Answer to Question #296642 in Marketing for zeki

Question

The characterstics of a new product affect it's rate of adoption. Identify the 5 characterstics the rate of adoption and describe how each factor will influence the rate of adoption of the Apple watch.

Answer 1

n particular, 5 characteristics are especially important in influencing an innovation's rate of adoption:

Relative Advantage. The relative advantage refers to the degree to which an innovation appears superior to existing products.

Compatibility. Compatibility is the degree to which an innovation fits the values and experiences of potential consumers. It belongs to the product characteristics that influence the adoption rate because consumers will only slowly start adopting a product if it is not compatible with their mindset. HDTV, for example, is highly compatible with the lifestyles of the TV-watching public. However, in the early years, HDTV was not yet compatible with programming and broadcasting systems, which slowed adoption. Similarly, you would not buy a battery-driven car if there were no chargers available to charge it. Likewise, you will not buy such a car if the battery range is 100km but your way to work is 150km per day – it simply does not fit your life. Now, as more and more high-definition programs and channels are available, the rate of HDTV adoption has increased rapidly.

Complexity. The degree to which an innovation is difficult to understand or to use is also one of the product characteristics that influence the adoption rate. HDTVs are not very complex. Therefore, as more programming has become available and prices have fallen, the rate of HDTV adoption is increasing faster than that of more complex innovations.

Divisibility. Divisibility refers to the degree to which an innovation may be tried on a limited basis. Would you buy an expensive innovative new car without having the opportunity to test it before? Early HDTVs and HD cable and satellite systems were very expensive, which slowed the rate of adoption. As prices fall, adoption rates increase.

Communicability. Even if all other product characteristics that influence the adoption rate are favorable, communicability can still slow down adoption significantly. Communicability is the degree to which the results of using innovation can be observed or described to others. Because HDTV lends itself to demonstration and description, its use has spread faster among consumers.