Consumer Resistance To Innovation Case Study

Improved Essays
In the text edited in 1989 "Consumers Resistance to Innovations: the MArketing Problem and its Solutions", the two authors S. Ram and J. N. Seth listed five barriers that literally paralysed a potential customers when it comes to adopting an innovation. Five barriers can be clustered under two macro categories: A. Functional Barriers, those related to consumers perceived change in usage patterns (Usage, Value and Risk):
1. Usage Barriers: it comes when an innovation is not compatible whit usual existing behaviours, attitudes, habits and practice. It require a long term investments in term of time in order to an acceptance change in the customers routine. Probably the most common resistance reason.

2. Value Barriers: it occurs even if the
…show more content…
Image Barriers: adoption generates identity from source of their origins like product class, industry or even manufacturing country. It clearly derives from stereotypes, but if the association is unfavourable then probably the customers will address an unfavourable image to the product.

4.3.2 Resilient Profile Segmentation
A study conducted by Shell Project & Technology division theorised fine categories of EVs resilient profiles accordingly to their innovativeness, greenness and EVs interest levels:
1. "Willing Pragmatist": with very high greenness tendency but medium innovativeness level. Typically male, older, high income, high number of retired. Driven by functionality and willing to pay a premium for fuel efficiency. They are fairly optimistic about EVs but they could fear of EVs adoption due to social image risk.

2. "Anxious Aspirer": typically female, belonging to younger generation, lower income. High greenness and innovativeness level but medium interest into adopt EVs technology. Tendency to buy second-hand, old, small and cheaper cars with low fuel consumption. Uncertainty increase anxiety and image risk. High mileage town drivers, they could be willing to pay a premium to fuel economy and environmental
…show more content…
First of all relatively low numbers of EVs model available on the market don't give choice margin to potential users. Autonomy range is perceived as not sufficient and charging duration is perceived as too long; especially in case of not really developed recharging infrastructures how on average actually is. Consumers don't justify and perceive as negatively expensive total cost of ownership (purchasing price, fuel, maintenance cost and resale price) as they see EVs inferior to a conventional car, creating huge barriers to adoption, also because new generation EVs is a quite new market and it's difficult at the moment to forecast resale value and services costs. Moreover is important to highlight the fact that lack of knowledge and information cause confusion about the power cost trade-off between electricity. Concerning environment topic consumers clash mainly with two related conflicts: first one about electricity sources, second one about battery recycling (linked to short EVs battery lifespan). In the first case individuals don't know if electricity used to feed EVs engine is provided from renewable sources or carbon/nuclear sources, decreasing gasoline but increasing fossil fuel energy might be perceived as trading one problem for another. And merely, if oil price dropping down is a disincentives to EVs adopting. In the second case customers raise doubt about batteries

Related Documents

  • Decent Essays

    I agree with the statement in the essay that says less than one percent isn’t worth the risk of disturbing the area. I think more sun and wind energy sources should be used to cut back on energy cost. I don’t feel like more energy efficient vehicles is for everyone. The small energy efficient vehicles are great for single people or very small families who live in cities who doesn’t…

    • 243 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    I have listed all the pros of the EV, but with good impact there is also a bad impact. What the corporations do not want consumers to know are the evil side of things. This phenomenon is called green washing. Green washing is “the term for ads and labels that promise more environmental benefit than they deliver is “greenwashing” (Dahl 2010). They do not want to steer the consumers away from their product.…

    • 233 Words
    • 1 Pages
    Improved Essays
  • Improved Essays

    When you think of electric cars, do you think of a toy remote control car or a high end Tesla? As far as transportation goes, the first practical electric car was made in 1884 London. They would go on to make up approximately a third of vehicles on the road in the early 1900s. They quickly faded from roadways however, due to advances in the internal combustion engine. These Electric vehicles would not begin to return to prominence until the 1990s.…

    • 708 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Product Adoption Paper

    • 512 Words
    • 3 Pages

    The topic I found most interesting from our overview of the marketing 350 class was the topic diffusion and adoption of new products. Product adoption is the process by which a consumer or business begins to buy and use a new good, service, or idea. Diffusion of a product is the process by which a product or innovation spreads throughout a population. Many people have a degree of readiness to try a new product and fall into different categories based on their readiness, including innovators, early adopters, early majority, late majority, and laggards. Innovators make up 2.5% of the target market and are those who are the first users to try a product or the risk takers.…

    • 512 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Stereotypes Of Consumers

    • 292 Words
    • 2 Pages

    In the learning module, is states that consumers in some instances have stereotyped products and brands based on their country. In a way I think statement is very accurate, because some consumers based there decision on where a product has being made in. On the other hand, for some consumers it does not really matter what country the product is being made in there going to purchase the product anyways. Honestly, I can say for myself everything I purchase I always try to pay attention to where the product is being made in. I just always find it interesting to see where products are being made in that were are purchasing.…

    • 292 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    Key Innovation Issues

    • 2396 Words
    • 10 Pages

    This essay will discuss the 5 key issues involved with generating ideas for innovation. These 5 key issues are: • Sources of innovation – where do our ideas come from and how do we get more? • Knowledge – push, vs demand – pull – how our knowledge influences us to innovate without consideration of user needs versus what the market is actually demanding • Internal sources: climate and creativity – how do we get more creative with our thinking and do we apply it to whats relevant • External sources: open innovation – sourcing innovation from external parties • Search tools and methods – how we find innovation arounds us and what methods we use to do so (Tidd & Bessant, 2014) Throughout the essay, these 5 issues will be linked directly to one…

    • 2396 Words
    • 10 Pages
    Superior Essays
  • Great Essays

    Aspects such as price, value, fuel consumption and efficiency are some of the factors that buyers take into account when considering a purchase. Ford Motor Company needs to position itself in the force of buyer power; this implies that the company must establish and maintain high levels of trusts from its customers. In addition, they need to further adopt strategies aimed at designing vehicles that are fuel efficient and mileage savers, which will impose repetitive buyers who can subsequently become advocates for their products in the motor industry (Drucker…

    • 2094 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    EV1 Case Study

    • 897 Words
    • 4 Pages

    General Motors introduced the EV1 in 1996, after over 30 years of testing and exploration. The EV1 was a battery powered vehicle, called the Chevrolet Electovair. The vehicle was principally announced to fulfill the California zero-emissions decree. However, when state guidelines reformed, General Motors allowed their customer leases elapse and terminated manufacturing the EV1 2003.…

    • 897 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The five-stage process that specifically relates to high involvement decision making consists of problem recognition, information search, evaluation of alternatives, purchase decision, and post purchase evaluation. So for this process, my example will be of a 2013 Chevrolet Traverse that I purchased last October. Problem Recognition: I had an old 2002 Chevrolet Suburban that had many problems and way over 100,000 miles. The amount of problems it had was too costly to fix so I became aware of the need to get a newer vehicle. Information Search:…

    • 786 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Electric Cars Essay

    • 755 Words
    • 4 Pages

    This means that for the same price, you can buy a nice gasoline-powered car. It’s about cost performance. At the same price people always choose gasoline-powered car, but nobody really cares about the environment. Battery Issue The car battery is not like the ordinary battery, it’s totally different type with high technology.…

    • 755 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Topic of Interest 1: "Focusing on Customers Is New to Business Strategy" With the shift of focus on selling products, to investment in customer loyalty, I found it interesting that this is a relatively new concept. As I grew up, we purchased things. That is about as far as my thought process ran and it was not until I realized that the coupons being dispensed at my local grocery store were related to my shopping habits that I realized that they were tracking my purchases. That ability to type in my phone number for savings is actuality a project management tool they are using to monitor my habits.…

    • 794 Words
    • 4 Pages
    Decent Essays
  • Superior Essays

    When implementing this strategy, it is important for operations managers to do market research. Tesla noticed that the use of gasoline cars was negatively effecting the environment, therefore they designed a car that is powered by electricity and consumes 50% less CO2. This allowed Tesla to target consumers who also had the same vision as Tesla, focusing on being environmentally sustainable. Most individuals would prefer a car that is easy, convenient, reliable and environmentally friendly. Tesla has met all these factors which has pleased consumers and therefore improved the performance of the business.…

    • 1833 Words
    • 8 Pages
    Superior Essays
  • Improved Essays

    Electric cars are better than gasoline cars. Imagine the world without the harmful pollution from burning fuels that produce dangerous fumes--a world where tremendously high gas prices no longer remain, and where we don’t completely deplete the world’s scarce supply of fossil fuels. We need to prevent smog and other dangerous gases like it. Save the environment; get a battery powered…

    • 486 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    2.3.3 Innovation and Sacco Growth Intensified competition between SACCOs as well as allowing members to easily compare offers provided by different SACCOs has heightened the rate of member switching to other service providers. In its widest sense, innovation is considered to be anything that is new to a business or as comprising new products and processes and significant technological changes of products and processes (Hine & Kapeleris, 2006). They add that innovation has been implemented if it has been introduced on the market or used within a production process. There are five types of innovation, namely, introduction of a new commodity; a new production method; opening up of a new market; change in source of supply; and re-organization…

    • 1142 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Technology acceptance – novelty- knowledge 1. What is your first impression about this application? (Prompting: like it/ don’t like it/ any opinions) Slow- "because the app does not recognize immediately the images, it is slow, is not as fast as application" 2. What did you think of the experience you just had?…

    • 1442 Words
    • 6 Pages
    Superior Essays