Strategy for Information Markets/Diffusion of Innovation

Overview
According to Everett M. Rogers, diffusion is “...the process by which an innovation is communicated through certain channels over time among the members of a social system. An Innovation is an idea, practice or object perceived as new by an individual or other unit of adoption. The diffusion of innovations involves both mass media and interpersonal communication channels” In otherwords, diffusion of innovations is the manner in which new practices/objects is communicated by people.

Innovations typically have an s-shaped rate of adoption. There are five different types of adopter in the whole diffusion of innovations process which are identified by how early they adopt the innovation. The five types of adopters, in order from those adopted earliest to latest, are: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. The rate of adoption between these groups follows a bell shaped standard deviation curve.

There are five stages with respect to how an individual chooses to adopt an innovation or not. The first stage takes place when the potential adopter becomes aware of the innovation. The second stage has the potential adopter projecting a positive or negative attitude towards the innovation. The third stage has the entity making a decision to adopt or not. The fourth has the adopter implementing the innovation. The last stage evaluates the innovation.