Complete and comprehensive summary of the UvA 2021 course Disruptive Innovation Marketing, including ALL ARTICLES and ALL LECTURES (slides and extensive notes) that you need to know for the final exam. The summary is in English and is 50 pages long. The most important parts are colored or made ‘b...
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Disruptive Innovation Marketing
Summary of all Lectures (Notes + Slides) and all Articles [2021]
[p.28] Do you want to be a cyborg? The moderating effect of ethics on neural implant
acceptance – Reinares-Lara, Olarte-Pascual, & Pelegrín-Borondo (2018)
[p.30] Limits to human enhancement: Nature, disease, therapy or betterment? –
Hofmann (2017)
[p.46] Can a virtual supermarket bring realism into the lab? Comparing shopping
behavior using virtual and pictorial store representations to behavior in a
physical store – Van Herpen, Van den Broek, Van Trijp, & Yu (2016)
[p.49] Increasing saving behavior through age-progressed renderings of the future
self – Hershfield et al. (2011)
Innovations: an offering that is new to the marketplace (a product, service, or idea);
consumers within a market segment perceive as new & that has an effect on existing
consumption patterns.
- Innovations can be new products or new services.
Disruptive innovations: are innovations that create a new market and value network and
eventually disrupts an existing market and value network. They…
- affect multiple (geographical) markets;
- affect multiple industries;
- affect multiple organizational hierarchy levels.
Disruptive innovation needs to be new for a certain market segment. Does not have to be
globally new. E.g. Facebook can be an innovation to older people (who are not as
acquainted with Facebook).
- There needs to be some form of adoption for an innovation to exist.
- Only when you see that consumers’ lives have changed by consuming the innovation,
the innovation can be called a success.
A successful innovation also needs to be spread enough (= diffusion).
➢ Diffusion: reflects the behavior of the marketplace of consumers as a group; the
percentage of the population that has adopted an innovation at a specific point in
time.
- If you do not purchase or lease an innovative product (and thus not change your
behaviour), you have not truly adopted the innovation and it has not diffused. This is
more like awareness of existence.
- Only a very limited amount of innovations successfully diffuses.
SOCIAL SYSTEM CHARACTERISTICS:
Innovation capacity: how capable is a social system to account for a diffusion of an
innovation.
• E.g. infrastructural capability that needs to be in place such that the innovation can
diffuse.
• For example, you need Internet for your innovative app to diffuse.
• Political components, knowledge, etc.
Social norms: what you think that other people think about you. We think that others judge
us.
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, • E.g. think of a conservative sext or cult that believes technology is evil. A member will
have a hard time adopting such an innovative technology.
• E.g. Political conservative → traditions are more important than innovation.
Modernity: how far along has a system already come in adopting modern things.
• E.g. innovative way of paying with your smartphone. The Netherlands is already quite
modern, i.e. we work with touch payments, Tikkies etc., hence the transition to this
new innovation will be easier.
• In a non-modern system (that relies mostly on cash) it is more difficult to transition to
the innovation.
Opinion leadership: innovation diffusion is like messages that are transmitted to another
person. It is important and necessary that people hear about the innovation and become
aware of it. Powerful people that have access / reach to many people play an important role
in others hearing about and adopting the innovation.
• E.g. Elon Musk (technology leader).
Physical distance: innovations spread better in urban environments (you want people to be
as close to each other as possible), spread better between large groups of people that have
little space between them.
• E.g. UberEats starting to deliver foods with drones. My neighbor makes an order and
I’m standing on my balcony, so I see the innovation working when my neighbor’s food
gets delivered. I see that another person has adopted and/or is using an innovation.
→ observational learning.
• This is the opposite of Covid-19.
Homophily: refers to the idea of ‘birds of a feather flock together’. People who are similar
(clusters) stick with each other, but they don’t communicate with others.
• E.g. I’m from a small village ‘A’ and the neighbor village is ‘B’. For some weird
historical reason, the two villages don’t get along. People go to their own schools and
music clubs of their own village/town and they do not date people from the other
village; i.e. low communication and interaction.
• Homophile systems are very bad for innovation. The word about drone food delivery
will never spread to village B if someone orders food in village A.
• Heterophile systems is what is good for diffusing innovation; it is an environment in
which there is a lot of interaction/communication going and there are not as much
separate clusters, people are more integrated as a whole.
INNOVATION CHARACTERISTICS
Whereas social system characteristics cannot be changed by the company, the company is
able to change the innovation characteristics of their innovation.
Relative advantage: degree to which an innovation is perceived as better than the idea it
supersedes (thus: The innovation has an obvious relative advantage compared to the
previous solution/service). The greater the perceived relative advantage of an innovation, the
more rapid its rate of adoption.
• People used taxi cabs, these are very expensive and using them is not very
convenient (you have to plan ahead, or someone catches it in front of your nose, or
you need to wait long).
• Uber is cheaper and more convenient (reliable pickups, cheaper).
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