1. How a consumer becomes a customer Presenting By: Manish Sharma Vivek Singh Customer Adoption ProcessDiffusion of Innovation &Situational Influences

3. An innovation?

6. The innovation, to spread and be adopted should show: The characteristics which determine an innovation's rate of adoption.

7. For example, consider the characteristics of HDTV (High-definition television) in relation to the rate of adoption.

8. Relative advantage (superior to existing products)

9. Compatibility (fits the values and experiences of potential customers)

10. Complexity (difficult to understand or use)

11. Divisibility (tried on a limited basis but still very expensive)

13. Compatibility – degree to which the product is consistent with existing values and past experience of the adopters

14. Complexity – degree to which an innovation is perceived as difficult to understand and use

15. Trialability – the ability to make trials easy for new products without economic risk to the consumer

17. Dynamically continuous – may involve the creation of either a new product or the alteration of an existing one ,but does not generally alter established patterns of customer buying and product use

19. Mass media channels - effective in creating knowledge of innovations

20. Interpersonal channels - effective in forming and changing attitudes toward a new idea

21. Influences the decision to adopt or reject a new idea.

22. Most individuals evaluate an innovation, not on the basis of scientific research by experts,

25. The spread of an innovation from its source to the ultimate consumer.

26. A macro process that focuses on external forces on the consumer (change agents, channels of information, types of information).

28. It was first described by Bourne (1959), so it has stood the test of time and remained an important marketing tool ever since.

30. Categories 12

32. Early adopters – 13%

33. Early majority – 34%

34. Late majority – 34%

36. To be the first to own new products, well before the average consumer.

37. They are often not taken seriously by their peers.

40. They stand back and watch the experiences of others.

42. They are slower to catch on to the popularity of new products, services, ideas, or solutions.

46. Purchase situation

47. Usage situation

50. Your favorite team just lost the most important game of the year

51. Your roommates watch only comedy programs

52. You have the flu

54. Marketers must understand the purchase situations in order to develop market strategies to enhance purchases of their product.

56. You are in a very bad mood

57. A good friend says “That stuff is bad for you”

58. The store you are in does no carry your brand

59. There is a long line at the checkout stand when you enter the store

61. Using this knowledge, marketers can communicate how their products can create consumer satisfaction in each relevant usage situation.

63. Friday afternoon after your last final exam

64. With your parents for lunch

65. After dinner on a cold snowy evening

66. At dinner with a friend you have not seen in several years

68. The disposition situation can create significant social problems as well as opportunities for marketers

70. You have finished a drink at a mall and there is a trash can nearby but no recycle. What do you do?

73. Atmospherics influences consumer judgments of the quality of the store and the store’s image.

75. Interior decor

76. Music

77. Smell/aromas

78. Temperature (air-conditioning or heating)

80. Certain colors and color characteristics create feelings of excitement and arousal which are related to attention.

81. Brighter colors are more arousing than dull ones.

82. Warm colors such as reds and yellows are more arousing than cool colors such as blues and grays.

84. Music influences consumers moods and in turn, influences a variety of consumption behaviors.

85. Firms exist to develop music programs to meet the unique needs of specific retailers.

87. Most consumers find feelings of crowding to be unpleasant resulting in:

88. Less time in the store and less buying

89. Faster decisions and less use of information

90. Crowding can lead to less satisfactory purchases, unpleasant shopping, and reduced likelihood of returning to the store.

92. Social influence is a significant force.

93. Individuals tend to comply with group expectations, particularly when the behavior is visible.

94. Shopping is a highly visible activity.

96. Certain products are more embarrassing than others, and

97. Embarrassment is driven by the presence of others.

98. For extremely sensitive products, strategies include home delivery options.

100. Queues and crowding.

101. Whether the consumer is likely to be known by others/ recognized.

102. Whether there are high-profile people/celebrities shopping at that store.

104. Limited purchase time often limits search

105. Internet shopping is growing rapidly as a result of the time pressures felt by consumers.

107. Whether the product is urgently required (snack between lectures)

108. Time available for shopping limited/excess (the product may be an excuse for shopping)

110. Major distinction between purchases for self versus gift.

111. Consumers give gifts for many reasons:

112. Social expectations

114. Is it a gift or for oneself?

116. Moods tend to be less intense than emotions and may operate without the individual’s awareness.

117. Although moods may affect all aspects of a person’s behavior, they generally do not completely interrupt ongoing behavior as an emotion might.

119. As with moods, individuals attempt to manage their momentary conditions, often through the purchase or consumption of products and services.

120. Thus, a great deal of marketing activity is directed toward momentary conditions

122. Feeling sad triggers buying sweets or seeing a funny movie

123. Feeling rejected triggers buying games software

124. Momentary conditions

125. Can’t eat ice cream because teeth hurt

126. Can’t buy a book because the credit card was left at home