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Only Meaningful Innovation will Drive Adoption of Products: NPD

January 08, 2013

Only Meaningful Innovation will Drive Adoption of Products: NPD

By Mini Swamy
TMCnet Contributor

It is seen that the number-one priority of the tech industry and companies that rely on it is to hasten the adoption of both products and services, but this will happen only if consumers are sufficiently impressed with certain aspects of the product to want to make that happen.

This was the point the NPD Group (News - Alert) underscored in its recent Tech Innovation study. The question is not only about introducing better features and specifications, but also about meaningful innovation, which makes the gadget more valuable than the previous one. Therein lies the challenge.

Examining the key drivers that triggered the adoption of new products, the study found price, brand and software figured as top reasons. In the case of the iPhone (News - Alert), for instance, the chief motivator was the Apple brand and the software’s features.

Price was not an obvious consideration here. In the case of consumers who bought a tablet, software features and price appeared to be more important than the brand.

The study indicated that most consumers are content with the devices they’ve bought, and are not keen on getting something different unless there was a specific reason to get a new one. A large percentage of consumers did insist, however, that the devices should fit into their lifestyles.

If that was satisfied, they didn’t seem to be in a hurry either to upgrade or change their devices.

According to Stephen Baker, vice president of industry analysis at NPD, consumers just wanted their devices to provide solutions to everyday problems, which are often the most unglamorous. They wanted to be able to shop, enjoy basic entertainment, streaming movies, use the social media, and be safe in their vehicles and homes.

Exotic applications, which promised entry into the virtual world, nearly always took a backseat.

“There is a fundamental conflict between marketing to early adopters who are more profitable customers and evangelists, and the rest of us. The industry can’t rely on consumers to drive innovation; it needs to give consumers a reason to want to adopt the innovation,” said Russ Crupnick, senior vice president, industry analyst at NPD.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Braden Becker

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