Question

Describe the “adopter categorization” and “product life cycle” concepts. How do they relate to each other?

Answer 1

A) Adopter categorization:

It is the phenomenon of individual willingness to try out a new product or innovation. Based on this various types of individuals are categorized as below

i. Innovators: Who are risk takers and tend to adopt to a very new product.

ii. Early Adopters: Who adopt to change and more concerned towards their reputation.

iii. Early and late majority: Who are more practical about their adoption rather than reputation and innovation.

iv. Laggards: They adopt to new trend when everyone is ready or following.

B) Product life cycle:

It describes the stages a product goes from the beginning of innovation and finishing of the product into the market.

i. Introduction: Research of the product.

ii. Growth: When the product sale rate is go on increasing.

iii. Maturity: When keeping sales rate higher even competitors enter into the market.

iv. Decline: When sales rate falls down.

C) Relationship between A and B: These various individuals who are categorized ultimately related to product say product life cycle in following ways.

i. They(Individuals) should form strategies where sales(Products) rate doesn't decline.

ii. Trying to reach the product to more new people.

iii. They should try to reduce the prices so that they are attractive to the customers.

iv. Try to add value to the existing product.

v. New kind of packing and exploring new market

These ways they increase sales rate and relate to each other.