Personal Influence & Opinion Leadership Process Opinion Leadership is the process by which one person (the opinion

leader) informally influences the actions or attitudes of others, who may be opinion seekers or merely opinion recipients. Is Interpersonal, Informal and takes place between 2 or more people who have no pecuniary interest/commercial interest/ ains. !O"# In $%, we will find turban&clad old man in an 'd, tryin to e(plain to another about a tractor and in the end say, this is from "ahindra $ractor. $his is usin !O" concept even in an 'd. %iral "arketin # Is the combination of email and !O". )mail did it. *otmail was the first to use it.++,ure success. "any -omputer 'nti&%irus companies use it. It would send a si nature of the company.s product on every mail that the recipient would read and possibly form an attitude towards the product/service. Opinion Leadership /rocess# %ery dynamic and powerful consumer force -redibility# *i hly credible sources of information. $heir intentions are best perceived as bein in the best interest of the opinion recipient. ' person may not act favorably to an 'd, but is likely to do so, when a friend or collea ue recommends the product/service. Opinion Leadership /rocess# /ositive 0 1e ative /roduct Information 'n 'd mi ht not be always favorable to a product. 2ecause an Opinion leader provide both favorable and unfavorable info, they are re arded more credible. Opinion Leadership /rocess# Information 0 'dvice Opinion Leaders are a source of both Information and 'dvice. $hey share e(perience with a product, relate what they know about a product or even advise to buy or avoid a product. $hey start 3In my e(perience4..5 In -anada, consultants start 3if I were you....5 Opinion Leadership & 6eality -orporates en a e a ed and e(perienced -onsultants to advise suspects and prospects.

In real estate industry, life style malls, cars, you have consultants, who are typically Opinion Leaders. 7in/2/O/,oftware comp..en a e senior and e(perienced bank professionals $heir very presence will create an impression that a consumer will receive valuable advice based on e(perience. In an 'd, 2 women discuss a woman.s personal product where one advises the other and recommends a suitable product. Opinion Leadership & 6eality */, I2", 8ell and many other corporates have web forums where there are Opinion Leaders present online to answer 9uestions and posts relatin to the product. Diffusion of Innovations 6elates to acceptance of new products and services 8iffusion of Innovations : 8iffusion process ; 'doption process 8iffusion refers to the macro process of spreadin the new product to the public, ri ht from its source. 'doption is a micro process that focuses on the sta es that the consumer passes throu h, when decidin to accept or re<ect a new product. A.Diffusion Process: Is the process by which the acceptance of an innovation (' new product, new service, new idea or new practice) is spread by communication (mass media, sales people, or informal conversations) to members in a social system (tar et market) over a period of time. *as = basic elements 1. Innovation: 1o basic definition has been provided so far. 2ut = orientations attempt to define it. Firm oriented: /roduct is new to company. $reats the newness from the perspective of the company. Product oriented: -ontinuous Innovation (latest version of !indows, 6edesi ned ,antro, ,u ar&free *orlicks) *as the least disruptive influence 8ynamically -ontinuous Innovation# Is somewhat more disruptive (*88 -amcorders, 8isposable diapers, 2luray 8%8s) 8iscontinuous Innovation# 6e9uires consumers to adapt to new behavior patterns. (2roadband, "obile /hone with $%, 2lackberry, e&learnin )

Market oriented : >ud es newness of a product in terms of how much e(posure consumers have to the new product. ' product is considered new if it has been bou ht by a relatively small (fi(ed) ? of the potential market ' product is considered new if it has been on the market for a relative short (specified) period of time Consumer Oriented: ' 3new5 product is one that a potential customer <ud es to be new. 1ewness is based on the consumer.s perception of the product rather on physical features or market realities. Characteristics that influence Diffusion:: Relative Advantage (8e ree to which potential customers perceive a new product as superior to e(istin substitutes) Compati ilit! (8e ree to which potential customers feel a new product is consistent with their present needs, values and practices) Comple"it! (8e ree to which a new product is difficult to understand or use, affects product acceptance) #riala ilit! (8e ree to which a new product is capable of bein tried on a limited basis) O serva ilit! (Is the ease with which a product.s benefits or attributes can be observed and described) $. Channels of Communication !O" 'dvertisin /ublicity ,ales personnel Informal Opinion Leaders Internet 18$%, 6ediff, 'ma@on websites %. &ocial &!stem Is a physical, social or cultural environment to which people belon and within which they function. Aey point is that a social system.s orientation is the climate in which marketers must operate to ain acceptance of their new products. B # ,u ar&free *orlicks++caters to the se ment of all diabetic patients B # -holesterol&free chocolates++health conscious B # B &free cakes+++reli ion&oriented B # )arlic&free+++>ain food++reli ion/belief based

'. #ime Is the backbone of the diffusion process *as C components /urchase time ($ime between awareness of a new product and actual purchase) Identification of 'dopter cate ories (Innovators 2.D?, Barly 'dopters EC.D?, Barly "a<ority C=.F?, Late "a<ority C=.F?, La ards EG.F?) 6ate of 'doption# *ow lon it takes a new product or service to be adopted by members of a social system. (. Adoption Process ,tudy the schematic (from te(tbook) which consists of blocks such as# 1eed or B(istin /roblem 'wareness Interest Bvaluation $rial 'doption (or 6e<ection) /ost 'doption or /ost /urchase Bvaluation )"tensive Pro lem &olving# 8ecision&makin efforts of consumers have no established criteria for evaluatin a product cate ory or brand or have not narrowed the number of brands they will consider Limited Pro lem &olving# 't this level, consumers already have established the basic criteria for evaluatin the product cate ory and the various brands in the cate ory. 2ut they have not fully established preferences over select roups of brands Routini*ed Pro lem &olving# -onsumers have e(perience with the product cate ory and a well&established set of criteria with which to evaluate the brands they are considerin . ;;;;