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Consumer Behaviour

Notes likely to be much higher with the use of a new product. Certain types of products or services are
difficult, or even impossible, to try on a sufficient basis such as electric cars or laser eye surgery.
Post purchase evaluation is likely to have important implications because of the expenses involved
or the complexity of many products and the rapid changes in technology. For example, if many
adopters had discontinued the use of personal computers after their first purchase as a result of
unfavourable post purchase evaluation, the market for PCs would be shrinking instead of
expanding rapidly. As a result of favourable evaluation, many of the PC adopters have either
upgraded their old machines or discarded their original machines and bought third or fourth
generation computers.
The outcome of consumers’ decision process can be adoption or rejection of the product. Many
consumers’ evaluation of cellular phones has led them to reject this wonderful product because
they consider the convenience of keeping a cellular phone is not worth the expense involved.

Example: Apple Computers introduced their Cube, which was believed to be something
unique in computer design. However, the company discontinued the model because of consumers’
rejection of the product. When Apple introduced their range of iMacs, another breakthrough in
computer design, consumer response was overwhelming.
14.2.3 Factors Affecting the Diffusion of Innovation

The chances of a product’s adoption and subsequent diffusion are largely dependent on its
nature. The rate at which the diffusion of an innovation takes place is a function of the following
ten factors:
1. Type of Target Group: The target market for the new product is an important factor in
influencing the rate of diffusion. Some groups are more inclined to accept change than
others. In general, affluent, young and highly educated groups tend to try and accept new
products readily.
2. Number of People Involved in Decision Making: This refers to whether the decision is
made by an individual or a group. If fewer individuals are involved in making the purchase
decision, the innovation is likely to spread more rapidly. When two or more family
members are involved in making the purchase decision, the diffusion will be slower than
innovations that primarily affect one individual.
3. Extent of Marketing Efforts Involved: The diffusion of innovation is very significantly
influenced by the extent of marketing efforts undertaken. No matter how wonderful an
innovation, but unless sufficient numbers are informed and convinced of what it can do
for them, the diffusion would be adversely affected. Thus, the rate of diffusion is not
completely beyond the control of the marketer.
4. Need Fulfilment: The more involving and obvious the need that the innovation satisfies,
the faster the diffusion. The rate of diffusion of antidandruff shampoos has been fast as
they gained rapid trial among those who were uncomfortable with dandruff. Viagra, the
male impotency drug gained rapid trial and its diffusion has been very fast. Rogaine,
believed to be a cure for certain types of hair loss or baldness, gained rapid trial among
those who felt uncomfortable with their hair loss problem.
5. Compatibility: This refers to the degree to which the innovation is consistent with the
individual’s and group’s needs, attitudes, beliefs and past experiences. The more its
consistency, the faster its diffusion. Microwave oven was introduced about three decades
back in India but since it was not compatible with Indian family values, its diffusion has
been rather slow. Internet banking or shopping is not consistent with established habits of
most Indian consumers, resulting in very slow diffusion of this innovation.

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