marketing of innovation Flashcards
(32 cards)
What is innovation in consumer behavior?
Any product or service that consumers perceive to be new.
Innovations can lead to changes in acquisition, consumption, and disposition patterns.
What are the characteristics of innovative products?
Relative Advantage, Compatibility, Complexity, Trialability, Observability.
These characteristics influence the diffusion of innovation.
List the adopter categories in consumer behavior.
- Innovators
- Early Adopters
- Early Majority
- Late Majority
- Laggards
What are the 5 stages of the adoption process?
- Awareness
- Interest
- Evaluation
- Trial
- Adoption / Rejection
What does the firm-oriented approach to innovation define?
Innovation from the perspective of the company. If the product is new to the company, it’s considered an innovation.
How does the product-oriented approach define innovation?
Based on features inherent in the product and their effects on consumers’ established usage patterns.
What is the market-oriented approach to innovation?
Defines innovation based on consumer exposure to new products. If purchased by a small percentage of the segment, it’s an innovation.
What defines the consumer-oriented approach to innovation?
Based on consumers’ perception. If consumers think it’s new, it’s considered an innovation.
Fill in the blank: Continuous innovation involves the introduction of a _______ product rather than a totally new product.
modified
What is dynamically continuous innovation?
Involves the creation of a new product or modification of an existing product that results in some changes to existing behavioral patterns.
Define discontinuous innovation.
Introduction of a revolutionary or pioneering product that involves major technological advancement.
True or False: Discontinuous innovation is easy to market initially.
False
What is the impact of continuous innovation on established usage patterns?
It has the least disruptive influence.
What type of innovation results in some changes to existing behavioral patterns?
Dynamically Continuous Innovation
What are the possible changes brought about by innovations?
- Changes in acquisition
- Changes in consumption
- Changes in disposition patterns
What is an adopter in the context of innovation?
An individual or entity that accepts and uses a new innovation or product
Adopters play a crucial role in the diffusion of innovations.
What are the categories of adoption?
Types of adoption can be categorized into several groups
Commonly discussed categories include innovators, early adopters, early majority, late majority, and laggards.
What are the main approaches to innovation?
The main approaches include continuous, dynamically continuous, and discontinuous innovation
These approaches differ in the extent of change they introduce to the market.
Define continuous innovation.
A type of innovation that involves minor improvements or updates to existing products
Examples include software updates or new flavors of a product.
What characterizes dynamically continuous innovation?
Innovation that requires some behavioral changes from consumers but does not drastically alter existing habits
An example would be the introduction of smartphones that integrate multiple functions.
Describe discontinuous innovation.
A radical innovation that significantly changes consumer behavior and creates new markets
An example is the invention of the internet.
What is official (closed) adoption?
Adoption that occurs through formal channels and structures
This may involve regulatory approval or organizational endorsement.
What is sensitive adoption?
Adoption that is influenced by social factors and personal feelings
This can be seen in products that require social acceptance.
