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The Buyer Decision (Adoption) Process For New Products

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Yee Man Ng

on 6 October 2015

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Transcript of The Buyer Decision (Adoption) Process For New Products

Adoption Process
The mental process through which an individual passes from first learning about an innovation to final adoption. (to become a regular user of a product by learning it) A new product can be something that you didn’t acknowledge it before.
Individual Differences in Innovativeness
Readiness of trying new products are difference
eg. “Consumption Pioneers” -- First group of people that try new products
eg. “Laggards” -- Last group of people that try new products
Consumer adopt a new product by time, and it is divided into 5 groups of people

Influence of Product Characteristics on Rate of Adoption
5 Characteristics
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
Bus2001-L07
The Buyer Decision (Adoption) Process For New Products

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Chan Chun Tao Bertrand s146121 Leung Chin Fung Hero s146529
Chan Ho Ki Cookie s146129 Ng Yee Man Christina s146668

Group 1
Content
1. Adoption Process
2. Individual Differences in Innovativeness
3. Influence of Product Characteristics on Rate of Adoption
4. Case Study
5. Q&A
6. Reference Page

eg. Online shopping on Taobao.com
First look for the information of the product you have never seen before (size, quality, colour), then the comments from other users
Adoption Process
5 stage in the adoption process on new product
Stage1: Awareness
Consumer know a new product is coming soon. They do not have information about the new product.
Stage2: Interest
Consumer is interested in the new product and seek for information.
Stage3: Evaluation
Consumer evaluate the product by others’ feedbacks or recommendation.They compare the new product with the existing product.
Stage4:Trial
The consumer tries the new product on a small scale to improve his/her estimate of its value. Consumer try the new product.

Example: Apple announce there will be a presentation for new product.
Example: The presentation provide information of the new product. Consumer will find the details from the internet.
Example: Table shows the difference of the past version of iPhone and latest iPhone.
Example: Apple provide samples in Store.
Stage5: Adoption
The consumer decides to make full scale and regular use of the new product. Consumer decide whether they buy it or not.
Example: Buy iPad
5 Categories of adopters
1. Innovators (2.5%)
Adopt new ideas with risks
2. Early-Adopters (13.5%)
Opinion leaders in communities, adopt new ideas carefully
3. Early-Majority (34%)
Seldom being leading roles, adopting new ideas before average person.
4. Late-Majority (34%)
Adopting ideas after the majority have tried it
Example: (throwback to 2007) Celebrities buying the first ever iPhone
Example: Loyal Apple fans
Example:
People who are interested in electronic devices and smart-phone
Some of the majority who seek for new change and advancement of technology
Example: The majority after the successful development of the smartphone market
5. Laggards (16%)
Unlikely to change and try new things, only adopt ideas when it becomes the mainstream or traditional stuff
Example: Our beloved dad and mum, or even our grandparents
Relative Advantage
The degree to which the innovation appears superior to existing products.

The degree to which a consumer believes that a good or service is better at some function than other products.
Compatibility
The degree to which the innovation fits the values and experiences of potential consumers.

Compatibility is how the consumer perceives the new product or service into the person’s lifestyle choices.
Complexity
The degree to which the innovation is difficult to understand or use
Divisibility
The degree to which the innovation may be tried on a limited basis
Communicability
The degree to which the results of using the innovation can be observed or described to others
Real Life Example
iPad Air 2
Relative advantage : Higher resolution level and user-friendly system (compared with Samsung)

Compatibility : The iPad is suggested to fit with the lifestyles of all users. Because of the popularity of Apple product, Apple assumes that the shift from using a laptop would be smooth.
5 Characteristics
Divisibility : One of the main features of designing the iPad was an affordable price. Apple tried their very best to get it to the hands of as many people as possible. As this help to speed up the adoption rate.

Communicability : Since iPad depends on demonstration and descriptions, Apple shown its product in every Apple Store to ensure that iPad can be quickly picked up and adopted.
Complexity : iPad emphasize on “ easy and so simple” it is to use it. The iPad immediately comes to life as soon as one hits the power button.
Apple states "I don't have to change myself to fit the product, it fits me."
Case Study - “17”
The hottest social and streaming application in September after the imperial ruling of Instagram
Developed and powered by Jeffrey Hung, famous artist in Taiwan
Spread among the entertaining industry in Taiwan, Hong Kong and China
Then many teenagers follow the trend and the app itself becomes the highest download-rate in the market
Case Study - “17”
Characteristics of “17”
1.Relative Advantage

17 is a combination of Instagram and Periscope which relatively dominated many social network platform
17 is the only social networking application that featuring “Profit generation”, user can generate profit by doing streaming, with respect to the statistics of viewers and durations of each user
Influence: Doing good on the “Early-Adopters”

2. Compatibility

The new trend on social networking platform is “streaming”, broadcasting yourself doing different stuffs or give a talk about something
Teenagers nowadays love to share their personal things to friends on social network platform
Large potential group of consumer
Influence: Doing good on both “Majority”

3. Complexity

It is very understandable for teenages who frequently being active on social network platforms like Facebook and Instagram
It user hud is very user-friendly, instruction are good enough to let everyone use the application
Influence: Doing good on “Late-Majority” and “Laggards”

4. Divisibility

17 is a free application and everyone can give it a try without limitation and restriction
Influence: Doing good on “Laggards”
5. Communicability

Obviously good enough for communication, streamer can interact with audience via chat-room
Users can share their old streaming video to other social network platform such as Facebook and Instagram, in order to seek for more viewers and new users
Influence: Doing good on “Laggards”

Innovativeness of “17”
1. Innovators (2.5%)

The “Consumption Pioneers”
Artists in Taiwan and developers related
eg. Jeffrey Hung and his friends
Start this trend and promote via the entertainment industry
2.Early-Adopters (13.5%)

Artists and Youtubers in Hong Kong and China
eg. Chrissie Chau, Kwan Gor, Ming jai, Master Szeto, etc
Streaming their daily life and interact with the audience (their fans)
Aim to catch the attention of their fans
3. Early-Majority (34%)

Communities leaders via friendzone
eg. BJC student who opened it own music radio channel on “17”, on-air every midnight
Construct their platform as the community leader, share the hobbies and interests to the community
Influence their friends and yet the community start using this app

4. Late-Majority (34%)

Young-adult and teenagers
eg. Everyone of us in this lecture room
Watch their idol and community leaders’ streamings via the app
Then, start using it and share their own things to their friends
Look for followers on the social platform
Aim to follow the trend and earn money via streaming
5. Laggards (16%)

Adult and the society
eg. Those who seldom use social network platform such as Facebook, Instagram and Snapchat
Try to connect to the main trend of the society and see what is happening, and use it as usual
Example: Your parents add you on Facebook few years later after your registration of account
Stages in adopting “17”
(in perspective as an Early-Adopter)
1. Awareness

“Consumer know a new product is coming soon. They do not have information about the new product.”
By the time Jeffrey Hung share his app via the entertainment industry, many artists know their is a new app yet do not know how it works

2. Interest
“Consumer is interested in the new product and seek for information.”
Those artist who are interested in “17” then looked for information by asking Jeffrey Hung directly, or some may search it on market such as Google Play
They obtained the information of this application afterwards
3. Evaluation

“Consumer evaluate the product by others’ feedbacks or recommendation.They compare the new product with the existing product.”
They may found that 17 is a combination of Instagram and Periscope
Look for the feedbacks from Jeffrey’s friends and those “consumption pioneers”
4. Trial

“Consumer try the new product.”
Those artist download the application and give it a try
They start streaming with this application and share to Facebook and Instagram in order to obtain audience from via their own supporters and followers (their fans)
5. Adoption

“Consumer decide whether they buy it or not.”
(In this case, as 17 is a free application, take the action of “purchasing” as “continue using it frequently”)
Artist start their stream frequently and generate profit and “LIKE” by doing so
The action of the “Early-Adopters” in this case help generate the “Early-Majority” when their audience found it is fun to play with 17

Reference Page
Q&A
Kotler, P. (2012). Principles of marketing: An Asian perspective (pp. 168-170). Hong Kong: Pearson Education Asia Limited.
iPad Air 2. (n.d.). Retrieved October 1, 2015, from http://www.apple.com/hk/
Marketing Examples. (n.d.). Retrieved October 1, 2015, from http://uwmktg301.blogspot.hk/2010/01/adoption-process.html
成也情色、敗也情色》直播 app 17 從下載第一到下架只花 | TechOrange. (n.d.). Retrieved October 2, 2015, from http://buzzorange.com/techorange/2015/09/29/17-bye/
Discussion Questions
1. State the 5 characteristics of "17". (Relative advantage, Compatibility,
Complexity, Divisibility, Communicability)

2. Analysis the Innovativeness of “17”. ( Innovator, Early-Adopters, Early-Majority, Late-Majority, Laggards)

3. What is the Stages in adopting “17”
(in perspective as an Early-Adopter) ?
Answer
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