The purpose of this study is to forecast demand diffusion for digital still camera in Korean market, to set up diffusion model and to suggest diffusion strategy.
The major research questions are as follows:
1. How is the diffusion speed and rate for digital still camera in Korean market?
2. What are the relevant factors affecting diffusion, and the critical hints?
3. What is the demand diffusion model for digital still camera?
4. What are the successful diffusion strategy considering the diffusion model?
The major findings of this study to above questions are as follows:
1. The aspect of demand diffusion by stages:
Growth Stage will be started at the year of 1999(diffusion rate: 11%) and Maturity Stage will be started at 2003(diffusion rate: 72%).
2. The relevant factors affecting diffusion:
1) Manufacturer's marketing strategy
2) The influence and response of substitutes(35mm film camera, scanner)
3) The quality and price of complementary products(PC, printer, DP&E)
4) Innovation resistance factor of customers: Discontinuous innovation
5) Awareness of Digital Still Camera.
3. The demand diffusion model for digital still camera:
The model is composed of two contradictory parts(Obstacle factors and Accelerating factors) affecting the speed and rate of demand diffusion.
4. Successful diffusion strategy:
The strategies considering relevant factors are suggested in 7 parts.
1) Communication strategy for awareness raise
2) Development of new concept and usage for digital still camera
3) Product differentiation against substitutes
4) Strategic alliance with complementary product makers
5) Overcoming obstacle factors(difficult use) to innovation adoption
6) Marketing Strategy(Segmentation, Targeting, Positioning)
7) Efficient utilization strategy for company resources.
