This refers to the degree to which an innovation is perceived as being better than the idea it supersedes.
Relative Advantage
This refers to the degree to which an innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters.
Compatibility
This refers to the degree to which an innovation is perceived s relatively difficult to understand and use.
Complexity
This refers to the degree to which an innovation may be experimented with on a limited basis.
Trialability
This refers to the degree to which the results of an innovation are visible to others.
Observability
Venturesome describes this adopter category which represents the first 2.5% of adopters.
Innovators
Respectable describes this adopter category which represents the second set of adopters taking us to 13.5% of an innovations diffusion through a normal bell curve.
Early Adopters
Once we get to 50% of the diffusion of an innovation these three categories have embraced the innovation.
Innovators, Early Adopters and Early Majority
The second to last adoption category is describes as Skeptical. They represent 34% of adopters.
Late Majority
If you bought your first iPhone today you would be considered a __________. You would be represented in the final 16% of adopters.
Laggard
Clay Christensen talks about disruption in the US Steel Industry in the assigned video. What disrupted the legacy firms?
Mini mills
In the Christensen video, he discusses how low cost steel manufacturing disrupts rebar category. Why did the legacy firms let go of that portion of the business so quickly?
Legacy manufacturers couldn’t make money at the low end of their product line.
Over time the Mini Mill disruptors took over the entire steel business. Does Christensen indicate this is normal for a disruptive innovation?
Yes. Christensen indicated that this phenomenon happens in industry after industry.
Christensen talks about the disruption of Japanese vehicles into America. What segment of the population did the Japanese focus on when they first started selling cars in the US.
consumers who had never been able to afford a car.
In the Christensen video, Clay talks about the start of Toyota, Kia and Honda. He says they all started with:
Domestic capital in their domestic market
In the Christensen video, Clay discusses how disruption begins at the low end of the legacy product lines and eventually moves into the more profitable products by this time all the “disruptors” were focused on _________ innovations
sustaining
In the Christensen video, Clay tells the same story over and over again for different industries and products. He explains that the disruptor moves upstream eventually taking over all the business of the legacy company/industry. The analysts in the legacy company examine the value that the disruption brings to the firm where “revenue is unaffected and profits improved.”
Christensen calls this __________
The pursuit of profit
n Polites and Karahanna:
______________ is defined here as attachment to, and persistence of, existing behavioral patterns (some of which are habituated) even if there were better alternatives and incentives to change.
Inertia
When we examine the readings holistically, we can surmise that the adoption category most likely to exhibit Status Quo bias would be:
Laggards
What is the overriding emotion in status quo bias?
Fear
