Correlation between brand longevity and the diffusion of innovations theory (0)

Tallinn University
Alina Leopard
Correlation between brand longevity and the diffusion of innovations theory
An analysis
Lecturer : Karin Luiga
Tallinn
2017
Introduction
In developing environments (i.e. countries) the diffusion – aka adoption – of innovations takes always longer. This is for the reason that ’ignorance is the worst judge’ – as my partner loves to say. When people are not that highly educated or developed in critical and objective thinking , they find hard to take in new information.
The goal of the diffusion model is basically to represent the level of adoption of an innovation in time.
Diffusion of Innovations Theory – the basics
The DOI theory has been generated or analysed for already more than 100 years . It was made known by Everett M. Rogers in 1960s . According to Rogers (1983, p. 6), ‘Diffusion is a kind of social change , defined as the process by which alteration occurs in the structure and function of a social system. The elements of the diffusion:

• The innovation – a new object or idea , not necessary objectively new, but perceived new to one society.
  
• Communication through channels – essence of the process is the information exchange, done through several channels/ in several ways.
  
• Members of social system/ network – inseparable aspect as without members there is no communication. The transfer of ideas is easier in homogenous groups (same language etc). (Also, the norms and values of the system – culture i.e. – can inhibit the diffusion.)
  
• Period – as change always takes times, it is natural that period in time is one of the elements.
  

Adopter Categories – exemplified with iPhones & Estonians
Innovators – always want to be first with new things, more well off so they have the means to do it. (Someone who would travel to US in order to get the newest iPhone before everyone else )
Early adopters – the first bigger group who might take on the change quite early, not desperately early though. (Those guys who buy the phone from Estonia as soon as it hits the market ).
Early majority – they decide that the innovation is good , after getting an OK from the innovators & early adopters (early adopters often include opinion leaders). (Those would be the middle class people who get the idea of quality of the iPhone through previous groups.)
Late majority – in many general articles the early and late majority are not differentiated, rather called just ‘majority’. So the late ones just are on the later end of the majority.
Laggards – they are the very last ones who go with the change. Usually just because that everything else around them has changed and thus, they need to conform in order to fit. (The people who still have the phones with buttons or even the old wheel -dial phones at home.)
‘Innovation spreads when others either observe the early adopters and imitate them to replicate their profits or communicate with early adopters and are persuaded or induced to adopt.’ Markus (1987 p. 494).
Important parts of the innovation life cycle :
Opinion leaders – someone who is able to influence other individuals; earned and maintained by technical competence or social accessibility.
Change agents /agencies – individuals/companies that influence the publics innovation decisions in the direction they (or their customers) wish .
Stages of adoption
Sequential stages of how the adoption decision is reached.

Knowledge – aka awareness, usually communicated through mass media

Persuasion – the individual is to be convinced by seeing others using it and seeing their problems being solved

Decision – the innovation is either adopted or rejected. If rejected, it could be adopted at a later time.
Modern use of DOI
‘Underlying the DOI theory is that, in order to secure the successful diffusion of an innovation, it must be perceived as culturally relevant and appealing to the norms of the system one wishes to diffuse it into. This aspect applies to almost every area where the fields of communication, politics , marketing and public affairs are concerned.’ (Tina Gouws and George Peter van Rheede van Oudtshoorn p. 239)
Thus, a lot of already well-known brands must change their message or visual in order to fit to the current time.
What every company is looking for is repeat -buy or longevity of business. This also can be paralleled with brand loyalty, which is nurtured through three constituents of the brands: insiders, followers and feeders. Those stakeholders are part of creating the myth of the brand, following it and serving it up (to others).
Followers are the base – they find the creates value in the myth and identify themselves with it (and with whatever the brand sells).
Insiders make the brand seem more legitimate and add credibility. They don’t create revenue straight -forward, however . They define whether the brand really has appeal.
If enough of people connect deeply to the brands myth, a magnet effect is created, bringing more people to the fidelity circle. Feeders use the brand as vehicle, to build social solidarity with their acquaintances.
DOI theory: Practice and Application in Branding products & Services
Branding is pretty much creating or changing perception of the product, in order to influence the favourability towards adoption by the customer segment or mass market. In this article the concept of product brand is used, and differentiated between two categories:
Fast moving consumer goods (FMCG) – they could add to social value, but rather fulfil a definite purpose.
Decisions on these kinds of brands are done rather quickly. The decision to even buy something in that product category is a simple need. The products don’t also differ too much from each other. In branding, it is thus essential to portray the relative advantages in a direct way.
High-involvement products – things that portray social symbolism and status .
These products are more expensive , they depict social class and are leveraged for acceptance to those classes . There is uncertainty and risk involved in this buy. There is often post buy regret and rationalisation for the reason of that buy.
To reduce the risk, the difference with competition needs to be delivered to the customer. The brand has to be portrayed unique and therefore has to be perceived more valuable (as it is more expensive).
The communicators of brands must here be cautious of consumers’ perspectives to address all uncertainties in the right way.
The author stresses that ‘the diffusion of an innovation is mostly reliant on the social acceptance of a collective social system and only partly on the change agent ’s or communication manager’s initial awareness– creation campaigns .’
Conclusion
Brands have an ever-changing challenge od keeping the popularity . The key here is to be pro- active : to try to change the consumer’s way of thinking and tastes, instead of trying to understand their psychology after they already made a decision.
The DOI theory is important in several areas of communication-connected disciplines. It is especially useful in developing areas – Estonia, in some ways, could be counted among them.