Innovation
Product, service, or idea that consumers within a market segment perceive as new
What is an innovation?
Has utilitarian benefits that are different from or better than those of alternatives
What is the "functional" benefit offer?
Purchase of an innovation
What is Adoption?
Percentage of the population that has adopted an innovation at a specific point in time
What is diffusion?
Innovation that has a very short product life cycle
What is a fad product life cycle pattern?
Pronounced effect on consumption practices
What is the innovation characteristic by degree of novelty "dynamically continuous"?
Involving consumers in creating value through participation in new product development
What is Cocreation?
The desire not to buy an innovation
What is Resistance?
Trick Question, Both curves show results
What is the preferred diffusion curve?
Degree to which consumers influence each other in the diffusion of a new product
What is contagion product life cycle pattern?
An offering that is so new that one has never known anything like it before
What is the innovation characteristic by degree of novelty "discontinuous"?
It has new social meaning
What is the "symbolic" character offer?
Characteristics of Adopter Groups
What is:
-Innovators
-Early Adopters
-Early Majority
-Late Majority
-Laggards
How an offering diffuses through the market
How quickly it does so
What are important issues with diffusion?
Innovation that has a moderately long and potentially cyclical product life cycle
What is fashion product life cycle pattern?
Has an effect on existing consumption patterns
What is "what does innovation effect"?
It means that there are new and different uses for a particular product
What is the "breadth" characteristic?
Awareness -> Information Collection/Search -> Attitude Formation -> Trial -> Adoption
What is the High-effort Hierarchy of Effects?
What is an exponential diffusion curve?
Innovation that has a lengthy product life cycle
What is a classic product life cycle pattern?
Limited effect on existing consumption patterns
What is the innovation characteristic by degree of novelty "continuous" offer?
Appeals to one’s sensory needs
What is the "hedonic or aesthetic" characteristic offering?
Awareness -> Trial -> Attitude Formation -> Adoption
What is the Low-Effort Hierarchy of Effects?
Characterized by slow initial growth followed by a rapid increase
What is an S-Shaped diffusion curve?
-Introduction
-Growth
-Maturity
-Decline
What is the product life cycle?