According to Everett Rogers’ life cycle, new technologies
  are adopted first by a group of ‘innovators’, then by ‘early
  adopters’ and the (early and late) ‘majority’, and finally by
  ‘laggards’ who are considered to be the most conservative
  group regarding new technologies.

  In reality, with high-tech innovations this life cycle is not as smooth as the curve suggests, Prof. Dr. Richard Elliott,
  Dean of the University of Bath School of Management, states. On the 1st of December, he held a guest lecture about high-tech innovation and brand strategy in the Masterclass New Product Development & Innovatie.

Closing the gap
Elliott, co-author of the book ‘Strategic Brand Management’, spoke about the large gap – a chasm - between the innovators and early adopters on the one hand and the rest on the other. For instance, there are major differences in customer motivation between the early purchasers and the rest. While the early adopters – Elliot calls them visionairies – are looking for technological performance and gadgets, the early majority is more pragmatic and seeks solutions and convenience.

In order to understand the differences between the two groups, Elliott pointed out that new technologies are not received as a single benefit. While new technologies offer means for control, a sense of freedom and of competence, fulfil the user’s needs and stimulate assimilation for some people, they create chaos, enslavement, new needs, isolation and result in a feeling of incompetence for others. This means that technology does not only have benefits, but can also lead to psychological and emotional disturbance for some as well. Elliott mentioned three strategies that individuals have for coping with new technologies: they can either ignore them, they can choose not to use them in all their abilities or embrace them. 

How can the gap be closed? That is a major marketing challenge. While the visionairies speak about the innovation with other people with a shared interest across boundaries (Elliott calls them horizontally oriented), the pragmatists communicate with others like themselves (vertically oriented).

Brand communities and social network theory
In order to close the gap, marketeers should look into their brand communities. The power of these communities is that they are outside the company. Participants do not have to know each other personally to communicate meaningful about the product. That means the internet is a great medium for these communities. Therefore, Elliott advised marketeers to look into their (on-line) brand communities to see what is going on. This way, marketeers can learn about the perceived benefits of their (new) products.

  According to Elliott, people are influenced most by what other people think and buy. Therefore, the 
  success of new products can not be explained by individual preferences alone. Elliott refered to the
  social network theory as a tool for closing the gap between the innovative group and the more
  conservative consumers. In his words: “Social influence drives the aggregated demand”. In the
  communication about products, stereotypes are really important, he said.

  There are many potentially successful new products. Since only a fraction becomes a hit in the real  
  world, he advises companies to try and produce these products as cheaply as possible and watch
  which ones are the most successful. This way, companies can invest most of their resources in
  products that will bring them success.

Elliott concluded his lecture by stating that not all companies should try to create friendly, warm brands. In some markets nice is dumb and nasty is regarded as capable. Perhaps you as a company want to been seen as cold, he said. So, think twice before building a warm brand!


More information about the Masterclass New Product Development & Innovatie

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