ABSTRACT
This chapter describes the central processes of product development, adoption, and diffusion. The literature on the subject of new product development abounds with models that try to capture the essence of a complex process in a relatively simple structure. When studying innovation, a general model is needed as a conceptualization of the product development process. The process starts with recognition of a need and the eventual result is the adoption of an innovation. In addition to these adoption stages and outcomes the model incorporates buying-centre behaviour, the choice process, risk and information handling, and finally, seller interfacing. For a considerable time, the field of diffusion has been dominated by rural sociology. According to Rogers, research on diffusion of innovations originated independently within several distinct disciplines, such as sociology and anthropology. Although each discipline used its own approach, remarkably similar results were found.
