Business Definition for: diffusion
diffusion
process by which a new product or idea attracts the attention and interest of a market and is gradually adopted by the many individuals making up that market. Unlike individual adoption decisions, diffusion is influenced by communication about a product between an ever-widening group of consumers and is affected by the social dynamics of the group.
See also
adoption process
,
innovator
,
innovation
,
early adopter
Related Terms:
sequence of events beginning with consumer awareness of a new product leading to trial usage and culminating in full and regular use of the new product. Over time the adoption process resembles a bell curve formed by innovators, early adopters, the majority of consumers, late adopters, and laggards.
- consumer who is among the first within a market to adopt an innovation. According to the bell curve model of diffusion, innovators are the first 2.5% of the consumers in a market to adopt an innovation. An advertiser can optimize the cost effectiveness of an advertising campaign for an innovation by targeting it toward innovators and early adopters. See also adoption process.
- marketer who sells one or more product innovations.
use of a new product, service, or method in business practice immediately subsequent to its discovery.
consumer who is among the earliest within a market, after innovators, to adopt an innovation. According to the bell curve model of diffusion, early adopters are the next 13.5% of the consumers in a market, after innovators, to adopt an innovation. An advertiser can optimize the cost effectiveness of an advertising campaign for an innovation by targeting it toward innovators and early adopters.
Referring Terms:
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
