Core Course Innovation Session 3 PPT 3b

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RCM Corinne Grenier 1
INNOVATION STRATEGY OF 
COMPETITIVE COMPANIES AND 
ENTREPRENEURSHIP
Track Three : Diffusion of innovations
PPT 3b : The basic model of Rogers
Professeur RCM : Corinne Grenier
Main ideas – Innovation diffusion
 The model of innovation diffusion helps to answer the following 
question: How time needed to reach the expected market? 
 The spread of the diffusion mainly depends on some characteristics of 
the product.
Year of adoption
M
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20
40
60
80
1968 1970 1972 1974 1976 1978 1980
Diffusion curve of color TV in the UK
Illustration 
RCM : Corinne Grenier
Questions:
 How to explain the form of diffusion of innovation?
 How to explain diffusion through time? 
 How to explain that 30 years have been required to reach all 
the market? 
The Rogers 
Model
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The Rogers’ model of innovation diffusion
At the basis of the Rogers 'model: a famous controversy between economic or sociological 
explanation to explain the spread of innovation into markets through time (and not the 
volume of sales)
 For the economic scholarships: the spread of innovation sales depends on economic variables 
such as Price, importance of the Channel network, Growth revenue..
 For the sociological scholarships: sales of innovation depends on the social relationships 
between consumers and not-yet consumers (diffusion of information)
This expression of the controversy:
 For the economic scholarships: on the long term, sociological variables are becoming less and 
less important
For the sociological scholarships: the consumer is never a 100% homo economicus : his 
behavior depends also on social influence and information networks
RCM : Corinne Grenier 5
The Rogers’ model of innovation diffusion
The resolution of the controversy:
A very huge scientific study on the spread of corn seed on the American market (sponsored by 
Monsanto) in the 50s. and conducted by Rogers and his team.
 The theory of innovation diffusion : 
. « Diffusion is the process by which innovation is spreading through some 
communication channels, through time and among the members of a given social system” 
(Rogers 1955)
. Diffusion as “the process through which an individual passes from gaining initial 
knowledge of an innovation, to forming an attitude toward the innovation, to making a 
decision to adopt or reject, to implementation of the new idea, and to confirmation of this 
decision” (Rogers, 2003)
 The two main lessons of the Rogers 'model: 
. Diffusion is done through interpersonal relationships (learning by imitation and 
information circulation among groups of consumers)
. Intrinsic qualities of the product modify the shape of the adoption curve
RCM : Corinne Grenier 6
The Rogers’ model 
Innovators
2,5%
Early 
adopters 
13,5%
Early majority 
34%
Late majority 
34%
Laggards 16%
The Rogers’ model of innovation diffusion
How to interpret the model?
. In the model, the innovators always represent the first 2.5% consumers of the products, the 
early adopters the first 13.5% consumers etc… But it is the time needed to reach the first 2.5% 
of sales, then the additional 13.5% of sales and etc… that is explained by the Rogers ‘model.
RCM : Corinne Grenier 7
Who are the ones who adopt innovation through time? The five categories of adopters in the 
Rogers ‘model :
. Innovators : brave people, pulling change. Innovators are very important communication among 
other people 
. Early adopters : try out new ideas but in a careful way
. Early majority : thoughtful people, careful but accepting change more quickly than the average
. Late majority : skeptic people, will use new ideas or products only when the majority is using it
. Laggards : traditional people, caring for the “old ways”, are critical towards new ideas and will 
only accept if the new idea has become mainstream or even tradition
The Rogers’ model of innovation diffusion
Compulsory reading
 Julian and al. (2004), “An Investigation of the Diffusion of Online Games in Taiwan: An 
Application of Roger’s Diffusion of Innovation Theory”, The Journal of American Academy of 
Business, Sept., p. 439-445
Illustration 
RCM : Corinne Grenier
The Rogers’ model of innovation diffusion
How the Rogers 'model works: the 5 attributes of the products that are thought to 
influence the rate of adoption of innovations: 
♦ Relative advantage is the degree to which an innovation is perceived as being better 
than the idea it supersedes.
♦ Compatibility is the degree to which an innovation is perceived as consistent with the 
existing values, past experiences, and needs of potential adopters.
♦ Complexity is the degree to which an innovation is perceived as relatively difficult to 
understand and use.
♦ Trialability is the degree to which an innovation may be experimented with on a limited 
basis.
♦ Observability is the degree to which the results of an innovation are visible to others.
RCM : Corinne Grenier 9
Independant variables
. Perceived attributes of the product 
- relative advantage 
- compatibility
- complexity
- triability 
- observability
. Kind of decision 
- individual 
- collective 
- constrained 
. Communication channels 
- mass media or individual channels
. Kind of the social system 
(norms, networks ....)
. Promotion efforts
Explained variable
Velocity of innovation 
adoption
The Rogers’ model of innovation diffusion
How the Rogers’ model works? The 
integrative model 
RCM : Corinne Grenier 10
The Rogers’ model of innovation diffusion
Compulsory Readings
 Rogers E. (1976), “New Product Adoption and Diffusion”, Journal of Consumer 
Research, Vol 2/March, p. 290-301
See Videos
. Diffusion of Innovation: A Theory 
. Roger's Diffusion of Innovation 
Other non compulsory readings 
 Sahin I. and Thompson A. (2006), “Using Rogers’ Theory to Interpret
Instructional Computer Use by COE Faculty”, Journal of Research on Technology in 
Education, Vol 39/Fall, p. 81-104