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Consumer Behaviour




                    Notes          14.2.7 Role of Communication in the Diffusion Process

                                   In the definition of diffusion process we saw that communication is a key element that influences
                                   diffusion across markets. Consumers rely on marketer controlled mass media advertising for
                                   information about new product introductions. Advertising campaigns are designed to  create
                                   awareness among potential consumers and communicate relevant information about features
                                   and benefits. H David Strutton and James R Lumpkin studied the adoption of self-diagnostic
                                   medical devices among elderly consumers and reported that early adopters were more dependent
                                   on mass media for information. Subsequently, they show greater reliance on friends and family
                                   members  to help  them evaluate  new  products  and  word-of-mouth  influence  increases  in
                                   importance as early adopters progress from awareness to knowledge,  evaluation, trial and
                                   adoption.
                                   In the case of later adopters, word-of-mouth tends to be the most important influence throughout
                                   the adoption process. They learn about innovations from friends and neighbours rather than the
                                   mass media. To create awareness among early adopters, the role of  mass media advertising
                                   providing informational content is more important in the process of diffusion. For later adopters,
                                   advertisers can try to encourage favourable word-of-mouth by using influential spokespersons.

                                   Word-of-mouth Influence Across Groups

                                   For diffusion to occur across groups, positive word-of-mouth must first start within groups.
                                   However, favourable word-of-mouth within just groups is not sufficient for diffusion to occur
                                   but requires the spread  of information  across different groups. This  does happen  because
                                   consumers spread information by interacting with individuals outside their own groups.
                                   Groups are classified as homophilous and heterophilous. Individual within homophilous groups
                                   are likely to be similar and are bound by stronger reference group ties such as family and peer
                                   group. Individuals within heterophilous groups tend to be dissimilar and ties that hold them
                                   together are weak, such as work associates at higher or lower levels in an organisational hierarchy
                                   or acquaintances with whom the consumer has only occasional contact. Some word-of-mouth
                                   communication about new products or ideas occurs between acquaintances in heterophilous
                                   groups and is often referred to as the strength of weak ties, because the weak ties of such groups
                                   ate strong enough to stimulate the process of diffusion. A study by Jacqueline Johnson Brown
                                   and Peter H Reingen found that most word-of-mouth occurred in homophilous groups (between
                                   friend and relatives), while among heterophilous groups, word-of-mouth occurred in only 18%
                                   of communications among individuals.

                                   14.2.8 Cultural Context and Diffusion of Innovation


                                   Culture may have an important influence  on the diffusion of innovation.  Two concepts  are
                                   worth considering in this regard: cultural context and cultural homogeneity.
                                   Low-context cultures are those  that rely  primarily on  verbal and written communication in
                                   transmitting meaning. They place more value on individual initiative and rely more on mass
                                   media for communication. The concept of heterophilous groups can be applied to low-context
                                   cultures which  are more disparate with wider differences among groups. United States and
                                   Western Europe would be described as low-context/heterophilous cultures.
                                   High-context cultures  rely primarily on non-verbal communication, with little difference in
                                   norms,  values  and  socio-economic  status  among  groups.  The  emphasis  on  non-verbal
                                   communication means that such cultures will place more value on interpersonal contacts and
                                   associations. In high-context cultures more value is placed on group than on the individual and
                                   the emphasis is on subscribing to the norms and long-standing rituals of society. Most of the Far
                                   Eastern countries would qualify as high-context/homophilous cultures.



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