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|CHAPTER 5 Consumer Markets and Buyer Behavior 187

                                                       Individual Differences in Innovativeness

                                                       People differ greatly in their readiness to try new products. In each product area, there
                                                       are “consumption pioneers” and early adopters. Other individuals adopt new products
                                                       much later. People can be classified into the adopter categories shown in Figure 5.7.32
                                                       As shown by the curve, after a slow start, an increasing number of people adopt the new
                                                       product. As successive groups of consumers adopt the innovation, it eventually reaches
                                                       its cumulative saturation level. Innovators are defined as the first 2.5 percent of buyers to
                                                       adopt a new idea (those beyond two standard deviations from mean adoption time); the
                                                       early adopters are the next 13.5 percent (between one and two standard deviations); and
                                                       then come early mainstream, late mainstream, and lagging adopters.

                                                             The five adopter groups have differing values. Innovators are venturesome—they try
                                                       new ideas at some risk. Early adopters are guided by respect—they are opinion leaders in
                                                       their communities and adopt new ideas early but carefully. Early mainstream adopters are
                                                       deliberate—although they rarely are leaders, they adopt new ideas before the average per-
                                                       son. Late mainstream adopters are skeptical—they adopt an innovation only after a majority
                                                       of people have tried it. Finally, lagging adopters are tradition bound—they are suspicious of
                                                       changes and adopt the innovation only when it has become something of a tradition itself.

                                                             This adopter classification suggests that an innovating firm should research the char-
                                                       acteristics of innovators and early adopters in their product categories and direct initial
                                                       marketing efforts toward them.

                                                       Influence of Product Characteristics on Rate of Adoption

                                                       The characteristics of the new product affect its rate of adoption. Some products catch on al-
                                                       most overnight. For example, Apple’s iPod, iPhone, and iPad flew off retailers’ shelves at an
                                                       astounding rate from the day they were first introduced. Others take a longer time to gain
                                                       acceptance. For example, the first HDTVs were introduced in the United States in the 1990s,
                                                       but the percentage of U.S. households owning a high-definition set stood at only 12 percent
                                                       by 2007. By the end of 2013, HDTV penetration was more than 85 percent.33

                                                             Five characteristics are especially important in influencing an innovation’s rate of adop-
                                                       tion. For example, consider the characteristics of HDTV in relation to the rate of adoption:

                                                          Relative advantage. The degree to which the innovation appears superior to existing products.
                                                          HDTV offers substantially improved picture quality. This accelerated its rate of adoption.

                                                          Compatibility. The degree to which the innovation fits the values and experiences of po-
                                                          tential consumers. HDTV, for example, is highly compatible with the lifestyles of the
                                                          TV-watching public. However, in the early years, HDTV was not yet compatible with
                                                          programming and broadcasting systems, which slowed adoption. As high-definition
                                                          programs and channels became the norm, the rate of HDTV adoption increased rapidly.

   FIGURE | 5.7                                        % Share of all adopters                                                                                                        Lagging adopters
Adopter Categories Based                                                        100 16%
on Relative Time of Adoption
of Innovations                                                                                                                                                 Late mainstream
                                                                                                                                                                       34%
                      New product marketers often
                      target innovators and early                                75
                      adopters, who in turn influence
                      later adopters.                                                                                                  Early mainstream
                                                                                 50 34%

                                                                                 25 Early adopters
                                                                                                                       13.5%

                                                                                            Innovators
                                                                                                2.5%

                                                                                   0

                                                                                                                          Time of adoption of innovation
   183   184   185   186   187   188   189   190   191   192   193