Page 206 - DMGT506_CONSUMER_BEHAVIOUR

Unit 14: Opinion Leadership and Diffusion of Innovation

14.3 Summary Notes

Opinion leaders are those people who, in a given situation, are able to exert personal
influence through word-of-mouth because others seek advice or information. Opinion
leaders can informally influence the behaviour of consumers toward products or services,
either positively or negatively.

The diffusion process refers to the manner in which innovations spread over time to other
consumers through communications across a market. Innovators adopt the product in its
introductory phase of life cycle; early adopters during growth phase; early and late majority
during its maturity period, and laggards are the last to adopt the product. These life cycle
phases are important because they are linked to different marketing strategies during the
product life cycle.

14.4 Keywords

Continuous innovation: modest, gradational, ongoing upgrades or enhancements of existing
technologies or products
Diffusion of innovation: describes the manner in which a product is disseminated in the
marketplace
Discontinuous innovation: technological, product or service innovation in an industry or market
that requires end-users to change behavior
Innovators: Those who adopt a product earliest
Laggards: Are the last ones to adopt a product
Opinion leaders: Those who can exert personal influence in certain situations

14.5 Self Assessment

Fill in the blanks:

1. You are likely to follow the advice given by opinion leader (Designer) Manish Malhotra
if you are looking to buy ………………...
2. …………………… adopt a product when it is in its maturity stage but more towards
decline.
3. Mobile phones come in the category of………………innovations.
4. Colour Television is a …………….innovation.

5. DVD players nowadays come with a USB port. This is a……………innovation.
7. You will seek help of an opinion leader when your involvement in purchase decision is
.......................
8. You buy a cell phone on the day of its launch. You are an .......................

9. ....................... are most likely to be opinion leaders and influence others.
10. Online shopping and tele-shopping do save time but still many don't like to shop on web
or on phone. This is to ....................... barrier.

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