dylanx

Explain the cases in which Risk also acts as a barrier to diffusion of innovation?

Hi docsity Q n A contributors, my question is that someone please provide the scenarios in which the risk factor of innovation acts as a barrier to its diffusion?
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maya090
"Risk: Risk also acts as a barrier to diffusion of innovation. Consumers show reluctance to use an innovative product/service offering out of fear of taking risks. There could be six types of risks that a consumer could face, viz., functional risk (would the product perform as expected), physical risk (would the product usage and or consumption pose a threat), social risk (would it cause risk of social embarrassment), financial risk (would the product will be worth the cost), psychological risk (would the innovation hurt consumers’ ego), and time risk (would it lead to wastage of time spent while making the purchase). The perceived risk barrier acts as a big barrier to the diffusion and adoption process; consumers are fearful of purchase, usage and consumption of innovative offerings, and thereby continue to patronize the existing alternatives, rather than adopt new ones (for fear of making a wrong decision). In order to overcome this problem, the marketers could make use of both marketing communication (via audio-visual or print media, or company salespersons), as well as interpersonal communication (opinion leadership, word-of-mouth communication). Trials (free or discounted) as well as interpersonal communication with peers, colleagues and friends can also encourage personal experience by the consumer and help overcome this risk. Source: http://in.docsity.com/en-docs/Diffusion_of_Innovation_-_Consumer_Behavior_-_Solved_Quiz_"
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