Marketing: Diffusion of Product Innovation
14th February 2026 20:16
Everett Rogers in his seminal work described the diffusion of product innovation in a population by splitting the consumers into five classes:
2.5% Innovators who possess a curosity for new ideas
13.5% (Cumul 16.0%) Early Adopters who quickly see the benefits of the innovation and build opinion in the population
34.0% (Cumul 50.0%) Early Majority who feel the need to join in
34.0% (Cumul 84.0%) Late Majority who are skeptical but become aware of the benefits.
16.0% (Cumul 100.0%) Laggards who have a conservative tilt but realise they are losing out.
Once the innovators have proved the benefits of the Product, there is a dynamic change in the level of risk aversion of subsequent classes of consumer. This can be explained by Prospect Theory developed by Daniel Karhnmean and Amos Tversky. Prospect Theory states that the pain of a wrong purchase is felt more than the joy of good purchase, pound for pound, so the monetary benefits must be worth much more than the cost in the decision to buy the Product. Early Adopters change their view of the pain-joy equation once they become aware of the benefits gained by the Innovators.