Chapters 13

What is an innovation, and what is diffusion of innovations?

What is the Product × Market Matrix used to classify?

• Innovation: A new product, service, or idea that consumers perceive as new.

• Diffusion of innovations: The process by which an innovation spreads through a population over time.

It classifies innovations based on:

• How new the product is, and

• How new the market is.

What are the three types of innovations based on degree of newness?

Which type of innovation best fits these examples?

• Continuous innovation: A small change to an existing product with little learning needed.

• Dynamically continuous innovation: A moderate change that requires some learning or behavior change.

• Discontinuous innovation: A totally new product that creates a major shift and requires completely new habits.

• Example 1: A new flavor of potato chips or a new model of a smartphone.

  • Type: Continuous innovation.

• Example 2: Electric toothbrushes, digital cameras, or streaming music.

  • Type: Dynamically continuous innovation.

• Example 3: The first personal computer, the internet, or self-driving cars.

  • Type: Discontinuous innovation.

What are the five adopter categories in Rogers' Diffusion of Innovations model?

What are the three cycles of adoption?

How do fashion, classic, and fad products differ?

1. Innovators - tech enthusiasts/curious/love new items

2. Early adopters - trendsetters, bragging, hype

3. Early majority

4. Late majority

5. Laggards

Fashion products

• Classic products

• Fad products

• Fashion: Gains popularity for a period before declining.

• Classic: Remains popular over a long period.

• Fad: Experiences rapid popularity followed by a quick decline.

What is the "Chasm" in Geoffrey Moore's Crossing the Chasm?

How do consumer concerns differ before and after the chasm?

The difficult transition between early adopters and the early majority, where many new products fail to reach mainstream consumers.

Before the chasm (Early adopters)

• Is the vision compelling?

• Is the product cool and innovative?

• Can I learn something from using it?

After the chasm (Mainstream consumers)

• Does it meet a need?

• Is it simple to use?

• Will it fit my lifestyle?

• Will I have to learn anything new?

What are the five prerequisites for new product success and define each.

• Low complexity: Easy to understand and use.

• Trialability: Can be tried before committing.

• Observability: Benefits are visible to others.

• Compatibility: Fits consumers' values, lifestyle, and existing habits.

• Relative advantage: Offers a clear improvement over alternatives.

What is the difference between standardization and localization?

What are the etic and emic perspectives?

What is creolization?

• Standardization: Uses the same marketing strategy across cultures.

• Localization: Adapts products and marketing to local cultures.

• Etic perspective: Focuses on similarities across cultures.

• Emic perspective: Focuses on the unique characteristics of each culture.

The integration of foreign customs into local culture, creating a blend of foreign and local practices. ^^blend of both