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Product adoption - case study

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New technology markets provide excellent examples of different types of consumers and their adoption habits. Below is an excerpt from the 2010 stakeholder report by Ofcom (The independent regulator and competition authority for the UK communications industries). This report identified the following trends:

There was also a significant rise in the take-up of 3G mobile connections and increasingly sophisticated smartphones that offer broadband-like connectivity in a handset. Nearly one third of consumers are now using the 3G network's higher-bandwidth capabilities and with one in four claiming to own a smartphone in Q1 2010. This compares to one in five and one in seven respectively in Q1 2009. In contrast, the proportion of homes using fixed-line telephony fell during 2009, down two percentage points to 85%, reflecting an increase in the number of mobile-only households.

The number of homes with digital video recorders (DVRs) continued to increase sharply during 2009, rising from 27% to 37%, while the proportion of homes with Blu-ray/high definition DVD players increased by six percentage points to 17%.

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Source: Ofcom Stakeholder Report


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1

Product life cycle

Put these phases of the product life cycle in order from the start of the product life cycle to the end.

a)
b)
c)
d)
e)

The answer should be:

First - Development

Second - Introduction

Third - Growth

Fourth - Maturity

Fifth - Decline

Check your answer