The consumer has to undergo the following five stages in the process of adopting a new product which is discussed as follows:
Awareness: It is the first stage in the adoption process where the customer gets to know about a new product in the market and is aware of its existence through advertisement. The customer usually does not give much attention to the product in the first stage.
Interest: In the second stage, the customer starts to show interest in the product and collects information about the same through different mediums.
Evaluation: In the evaluation stage, the customer begins to evaluate all the information collected by him. He compares its various aspects such as price, quality standard, reliability, after-sales services, etc.
Trial: The next stage is the trial stage, where the consumer is now prepared to try the product. At first, it can be carried out by trying small product samples to gain self-experience. The trial stage is very important as it is in this that the customer decides to buy or not.
Adoption: It is the final stage where if the customer is satisfied with his product experience, he/she adopts the product or buys it. The quality of the purchase and other decisions are taken up in this stage.
Product Characteristics that Influence the Adoption Rate
Relative advantage: It can be defined as the degree of advantage that a new product has over the existing product. It is one of the most important reasons that influence a customer to adopt the new product.
Compatibility: Another important feature is compatibility. The customer would take up products that meet their needs. For example, a high definition television (HDTV) will only have a high adoption rate if the high definition (HD) channels are highly available. The HDTV would be of no use to a customer if he/she cannot avail of the HD versions of different channels.
Complexity: The degree of complexity is involved in using a new product highly influences its adoption rate. The customer will not adopt the products which are very complex and hence difficult to use. On the other hand, a product simple in usage would have a higher adoption rate.
Divisibility: It is defined as the degree to which the use of a new product can be limited. The customer would not invest in an expensive purchase unless given a limited trial period. For example, it is using samples before the actual purchase of a particular product. The cosmetic industry usually distributes samples to its existing buyers at the time of launching a new product.
Communicability: Apart from the characteristics mentioned above, communicability plays a very important role in influencing the adoption rate of any product. It refers to the degree to which the experience or satisfaction is derived from consuming a new product can be described or communicated to others.
Importance of Product Adoption Process
New Item Detection: Through the adoption process, new items are identified and adopted by customers. Through innovation and acceptance, the process leads to new item detection.
Discover New Features of Existing Product: When a customer decides upon adopting or trying a new product or existing products, in the process, they often end up discovering new features of existing products. This can be in terms of multiple uses of a product.
Create Long Term User: In adopting a new product, the customer might derive such a level of satisfaction that he/she ends up being a loyal and long-term user of the product.
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