Diffusion of Innovation

Abstract Diffusion of innovation is the process by which an innovative product spreads within a market. Several models have been proposed to describe this process. According to Rogers' model, the diffusion rate is influenced by product characteristics and diffusion progresses by word of mouth. Moore's crossing‐the‐chasm model focuses on differences between customer segments, and notes that word‐of‐mouth may not necessarily flow from early to later adopters. Both Rogers' and Moore's models offer managerial insights and implications. Diffusion models, such as Bass's model of durable goods sales, are often used to predict the rate of diffusion of innovative products into the market. Intriguing questions still…