The innovator theory is a theory that analyzes how new products and services spread in the market by classifying consumers into five groups.
The innovator theory states that the key to popularization in the market is to penetrate the 16% of people who are easily receptive to new things.
This article provides an overview of innovator theory and introduces the “chasm theory,” which shows that innovator theory has its limitations.
What is innovator theory?
Innovator theory defines consumers as
This is a theory that proposes how “innovation”, which is a new product or service, spreads in the market by classifying it into five categories.
It was proposed in 1962 by Everett M. Rogers, a professor at Stanford University in the United States, in his book “The Diffusion of Innovation.”
Innovators place importance on the “newness” of products and services, but they are a small group.
Early adopters, on the other hand, are larger in number than innovators, focus on the benefits of products and services, and have the power to communicate new benefits to other consumers.
The innovator theory states that whether a new product or service can spread to early adopters in addition to innovators is the turning point in whether or not a new product or service will spread to the next early majority or late majority.
Since then, analysis of the high-tech industry has revealed that there is a large chasm between early adopters and the early majority.
This has given rise to the “chasm theory,” which emphasizes the importance of marketing strategies not only for early adopters but also for the early majority.
Five classifications of consumers according to innovation theory
Let’s take a closer look at the five categories of consumers in innovator theory.
1. innovator
In innovation theory, innovators are people who value “newness” and are said to account for 2.5% of all consumers.
We enjoy being the first to purchase innovative products.
However, since the emphasis is on the novelty itself, we do not really care about the quality of the product or its benefits.
2. Early adopters
Early adopters are sensitive to trends, actively gather information, and purchase products and services based on their own judgment.
It is said to account for 13.5% of the total market.
Early adopters buy new products and services, but not simply because they are new, as innovators do.
Focusing on the “benefits” of products and services, the criterion for purchasing decisions is whether there are new benefits.
Early adopters are also characterized by their ability to actively disseminate information and have a large influence on the early and late majority.
As a result, they are sometimes called “opinion leaders” or “influencers.”
Innovation theory states that the key to whether a new product or service will penetrate the market is whether it is accepted by early adopters.
3. Early majority (early followers)
The early majority (early followers) are people who are relatively cautious about purchasing new products and services, and are said to account for 34% of the total.
I don’t want to be behind the trends, and I adopt new things faster than average.
Because they tend to be strongly influenced by early adopters, they are sometimes called “bridge people,” who serve as a bridge to penetrate the entire market.
4. Late majority (late followers)
The late majority are people who are skeptical about new products and services, accounting for 34% of the total.
After carefully monitoring the trends around me and confirming that more than half of the people have accepted it, I finally buy it myself.
Sometimes called “followers.”
:max_bytes(150000):strip_icc()/terms_m_marketing-strategy_FINAL-86aa7d267bab450db9dbf9d04fa82eb3.jpg)
5. Laggard (retard)
Laggards are the most conservative people, accounting for 16% of the total.
They have no interest in new things at all; in fact, they don’t want to accept new things.
Sometimes translated as “traditionalist,” it is said that they do not accept new things until they become “traditional.”
What is chasm theory?
The chasm theory was proposed by Jeffrey A. Moore, an American marketing consultant, in his book “Chasm” in 1991.
As we saw above, the innovator theory states that the key to market penetration is acceptance by innovators and early adopters, who make up 16% of the market.
On the other hand, according to the chasm theory, there is a large chasm between early adopters and the early majority, and if only the early adopters are accepted, the majority of the market (early majority + late majority) proposes that there are things that cannot be accepted.
Newness is the reason why innovators and early adopters embrace new products and services.
In contrast to the “newness” factor, the chasm theory argues that for the majority, “a sense of security that a large number of people are using the product” will push them to purchase it.
Even if only 16% of people use it, it is not enough to provide peace of mind to the majority.
Even in BtoB, many companies value stability over risk.
In order for a new product or service to be accepted by the majority, it is important to emphasize its ease of use and sense of security rather than its novelty.
summary
◆ Innovation theory classifies consumers into five groups.
◆ The key to penetrating the market is acceptance by innovators and early adopters.
◆ In contrast, the chasm theory proposes that there is a “big gap” between early adopters and the majority.
◆ In order to be accepted by the majority, it is important to appeal to “ease of use” and “a sense of security.”