fit in with existing products or
styles.
3. Marketing Implications
a) Legitimacy can be enhanced by demonstrating how the innovation came
into being.
b) Lack of adaptability can be overcome by showing the product as having
uses that extend beyond its original functions.
F. Characteristics of the Social System
1. Modernity
a) Modern social systems are those that have a positive attitude toward
change
2. Homophily
a) Overall similarity among members of a group
(1). Normative pressures may speed adoption and diffusion of an
innovation.
3. Physical Distance
a) When members of the social system are spread far apart, diffusion is
slower.
4. Opinion Leadership
a) Key influencers among members can affect adoption and diffusion
through credibility.
5. Cultural Self-Perspectives
a) Individualism vs. collectivism impacts how consumers have a positive
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attitude toward change
5. Marketing Implications
a) Marketing efforts can affect resistance, adoption, and diffusion by
affecting the social system.
b) Marketers can identify those who have not adopted the innovation.
(1) Passive consumers are those who have tried the product but are
unlikely to provide information to others about it.
(2) Active rejecters are those who have tried the product and are likely
to provide unfavorable word of mouth.
c) Marketers can encourage word of mouth to help diffuse a product faster.
d) Negative word of mouth can be overcome by:
(1) Correcting the problem so WOM will not be negative
(2) Counteracting with advertising and personal selling
V. The Consequences of Innovations
A. Innovations often offer relative advantages that may not have previously existed,
but they are not always good from the standpoint of society.
QUESTIONS FOR REVIEW AND DISCUSSION
Possible answers are as follows.
1. How can innovations be described in terms of degree of novelty and types of benefits?
How does the degree of novelty affect consumers’ behavioral change?
Innovations can be described in terms of degree of novelty from an innovation that has
limited effects on existing consumption patterns (continuous innovation), to an innovation
that has a pronounced effect on consumption practices and often involves new
2. What is cocreation and what are its potential benefits?
Cocreation is when a consumer (or other party besides the manufacturer) works
together to create a brand, product, service, or other offering. This is a smart way
Chapter 15: Innovations: Adoption of, Resistance to, and Diffusion of Innovations
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SUGGESTED EXERCISES AND TEACHER GUIDELINES
1. Read several publications like BusinessWeek, Fortune, or the Wall Street Journal and
identify two innovative products and/or services. (a) Why are these offerings innovations?
(Relate your answers to the chapter’s definition of an innovation.) (b) What type of
innovations are they––continuous, dynamically continuous, or discontinuous?
Functional, aesthetic, symbolic? (c) Describe whether you think adoption and diffusion of
these offerings will be fast or slow by using concepts associated with the innovations,
such as relative advantage, operability, and legitimacy. (d) Indicate how marketers might
overcome resistance and speed adoption and diffusion for those offerings whose
diffusion is likely to be slow.
Ask students to consider other publications that might contain more innovations such as
2. Consider a product that you think represents an innovation but that you have not yet
purchased. Using the terms discussed in this chapter, indicate why your resistance to
this product is high or low.
Satellite radio might be an example of a product category that is in the early adoption
phase of diffusion. While some new car models come equipped to receive satellite radio,
3. Identify a new product that you consider to be a fad. Why is it likely to be a fad? What
can marketers do to enhance the length of this product’s life cycle?
The Atkins diet is a great example of a fad. It is a fad because it is an unsustainable diet
plan that promises quick and easy results. When a fad catches on, consumers gravitate
to it because it is the next big thing. Marketers can use celebrity spokespeople, news
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ADDITIONAL QUESTIONS
1. Develop a definition of an innovation. Identify those characteristics of innovations that are
important for marketers.
2. Discuss what it means to introduce a marketing innovation. Develop a process for
successfully introducing a marketing innovation.
3. Recreate the typical adoption/diffusion curve. Identify the factors you believe will
influence the actual shape of this curve for a real product. Identify two innovations you
are familiar with and discuss how the factors you have identified influenced its diffusion in
the market.
4. Create a list of reasons to explain why a marketing innovation might fail. For each of
these reasons for failure, propose a way for avoiding the failure.
5. Marketers are responsible for ensuring the successful adoption of new innovations.
Select a new innovation and explain what marketers could do to make its adoption
successful.
6. Recreate the curve that shows how consumer segments adopt innovations (innovators,
early adopters, and so on). Explain how this curve can be helpful to marketing managers
trying to project production, pricing, distribution, and other issues.
7. Characteristics of an innovation might cause it to be accepted or rejected. Explain what
can be done to decrease the likelihood that these characteristics will cause resistance to
the innovation.
8. Describe those characteristics of the social system that might cause an innovation to be
accepted or rejected. Propose how marketers can address these potential barriers to
adoption.
EXPERIENTIAL EXERCISES AND CLASSROOM EXAMPLES
Students who learn more readily through visual and tactile stimuli will benefit from the
introduction of physical examples into the classroom.
“Gotta Have It” Exercise
Buy several packets of play money from a local toy store and distribute it in equal
amounts to each student in the class. Tell students they are to use the money to bid in an
auction of products with limited commercial availability. The items are:
Folding bicycle helmet: The only bicycle helmet that folds after use, combining function,
convenience, and safety in a streamlined design. The three-piece helmet meets or
exceeds international safety standards, providing maximum impact absorption and head
protection. Complete with nylon “fanny pack” carrying case.
Writing pen with light: This brushed aluminum ballpoint pen with enclosed light is perfect
for taking notes in class during videos and PowerPoint presentations. The pen’s patented
Accu-Light, which is powered by a replaceable watch battery, illuminates your notepaper
without disturbing others in the room.
Solar radio: Patented spring-engine technology powers this advanced radio. Simply turn
the crank for 30 seconds to generate enough energy to operate the AM/FM radio for one
Chapter 15: Innovations: Adoption of, Resistance to, and Diffusion of Innovations
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hour. Also operates indefinitely in direct sunlight thanks to a solar panel that draws
energy as needed.
Virtual viewing TV glasses and headphones: Transform any video source into a personal
screening room with these lightweight glasses and accompanying stereo headphones.
Glasses connect with video cables (included) to the video output jack of any video
source—TV, VCR, LaserDisc, DVD, camcorder. Enjoy video programming as if it were
being shown on a 52-inch screen.
Cordkeeper hairdryer: This lightweight, 1875-watt, two-speed, two-heat setting hairdryer
has a push-button mechanism that allows you to retract the electrical cord to keep it out
of sight and out of harm’s way.
Tea bag mug: Colorful 12-ounce ceramic mug has a built-in bag holder for soggy tea
bags. Use it to carry your fresh tea bag to a favorite spot, and brew your tea then tuck the
used bag into the handy holder and sip the tea while it’s hot.
Electronic wall calendar: This multifunction, programmable wall calendar lets you keep
track of all the important information in your life with the touch of a digital pen. Hang it on
your wall and “pencil” in meetings, appointments, holidays, birthdays, anniversaries, and
reminders. Includes a shopping list function, calculator, clock/timer, and address book for
quick-and-easy access to all the information you need to stay organized and on top of
things.
Programmable alarm clock: Rest assured that you’ll get to class on time with this
electronic alarm clock that allows you to set seven different wake-up times—one for each
day of the week—with the touch of two simple buttons. In less than 30 seconds on
Sunday night, you can program your rise-and-shine calls for the entire week. Sleep
peacefully knowing that, even if you forget about your 8 a.m. class on Tuesday, your
alarm clock will not.
The instructor has the option of setting reserves (minimum opening bids) on each item or
of letting students determine the starting price. Do not be concerned that students will not
“get into” the activity—even the quietest individuals often get caught up in a bidding war.
After the auction, discuss both the outcome (who ended up with what) and the process
(why they bid on specific items and how they determined what their highest bid would
be). It usually becomes clear that some students get a great deal of utility out of being
the “first on the block” to have something (innovators), while others only bid and bought if
they truly needed the product. This leads to a broader discussion of the diffusion process
and ways in which marketers can attempt to accelerate the acceptance of new products
and services.
CLASSROOM GROUP ACTIVITY: INNOVATIVE PRODUCT
ADVERTISEMENT ANALYSIS: 15 MINUTES
I. Start Up
A. Purpose of the activity
1. This activity will give students an opportunity to analyze how marketers use
advertising to influence the adoption and diffusion process.
B. What the instructor will do
1. The instructor must identify advertisements from one of the following sources
a) Assign students to search for advertisements containing innovative
marketing initiatives in advance of the class activity.
b) Collect advertisements for innovative or new products from current media.
Chapter 15: Innovations: Adoption of, Resistance to, and Diffusion of Innovations
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c) Select advertisements included in the chapter.
2. The instructor will divide people into small groups, assign them an
3. Optionally, groups may be provided with clear overhead acetates and markers
so they can summarize their discussions and make presentations after their
analysis and discussion.
C. What the participants will do
1. The participants will work in small groups to study how marketers use
advertisements to influence the adoption and diffusion process. After a period
of small-group discussion, they will make reports to the large group.
D. Rules for this experience
1. Groups are to work separately from each other. Individuals should rely on their
knowledge from the book and may refer to their notes and the book as
necessary.
II. Experience
A. Group up.
1. Have students form groups of no more than five. This exercise will work in
groups of any size; however, room restrictions that do not allow for moving
furniture may make group work more difficult.
B. Assign advertisements.
1. Each group should be assigned a single advertisement on which to focus.
a) These advertisements will come from one of the sources discussed
above.
C. Specific actions for groups
1. The groups are responsible for (1) developing a list describing how the ads
effectively present the innovative product, and (2) developing
recommendations for improving the ad.
2. Optionally, groups can summarize their discussions on clear overhead
acetates to facilitate presentations after their analysis and discussion.
3. Questions to be answered by small groups
a) Consider the advertisement your group has been assigned. Develop a
critique of the ad that outlines (1) what the ad does well to present the
innovative product (especially how it addresses potential sources of
resistance in the marketplace), and (2) what can be done to make the ad
(or one like it) potentially more effective.
4. Large-group discussions
a) Have each group present its ideas to the class in a round-robin format.
III. Debrief and Unveil Concepts
A. Discuss the activity itself.
1. The purpose of this discussion is to allow students to express what they felt
about the experience itself.
2. Ask students to describe their experiences of doing the activity.
a) Likes and dislikes about what just happened
b) How they felt during the experience
c) What is realistic, unrealistic about the exercise?
d) What will be different when they do this for their own advertisement?
B. Discuss the content of the experience.
