Explain the diffusion process through which new products are adopted. The diffusion process is the spread of a new product from its producer to ultimate adopters. Adopters in the diffusion process belong to five categories: innovators, early adopters, the early majority, the late majority, and laggards. Product characteristics that affect the rate of adoption include product complexity, compatibility with existing social values, relative advantage over existing substitutes, observability, and "trialability." The diffusion process is facilitated by word-of-mouth communication and communication from marketers to consumers.
1. Describe some products whose adoption rates have been affected by complexity, compatibility, relative advantage, observability, and/or "trialability."
2. What type of adopter behavior do you typically follow? Explain.
3. Analyze each product on the graph according to the characteristics that influence the rate of adoption. For example, what can you conclude from the data about the relative advantage of DVD audio? Write one to two pages explaining your analysis.