Jan 16, 2011

Marketing Notes-Consumer Adoption Process

a) Stages in the Adoption Process
1. Awareness. In this stage the consumer is aware of the new product but lacks further information about it.
2. Interest. The consumer is motivated to seek information about the new product.
3. Evaluation. The consumer determines whether or not to try the new product.
4. Trial. The consumer tries the new product on a small scale to test its efficacy in meeting his or her needs. Trial can be imagined use of the product in some cases.
5. Adoption. The consumer decides to make use of the product on a regular basis.

b) Individual differences in the adoption of innovations
1. Innovators. Innovators help get the product exposure but are not often perceived by the majority of potential buyers as typical consumers.
2. Early Adopters. This group serves as opinion leaders to the rest of the market.
3. Early Majority. Some 34% of the market that is the "typical consumer" but likely to adopt innovations a little sooner.
4. Late Majority. This group is skeptical and adopts innovations only after most of the market has accepted the product.
5. Laggards. This group is suspicious of change and adopts only after the product is no longer considered an innovation.

C. Product Life-Cycle Strategies
After launching the new product, management wants the product to enjoy a long and happy life. Although it does not expect the product to sell forever, the company wants to earn a decent profit to cover all the effort
a) Product development begins when the company finds and develops a new-product idea.
b) Introduction is a period of slow sales growth as the product is introduced in the market.
c) Growth is a period of rapid market acceptance and increasing profits.
d) Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers.
e) Decline is the period when sales fall off and profits drop.

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