Laggards

Definition

Laggards are the last group of consumers to adopt an innovation or new product, typically characterized by a reluctance to change and a preference for established traditions. They usually represent a small percentage of the market and are often resistant due to various factors such as skepticism, financial constraints, or lack of awareness about the innovation. Understanding laggards is crucial for marketers as it highlights the challenges in reaching this segment during the product life cycle.

5 Must Know Facts For Your Next Test

1. Laggards typically represent around 16% of the total market according to the adoption curve.
2. They are more likely to be older individuals who prefer familiar products and are often skeptical about new technologies.
3. Laggards tend to rely on word-of-mouth from trusted sources rather than marketing communications when making purchasing decisions.
4. This group is often influenced by economic factors, making them less willing to invest in innovations until they see widespread acceptance.
5. Understanding the laggard segment can help businesses develop targeted strategies to eventually convert them into adopters.

Review Questions

• How do laggards differ from other consumer segments in the adoption curve?
  • Laggards differ significantly from other consumer segments in that they are the last to adopt new products or innovations. Unlike innovators or early adopters who are eager to try out new ideas, laggards are typically characterized by their resistance to change and preference for traditional products. This reluctance often stems from skepticism, financial limitations, or a lack of awareness about new innovations. Understanding these differences helps marketers tailor their approaches when trying to reach this segment.
• Discuss the implications of having laggards in the product life cycle for marketers.
  • Having laggards in the product life cycle can pose challenges for marketers as they may delay the overall adoption of an innovation. Marketers need to recognize that laggards often require different strategies compared to early adopters and the early majority. This may involve focusing on building trust through testimonials from credible sources, demonstrating long-term value, and addressing financial concerns. Successfully converting laggards can lead to higher market penetration and a more complete acceptance of a product.
• Evaluate strategies that could effectively engage laggards and encourage them to adopt innovations.
  • To effectively engage laggards and encourage adoption of innovations, marketers can employ several strategies. First, emphasizing peer influence by showcasing testimonials from individuals they trust can help ease their skepticism. Second, offering trial periods or low-cost options may reduce perceived risk and financial barriers. Additionally, simplifying the technology or product features can make it more accessible. Finally, creating educational campaigns that highlight practical benefits can gradually shift their perspective and motivate them to consider adopting the innovation.

Related terms

Adoption Curve: A model that illustrates the stages of consumer acceptance of new products, typically categorized into innovators, early adopters, early majority, late majority, and laggards.

Market Penetration: The percentage of potential customers who have purchased a product or service in a specific market, indicating the success of an innovation over time.

Diffusion of Innovations: A theory that explains how, why, and at what rate new ideas and technology spread among cultures, detailing the roles different consumer segments play in this process.