BUSINESS ADOPTION

DEFINITION:
It is a cognitive process through which all the consumers pass before actually purchasing
the product. It is divided into 5 stages of adoption.

STAGES IN THE ADOPTION PROCESS:

Awareness:
When the potential consumers are apprised of the product but do not have a detailed
knowledge about it.
Interest:
When the product catches the consumers attention and she herself tries to discover more
and more about it.
Evaluation:
In this stage, the consumer has enough knowledge about the product and she considers its
relative benefits and evaluates it in terms of various factors as cost, aesthetics, competitors
offering, etc.
Trial:
This is the stage when the consumer experiences the product and judges whether the
claims are correct or not. Trials can be generated by sampling or by the consumer herself buying
the product. Many new brands aim to reach this stage as soon as possible.

Adoption or Rejection decision:

This is the stage when the consumer has made up her mind whether to remain with the
product or switch back to her earlier product.

BUSINESS PROCESS LIFE CYCLE:

Define

Model

Simulate

Activate

Execute

Monitor

Analyze

optimize

BUSINESS ADOPTION CURVE:

The adoption curve provides a useful way to break down customers in five segment. They are

Innovators,

Early adopters

Early majority

Late majority

Laggards.

Innovators:
Innovators are the first to adopt new products and services. They are technology freaks
par excellence, and like experimenting and playing around to find out what they can do with
their new toys. Innovators typically represent a few percent of the target user base.
Early adopters:
Early adopters also invest early on in new technologies, not as technologists, but to
address their concrete problems.

They typically represent about 10% of the target population.

In companies, early adopters are opinion influencers. Often they will not be decision
makers themselves, but are key to convince others. Early adopters are usually at the centre
of extensive communication networks, for instance internal management circles, industry

for a, or are very sociable individuals in their private sphere.

When a critical mass of early adopters has developed, the process of technology diffusion
becomes self-sustaining and like a snow-ball effect, it spills over to the early majority. On
the other hand, competing and incompatible standards slow down the rate of adoption and

the transition from early adopters to the early majority.

Three phases of early adoption. They are:
Investigation

 Rollout and Reporting

Evangelism
The early majority:
Early majority is happy to wait and see until a main stream of users and technical
standards have materialized under the influence of the early adopters. Only then are they ready to
invest in innovation to satisfy concrete needs.

They typically represent 40% of the target market. In corporate life, these are decision
makers who need to be convinced by references before they allocate budget.
The early adopters and early majority usually have higher socioeconomic status than later

adopters. Being financially better-off than late adopters, buying pricey technology early is
less risky to them. Studies have also shown that the early adoption of innovation tends to
strengthen their economic position and widen the gaps between the higher and lower
individual in a system. Paradoxically, the individuals who adopt first generally need the
benefits of the innovation comparatively less than later adopters.
The late majority:
Late majority has similar characteristics and expectation as the early majority, except that
they are risk averse and uncertain about their ability to master innovation.

As a consequence, they prefer to wait until products have been further developed and
designed for the mass market, and provide an increased level of user-friendliness
compared to previous generations.
The late majority is made of followers and represents 30%- 40% of the target market.

Laggards:
Laggards are technology averse and resistant to change. If they buy technology at all it is
because the technology has become so pervasive that they have little choice not to use it. As a
market, they are usually of limited interest to technology sellers as they require low price, a lot of
support and their profitability is the lowest. Laggards amount to about 10% of a total market.
Business adoption models:

Business logic
Enabling technology
Experimental learning

E-business adoption steps:

Messaging
Marketing and stock availability checks

Online ordering
Online payment
Monitoring order progress

Technology adoption life cycle

ITERATIVE ADOPTION PROCESS:

Integrate
Customize
Ground rules
Engage and motivate
Train and Mentor
Measure and review

BUYER DECISION PROCESS:

Need Recognition
Information Search
Evaluation of alternatives
Purchase decision
Postpurhase behaviour