Diffusion of Innovation

The world is constantly being changed by technological updates and breakthroughs. Whether it's medical technology, appliances, or a new app, the demand increase is fast. As long as people are willing to purchase new inventions, Diffusion Theory will initiate the process of new innovation catching on and becoming outdated.

Diffusion Theory is a robust theory popularized in 1962 by Everett Rogers. The theory explains how and why and how ideas and technology spreads. People in a social system communicate innovation over time, creating a diffusion process. Diffusion Theory is broken into five parts. 1. Innovators / Pioneers 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards

Example... iPhones

Apple debuted the first iPhone in 2007, created by Steve Jobs. The company releases a new model each year. Ongoing improvements began with internet connectivity, text messaging, and a built-in camera. Over time, battery power, photo quality, and more have supported updating phones, increasing their demand.

1. Innovators/ Pioneers

After creating the iPod, Steve Jobs worried that soon, music would be installed on mobile phones and would fall behind. As a result, Jobs created the iPhone and transformed the music industry with iTunes and the iTunes Store.

2. Early Adopters

The first iPhone sold for roughly $600, but the pricing didn't prevent consumers from lining up outside the doors to purchase the item. Early adopters are quick to buy products in their early stages because they are adventurers, instinctive, and fearful of missing out. Companies use Early adopters to their advantage by pre-releasing the products. In addition, the products are to help maintain relationships.

3. Early Majority & Late Majority

Early adopters determine whether the early majority will invest in new technology. The early majority are always hesitant to buy the product. By 2008, Apple sold $11 million worth of iPhones. In 2015, sales increased to $231 million. In 2018, Apple sold more than 217 million iPhones. People in the early majority realize investing is an economic necessity and a means to keep up.

5. Laggards

Laggards tend to be a part of older generations and doubtful people. Older generations weren't as exposed to technology as future generations have become. Some people not interested in purchasing iPhones say it's because of their features and high prices. Laggards also come from underdeveloped countries or are uneducated in computer literacy.