Diffusion of Technology: The Technology Adoption Life Cycle

The technology adoption life cycle was originally observed during the technology diffusion studies of rural sociologists during the 1950s. University researchers George Beal, Joe Bohlen, and Everett Rogers were looking at the adoption rate of hybrid seed among Iowa farmers in an attempt to draw conclusions about how farmers accept new ideas. They discovered that the process of adoption over time fit a normal growth curve pattern—there was a slow gradual rate of adoption, then quite a rapid rate of adoption, followed by a leveling off of the adoption rate. Personal and social characteristics influenced when farmers adopted the use of hybrid seed corn; younger, better-educated farmers tended to adapt to the new technology almost as soon as it became available, whereas older, less-educated farmers waited until most other farms were using hybrid seed before they adopted the process, or they resisted change altogether.

In 1962, Rogers generalized the technology diffusion model in his book Diffusion of Innovations, using the farming research to draw conclusions about the spread of new ideas and technology. Like his fellow farming model researchers, Rogers recognizes five categories of participants: innovators, who tend to be experimentalists and are interested in the technology itself; early adopters such as Josh Klenert, who are technically sophisticated and are interested in using the technology for solving professional and academic problems; early majority, who constitute the first part of the mainstream, bringing the new technology into common use; late majority, who are less comfortable with the technology and may be skeptical about its benefits; and laggards, who are resistant to the new technology and may be critical of its use by others (Rogers, 1995).

When new technology is successfully released in the market, it follows the technology adoption life cycle shown in Figure 16.7. Innovators and early adopters, attracted by something new, want to be the first to possess the innovation, sometimes even before discovering potential uses for it, and are unconcerned with the price. When the iPad hit stores in April 2010, 120,000 units were sold on the first day, primarily as a result of presales (Oliver, 2010). Sales dropped on days 2 and 3, suggesting that demand for the device dipped slightly after the initial first-day excitement. Within the first month, Apple had sold 1,000,000 iPads, exceeding industry expectations (Goldman, 2010). However, many mainstream consumers (the early majority) are waiting to find out just how popular the device will become before making a purchase. Research carried out in the United Kingdom suggests that many consumers are uncertain how the iPad will fit into their lives—the survey drew comments such as “Everything it does I can do on my PC or my phone right now” and “It’s just a big iPod Touch…a big iPhone without the phone (O’Hear, 2010).” The report, by research group Simpson Carpenter, concludes that most consumers are “unable to find enough rational argument to justify taking the plunge (O’Hear, 2010).”

However, as with previous technological advances, the early adopters who have jumped on the iPad bandwagon may ultimately validate its potential, helping mainstream users make sense of the device and its uses. Forrester Research notes that much of the equipment acquired by early adopters—laptops, MP3 players, digital cameras, broadband Internet access at home, and mobile phones—is shifting into the mainstream. Analyst Jacqueline Anderson, who works for Forrester, said, “There’s really no group out of the tech loop. America is becoming a digital nation. Technology adoption continues to roll along, picking up more and more mainstream consumers every year (Wortham, 2009).” To cite just one example, in 2008 nearly 10 million American households added HDTV, an increase of 27 percent over the previous year (Wortham, 2009). By the time most technology reaches mainstream consumers, it is more established, more user-friendly, and cheaper than earlier versions or prototypes. In June 2010, Amazon.com slashed the price of its Kindle e-reader from $259 to $189 in response to competition from Barnes & Noble’s Nook (Bartash, 2010). Companies frequently reduce the price of technological devices once the initial novelty wears off, as a result of competition from other manufacturers or as a strategy to retain market share.

Although many people ultimately adapt to new technology, some are extremely resistant or unwilling to change at all. When Netscape web browser user John Uribe was repeatedly urged by a message from parent company AOL to switch to one of Netscape’s successors, Firefox or Flock, he ignored the suggestions. Despite being informed that AOL would stop providing support for the web browser service in March 2008, Uribe continued to use it. “It’s kind of irrational,” Mr. Uribe said. “It worked for me, so I stuck with it. Until there is really some reason to totally abandon it, I won’t (Helft, 2008).”Uribe is a self-confessed late adopter—he still uses dial-up Internet service and is happy to carry on using his aging Dell computer with its small amount of memory. Members of the late majority make up a large percentage of the U.S. population—a 2010 survey conducted by the U.S. Census Bureau found that despite the technology’s widespread availability, 40 percent of households across the United States have no high-speed or broadband Internet connection, while 30 percent have no Internet at all (Whitney, 2010). Of 32.1 million households in urban areas, the most common reason for not having high-speed Internet was a lack of interest or a lack of need for the technology (Whitney, 2010).

Experts claim that, rather than slowing down the progression of new technological developments, laggards in the technology adoption life cycle may help to control the development of new technology. Paul Saffo, a technology forecaster, said, “Laggards have a bad rap, but they are crucial in pacing the nature of change. Innovation requires the push of early adopters and the pull of laypeople asking whether something really works. If this was a world in which only early adopters got to choose, we’d all be using CB radios and quadraphonic stereo.”¹ He added that aspects of the laggard and early adopter coexist in most people. For example, many consumers buy the latest digital camera and end up using just a fraction of its functions. Technological laggards may be the reason that not every new technology becomes a mainstream trend (see sidebar).

Mass Media Outlets and New Technology

As new technology reaches the shelves and the number of early majority consumers rushing to purchase it increases, mass media outlets are forced to adapt to the new medium. When the iPad’s popularity continued to grow throughout 2010 (selling 3,000,000 units within 3 months of its launch date), traditional newspapers, magazines, and TV networks rushed to form partnerships with Apple, launching applications for the tablet so that consumers could directly access their content. Unconstrained by the limited amount of space available in a physical newspaper or magazine, publications such as The New York Times and USA Today are able to include more detailed reporting than they can fit in their traditional paper, as well as interactive features such as crossword puzzles and the use of video and sound. “Our iPad App is designed to take full advantage of the evolving capabilities offered by the Internet,” said Arthur Sulzberger Jr., publisher of The New York Times. “We see our role on the iPad as being similar to our traditional print role—to act as a thoughtful, unbiased filter and to provide our customers with information they need and can trust (Brett, 2010).”

Because of Apple’s decision to ban Flash (the dominant software for online video viewing) from the iPad, some traditional TV networks have been converting their video files to HTML5 in order to enable full TV episodes to be screened on the device. CBS and Disney were among the first networks to offer free TV content on the iPad in 2010 through the iPad’s built-in web browser, while ABC streamed its shows via an iPad application. The iPad has even managed to revive forms of traditional media that had been discontinued; in June 2010, Condé Nast announced the restoration of Gourmet magazine as an iPad application called Gourmet Live. As more media content becomes available on new technology such as the iPad, the iPod, and the various e-readers available on the market, it appeals to a broader range of consumers, becoming a self-perpetuating model.