Innovation Flashcards
(15 cards)
What is innovation?
Process of creating or designing new ideas and methods
Innovation leads to the development of new products and improvements in existing products.
Name the five adopter categories.
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggards
These categories represent consumer behavior in adopting new products.
Who are Innovators?
Those who want to be the first to acquire a new product and are risk takers
Innovators are typically a small percentage of the market.
Who are Early adopters?
Those who typically wait for the product or service to receive reviews before making a purchase - referred to as ‘influencers’
Early adopters play a crucial role in the diffusion of innovations.
What is the Early majority?
Represents most of the market (34%) - wait until tested by a trusted peer
Early majority consumers are more risk-averse compared to innovators and early adopters.
Describe Late majority.
Deemed conservative and are technology shy - peer pressured into purchasing a product or service
Late majority consumers typically adopt innovations after the majority of the market has.
Who are Laggards?
Last to adopt a new product - resent change and only adopt something new when forced to
Laggards are often resistant to new technologies.
What is differential advantage?
Customer perception on new innovation compared to existing products
A key factor affecting the rate of innovation diffusion.
Define compatibility in the context of innovation.
How closely a new product relates to consumers’ needs, values, and lifestyles
Higher compatibility leads to higher levels of diffusion.
What does complexity refer to in innovation diffusion?
Easier to understand and use a product, the more likely it is to be accepted
Complexity can hinder the adoption of new products.
What is communicability?
If benefits of innovation can be observed or described to consumers
Higher communicability leads to higher diffusion rates.
What is trialability/divisibility?
The higher the degree of trialability, the greater the rate of diffusion
Consumers can try and assess the product, e.g., free samples.
List the forms of innovation in New Product Development Context.
- Product Replacement and Improvements
- Product Additions
- New Product Lines
- New to the World
Each form represents a different strategy for introducing new products.
What are the 8 steps in the New Development process?
- New Product Strategy
- Idea Generation
- Screening
- Concept Testing
- Business Analysis
- Product Development
- Market Testing
- Commercialisation
What does inclusivity in product development entail?
- Demonstrate Respect
- Go Beyond One-Off Campaigns
- Customisation and Representation
