Diffusion Of Innovation Model

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LEARNING JOURNAL UNIT 3 How does the product life cycle relate to stages in the diffusion of innovation model? Is there an overlap or relationship between the two? First, product life cycle is defined as the stages of an offering ranging from introduction, growth, maturity, decline stage. (Tanner & Raymond, 2010).While diffusion of innovation model is defined as the “Theory that every market has groups of customers who differ in their readiness and willingness to adopt a new product. And, that an innovative product spreads through a market not in one straight course but in successive, overlapping waves.” (Diffusion of Innovation, 2013). Now, with these two definitions, it is easier to understand and relate product life cycle with the diffusion…show more content…
The stage a product encounters in the product life cycle seems to be the very same stage that occurs in the diffusion of innovation model. For instance, a product goes through four stages before it finally phases out and in each stage of the product life cycle, the relationship with the diffusion of innovation model tends to be stronger. The product life cycle introduction stage where the product is finally introduced to the market can easily be related to early adopters in the diffusion of innovation model where only innovators and early adopters try to own or purchase a product. It is quite noticeable how in the introduction stage, an organization tries to create an awareness of the product in the mind of consumers, therefore, making them innovate and adopt the new product introduced into the market. So it is apparent that the product life cycle introduction stage relates to the diffusion of innovation model innovators and early adopters…show more content…
Now during this period of time, some consumers who have been very skeptical of the product would begin to make purchases because the price is drastically reduced, and probably the product may wheel out of the market. This stage of the product life cycle relate very well with the laggards stage in the diffusion of innovation model where these sets of people are more risk avoider who will only make purchases when the product prove it claims and effects. The laggards are typically the last consumers that will try a product and services during the decline stage. In conclusion, the product life cycle and the diffusion of innovation model as some will argue that they overlap each other, but in my perspective, is not an overlap per se but there is a strong relationship between the two. However one view the two, they point the entrepreneur towards all the stages of a product.

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