Models for diffusion of innovations among potential adopters have been recently used to study the life cycle of new products and to forecast first-purchase sales. Those models are useful for managers as decision aids to create and perform strategies to maintain the profitability of new products across their life cycle. Bass (1969) pioneered this area of research with a model for diffusions of new products under peer pressure via word-of-mouth. This model distinguished two parameters: innovation and imitation. Later, Chatterjee and Eliashberg (1990) provided a microeconomic version of Bass’s model that included interactions among potential adopters and the formation of beliefs.
In Chatterjee and Eliashberg’s model, potential adopters were risk averse and used the price and their perceptions about the innovation’s performance as inputs for utility functions. Thus, with Bayesian methods, potential adopters updated parameters with information from past adopters. Our model also focuses on informational influence on adoption of new products. However, we modified Chatterjee and Eliashberg’s model of beliefs formation and individual choice by taking into account the possibility that influences take place only among consumers who are connected in a social network.
The objective of this article is twofold. First, we seek to determine how global parameters of the social network, such as average path length and clustering, affect diffusion processes. Second, we attempt to identify early
Word-of-mouth is the major factor to help people make decisions on buying high-involvement products (Gu, Park, & Konana 2012, p. 182).
The Diffusion of Innovation Model is an example of a specific community-based model that recognizes and documents socio-cultural, economic, and normative values of the
The film ‘How Social Networks Predict Epidemics’ by Nicholas Christakis explores the influence of social networks on people’s lives and how it can be used to predict epidemics.Social networks are key connectors among individuals in all societies today. They are avenues through which people learn and share many new things with others. Social networks are so instrumental in determining many issues like employment and salaries, and the transmission of diseases. It is, therefore, crucial to comprehend why and how the networks influence the patterns as they do.
For any innovation, a company needs to ensure it has developed good network relationships in order to obtain support for its innovation. This is because of the generic market acceptance process. The market acceptance process starts with building relationships with the adoption networks, which should start before the innovation is launched and continue after the innovation has been commercialized. Once the product has received backing from the adoption network, early adopters will be willing to purchase the product because of the technological innovation which they would be willing to access for themselves. Once a product has been accepted by the early adopters, and they give it
I appreciate your discussion post and the interesting article you selected. I agree with you regarding the theoretical application of Precaution Adoption Process Model (PAPM) ability to get people moving from one stage to another (Glanz, Rimer, & Viswanath, 2015). PAPM adoptability to address chronic diseases is a shift to focus on the precaution to prevent or reduce illnesses. The PAPM stages are a model to help figure out what message is appropriate to meet an individual at a particular state (Glanz, Rimer, & Viswanath, 2008). As the message in PAPM has strength to cease a risky behavior by allowing the people to reconsider the importance of adopting the precaution intervention to improve their quality of life (Weinstein, Sandman, & Blalock, n.d.)
With the influence of online websites and social media, marketers are able to endorse their creation
The adoption curve illustrates that majority of people will not immediately accept a disruptive idea, it is unable to quickly convince customers to use new controversial idea. The rational process is to persuade the innovators and early adopters first, and then other categories. The categories and its proportion should be used to evaluate target groups for communication
Among them, behavioral theories are primary theories which have been used in the field of e-government to address the issues related to user adoption decisions. Behavioral theories are used by scholars to identify the behavior of people for a new innovation through general accepted principles. Extant literature reveals that different scholars have come across with behavioral theories and have labeled differently. Among them, Theory of Psychological Field (Kurt Lewin), Theory of Behavior Modification (Albrecht et al., 1987), Hohenheim Diffusion Theory (Hoffmann, 2006), Diffusion of Innovation Theory (Rogers, 2003) and the Theory of Planned Behavior (Ajzen, 1991) have used in the scientific investigations related to new innovations. However, it could be found only Diffusion of Innovation Theory and Theory of Planned Behavior have considered on the e-government adoption research field and behavioral adoption theories which are more important for the ongoing investigation are discussed lengthily in the next
The central theme in Jonah Berger’s book, Contagious: Why Things Catch On, focuses on the six important principles of STEPPS that can make a good or service circulate quickly amongst the mass public. Berger explains the reason behind why people talk about a certain product and the resulting factors. The six “ingredients,” Social Currency, Triggers, Emotion, Public, Practical Value, and Stories, “cause things to be talked about, shared, and imitated” (Berger, 2013). Basically, STEPPS create awareness of the business’s brand. For a business to spread its brand awareness, Berger teachings of using STEPPS “provides a framework and a set of specific, actionable techniques for helping information spread” (Berger, 2013).
Diffusion of Innovations is to explain how innovations are taken up in a population. An innovation is an idea, people or organizational behaviour, or objective that is perceived as new by its audience.
As humans constantly use digital media and computational devices in their daily lives, more and more digital traces are left behind. With the addition of mobile devices, the amount of data left behind has been exponentially growing. This data is essential to identify the networks that are made between people. SocioPatterns is a research collaboration that adopts a data-driven methodology with the aim of uncovering fundamental patterns in social dynamics and coordinated human activity. This is very hard for them because with the ever changing population and characteristics, technology must be evolved. To achieve its scientific goals,
According to the psychology of human beings, they tend to do what is against the norm. Hence, some people will get the chance to talk more about the products hence making more people to know about the products.
There have been several theoretical models employed to study user acceptance and usage behavior of new information technologies. The Technology Acceptance Model (TAM) (Davis, Bagozzi, & Warshaw, 1989; Davis, 1989) is the most widely applied model, which is adapted from the Theory of Reasoned Action (TRA) (Ajzen & Fishbein, 1980). TRA is one of the most influential models in social psychology (Venkatesh, Morris, Davis, & Davis, 2003), and describes that behavior is determined by the behavioral intention to perform it, which is determined by the attitude of the person and the subjective norm (Straub, 2009). TAM (figure 1) worked further on this concept and suggests two specific beliefs (perceived ease of use and perceived usefulness) that determine one’s behavioral intention to use technology (Davis, 1989). TAM further posits that perceived usefulness will be influenced by perceived ease of use, since the easier a technology is to use, the more useful it can be (Venkatesh, 2000). TAM has received extensive empirical support through validation, applications, and replications over the years which proved TAM to be robust across time, settings, populations, and technologies (Venkatesh, 2000). In this research we will limit ourselves to one of the aspects proposed by the TAM: perceived ease of use.
The perceived Relative advantage of a new product versus existing products is a major influence on the rate of adoption. If marketers create a substantial relative advantage over their competitors’ products in emerging markets, they are likely to gain quick acceptance and customers will start switching to their product.
For low-involvement products, consumers tend to pick up the product their friends recommend, which is on account of “the word of mouth” marketing effect. On the contrary, there is a weaker relationship between consumers and their friends in high-involvement products (Eszter, 2008). For instance, the selection of travel destinations for the new couple in Group 2 was relatively high-involvement process. Although they sought information from a few couples about the recommended places for their honeymoon, they finally abandoned their friends’ suggestions after evaluation and determined to go to the Maldives according to their original intention. In another case, consumers are likely to be well impacted by friends who are opinion leaders possessing substantial knowledge about the product. In Group 3, the reason why the amateur backpacker selected Tibet as his first choice was just because his friend, a professional with ten-year experience, recommended that Tibet was the best choice for greenhorns.