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Summary Disruptive Innovation Marketing complete course
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Disruptive Innovation MarketingWeek 1
Ma, Z., Yang, Z., & Mourali, M. (2014). Consumer adoption of new products:
independent versus interdependent self-perspectives. Journal of Marketing,
Independents: people who view themselves as autonomous and separate from
others.
Interdependents: people who view themselves as connected with others.
Optimal distinctiveness theory (ODT): two competing needs drive the quest
for social identity:
- The need to differentiate oneself from others
- The need to assimilate oneself with others
Newness: the degree of discontinuity in product functionality and technological
innovativeness as perceived by consumers.
- Really new products
- Incremental new products: stem from existing products used by the majority,
but they also offer new features or functionalities.
Distinctiveness utility: the product’s perceived ability to provide a desired
sense of distinctiveness.
- Interdependents desire assimilation with others but still value self-others
differentiation. Incrementally new products are ideal for satisfying their relatively
high assimilation needs as well as their distinctiveness needs.
- Independents: have a lower need for assimilation and higher need for
differentiation. They will derive more distinctiveness utility from really new
products.
Popularity cues: extrinsic information that signals the wise acceptance of the
product among customers.
- Scarcity cue: information that signals the product’s rarity.
- Popularity cue: information that signals the wide acceptance of a product.
Consumers in a predominantly independent (vs. interdependent)
culture are more willing to adopt really new products, whereas
consumers in a predominantly interdependent (vs. independent) culture
are more willing to adopt incrementally new products.
This effect is driven by the perceived fit between the product’s newness
level and the optimal level of distinctiveness consumers want.
The presence of distinctiveness-dampening cues (i.e., popularity cues)
and distinctiveness-enhancing cues (i.e., scarcity cues) can reverse the
effect of self-perspective such that the independent self becomes less
willing to adopt really new products and more willing to adopt
incrementally than does the interdependent self.
Implications:
A firm’s optimal market entry strategies may depend on the newness of
the product and the cultural orientation of the target market. When
launching an RNP, firms may consider introducing the product initially in
individualistic cultures and subsequently moving to more collectivistic
, societies. Because consumers in individualistic societies are more
receptive to RNPs, using such societies as the lead markets can result in
faster diffusion. Moreover, the lag time between the individualistic
countries and the collectivistic countries would help the latter adapt to the
radical nature of the innovation
When the product is an INP, however, it would be important for marketers
to secure consumer acceptance in collectivistic societies. Because
members of collectivistic societies are receptive to INPs, acceptance in
such societies can speed the diffusion of INPs.
Marketers can enhance innovation adoption by increasing the fit between
the newness of the product and the situationally activated self-construal of
the consumers. Two approaches may be used to achieve this goal:
1. Shift the consumers’ self-construal to match a particular level of
newness. For example, marketers of RNPs can use communication
appeals to enhance the accessibility of the independent mindset (e.g.,
appeals of independence or autonomy). Conversely, marketers of INPs
could appeal to the interdependent self (e.g., appeals of social harmony.
Note that perceived newness of an RNP can decrease as time goes by.
Thus, managers are advised to adapt their communication strategies over
time as the newness of the product changes.
2. Alter consumers’ perception of the distinctiveness of the product
to match a particular self-perspective. This strategy is useful when
the decision context is prone to inducing a particular self-view. Marketers
of RNPs may consider using popularity cues when the interdependent
mindset is salient due to situational or cultural influences—for example,
when marketing RNPs in a collectivistic society. The most evident
popularity cue for a new product is a large volume of actual sales. Absent
actual sales volume, however, firms can still convey anticipated popularity
by highlighting the speed of consumer adoption or positive consumer
evaluations of the product. When a new product experiences a large
volume of sales, fast rate of diffusion, or positive user evaluations,
marketers can use communication techniques such as mass advertising or
buzz marketing to help convey popularity. Likewise, when introducing an
INP in an individualistic culture, the use of scarcity cues would be a worthy
strategy. Firms can engineer scarcity or anticipated scarcity by restricting
the quantity of supply, associating the product with an elite group,
requesting preordering, planning product phaseout, adding lines of special
editions, and creating prestige pricing strategies. Moreover, these
strategies may be combined to maximize marketing outcome. For
example, while limiting quantity to convey scarcity, marketers may
engage in prestige or skimming pricing. The combination of these two
strategies not only reinforces a sense of scarcity but also helps ensure an
adequate financial return.
Waytz, A., & Norton, M. I. (2014). Botsourcing and outsourcing: Robot, British,
Chinese, and German workers are for thinking—not feeling—
jobs. Emotion, 14(2),
Botsourcing: The use of robots or robotic technology to replace human
workers.
Humanness dimensions: Emotion + Cognition
, People perceive emotion to be more essential to humanness than
cognition.
Workers experience more comfort with botsourcing of cognition-
oriented tasks than with botsourcing of emotion-oriented tasks. When
workers are faces with the prospect of their own jobs being botsourced, they
experience more threat and discomfort with botsourcing for emotion-oriented
versus cognition-oriented tasks.
Two possibilities for increasing comfort with botsourcing:
- Framing jobs as requiring more cognition than emotion
- Designing robots that appear capable of emotion (specifically for
emotion- oriented jobs)
People attribute robotic qualities differentially to different nationalities, and these
attributions predict preferences for outsourcing emotion – versus cognition-
oriented jobs.
More robotic countries: Germany, UK, China
Less robotic countries: Australia, Spain, Ireland
With less robotic countries, people express greater comfort with outsourcing
emotion – versus cognition-oriented jobs.
Preferences towards botsourcing follow the same patterns as for
outsourcing.
Lecture Week 1
Acceptance and Resistance
Innovations -> Acceptance/Resistance (social system, innovation and consumer
characteristics)-> Diffusion
Innovations: an offering that is new to the marketplace. A product, service, or
idea that consumers within a market segment perceive as new and that has an
effect on existing consumption patterns.
- Needs to be new to a consumer segment, doesn’t have to be new for
everyone in the world, only the group you want to reach with the
innovation.
- Not just products: different types of innovations. Products, services, ideas
etc.
- Needs to be an effect on excising consumption patterns. An innovation
only becomes valid if it actually has an influence in peoples’ lives. Needs
to be an adoption. You can have an awesome idea, but if no one cares, no
reason for an innovation to diffuse. Only if you see that peoples’ lives has
truly changed because of the adoption of this innovation, then we are
speaking about success.
When are innovations successful?
Needs to be a change in the way people do things because of the
innovation
Has to be spread widely enough. Will become quite relevant for a large
group of consumers.
Diffusion: reflects the behavior of the marketplace of consumers as a
group. The percentage of the population that has adopted an innovation at
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