Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example.
Student answers will vary. Five characteristics influence an innovation's rate of adoption. We consider them for digital video recorders (DVRs) for home use, as exemplified by TiVo.
1. Relative advantage — the degree to which the innovation appears superior to existing products. The greater the perceived relative advantage of using a DVR, say, for easily recording favorite shows, pausing live TV, or skipping commercials, the more quickly it was adopted.
2. Compatibility — the degree to which the innovation matches consumers' values and experiences. DVRs are highly compatible with the preferences of avid television watchers.
3. Complexity — the degree to which the innovation is difficult to understand or use. DVRs are somewhat complex and therefore took slightly longer to penetrate into home use.
4. Divisibility — the degree to which the innovation can be tried on a limited basis. This provided a sizable challenge for DVRs — sampling could occur only in a retail store or perhaps a friend's house.
5. Communicability — the degree to which the benefits of use are observable or describable to others. The fact that DVRs have some clear advantages helped create interest and curiosity.
Other characteristics that influence the rate of adoption are cost, risk and uncertainty, scientific credibility, and social approval.