Lesson 1, Topic 1
In Progress

The Buyer Decision Process for New Products

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Before going to the buyer decision, we have to know what new product is. New product is a good, service or idea that is perceived by some potential customer as new.Now we discuss the buyer decision process for new products.

Stage in the adoption process:

Adoption process is the mental process through which an indicate the buyer decision process for new product individual passes first hearing about an innovation to final adoption.

Consumers go through five stages in the process of adopting a new product. This are-

  • Awareness: The consumer becomes aware of information about it.
  • Interest: The consumer considers whether trying the new products make sense.
  • Evaluation: The consumer considers whether trying the new product make sense.
  • Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value.
  • Adoption: The consumer decides to make full and regular use of the new product.

Individual differences in innovativeness:

People differ greatly in their readiness to try new products. People can be classified into five adopter categories. They are discussed below:

  • Innovators: Innovators are venture some. They try new products at some risk.
  • Early Adopters: Early adopters are guided by respect. They are opinion leaders in their communities and adopt new product early but carefully.
  • Early Majority: Early majority are deliberating. Although they are rarely leaders. They adopt new product before the average person.
  • Late Majority: Late majority are sceptical. They adopt an innovation only after amajority of people have tried it.
  • Laggards: Laggards are tradition bound. They suspicious only when it has becomesomething of a tradition itself.

Influence of product characteristics on rate of adoption:

Five characteristics are important in influencing an innovation’s rate of adoption. They are discussed below:

  1. Relative Advantage: Relative advantage is the degree to which the innovation appears superior to existing products.
  2. Compatibility: Compatibility is the degree to which the innovation fits the values and experiences of potential consumers.
  3. Complexity: Complexity is the degree to which the innovation is difficult to understand or use.
  4. Divisibility: Divisibility is the degree to which the innovation may be tried on a limited basis.
  5. Communicability: Communicability is the degree to which the result of using the innovation can be observed or described to others.

The new product marketer has to research all these factors when developing the new product and its marketing program.