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Understanding Cross-Cultural Diffusion: Innovations, Reinnovations, and Consumer Adoption

This overview explores the concept of cross-cultural diffusion of innovations, highlighting how new offerings are perceived across different segments within and between cultures. It delves into the impact of innovations on existing consumption patterns, including substitution, complementarity, and the quest for variety. Key examples like GPS systems, cellular phones, and various cultural phenomena illustrate the evolution of ideas. It also addresses challenges such as the chicken-and-egg problem in adoption, resistance to innovation, and factors influencing diffusion and consumer acceptance.

alyssa-harrington
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Understanding Cross-Cultural Diffusion: Innovations, Reinnovations, and Consumer Adoption

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Presentation Transcript

  1. Innovation • Offering which • Is perceived as new by one or more segments • Within cultures • Between cultures • Affects existing consumption • Substitution • Complementarity • Variety seeking • May or may not involve new technology

  2. Some Examples of Cross-Cultural Diffusion and Reinnovation • Food • Virtual pets

  3. Reinnovation Over Time • Fashion • Music

  4. Some Examples of Innovations and Reinnovations • GPS systems (*) • Cellular phones • Torn jeans • Hip hop music (*) • Nail polish • ATM cards and machines (*) • Credit cards (*) • High end coffee shops • Vitamin C • Cranberry juice • Refrigerators • E-mail

  5. The Chicken-and-Egg Problem • Some programs require two components, each of which must be present before the other can be attracted • E.g., an online auction site needs both buyers and sellers. Buyers are less motivated to come when there are few sellers, but buyers are needed to attract sellers. • A “jump start” may be needed—e.g., period of free service in return for early signup

  6. Examples of “Chicken-and-Egg” Vulnerable Ventures • Personals sites • Auction sites • Text messaging systems • “Wiki” projects • Carpool systems • Electric cars • Computers and software • Fashion

  7. Types of Innovations—Degree of Innovation • Continuous--same product, just small improvements over time--e.g., typical automobile/stereo system model changes • Dynamically continuous--product form changed, but function and usage are roughly similar--e.g., jet aircraft, ball point pen, word processor • Discontinuous--entirely new product; usage approach changes (e.g., fax)

  8. Continuity and Discontinuity of Innovations

  9. Types of Innovations--Benefit • Functional: Tangible benefit • Hedonic/aesthetic: Contribution of pleasure—e.g., new foods, music • Symbolic: Self-expression—e.g., fashions; framing of benefits

  10. Innovation by Co-Creation • Consumers participate in the development of new products • Design of custom products • Contribution of new product ideas • May better suit customer needs • May be spread more readily online • Building relationship with the brand

  11. Resistance to Innovation • Concerns over innovations • Difficulty in migrating or learning to use the product • Inertia

  12. Adoption Decisions

  13. DIFFUSION Innovators and Imitators: The Lifecycle of A Product

  14. Adopter Groups: Implications • Demographic groups • Social influence • Personality characteristics • Culture • Usage levels

  15. Diffusion and Product Lifecycle Curves

  16. One Diffusion Pattern— Nicely Balanced... 100% adoption orsaturation point

  17. Longevity of Innovations • Types • Fads • Fashion • Classic • Disadoption

  18. Influences on Diffusion and Resistance • Perceived value • Perceived benefits • Relative advantage • Perceived costs • Uncertainty/risk • Consumer learning requirements • Compatibility • Trialability • Complexity • Social relevance • Legitimacy and adaptability • Social system • Modernity • Physical distance • Homiphily • Opinion leadership

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