Technology consumers in Australia : Early adopters or relative laggards?

Diffusion of innovations refers to the process whereby a new product, service or idea spreads through a population. The rate at which a product diffuses varies and is to a large extent dependent upon the speed with which it is embraced by the “early adopters”. Early adopters have a mindset which is characterised by a willingness to deviate from social norms and a more favourable attitude towards change. These people are also typically more socially connected, have more formal education, and have greater rationality.

It has been suggested that Australians are early adopters of technology products and services, relative to other developed countries, but is this fact or fiction?

Are Australian consumers quicker to reach a high level of ownership and usage of technology-based products or services, and are they truly more welcoming of innovation?

Although the rapid uptake of technology such as DVD players would suggest that Australians are in fact near the forefront of technology adoption, Australian consumers appear to be inconsistent in their willingness to adopt new technology compared to other countries regarded as early adopters of technology products (e.g. Japan ). The slow penetration rates of innovations such as widescreen televisions and digital set top boxes suggest that perhaps Australian consumer behaviour is motivated by something other than the mindset of an early adopter and that their selection criteria is based more upon practical factors such as price and a product’s relative advantage over present alternatives.

Australian consumers certainly do not appear to be chasing the latest technology the way a true early adopter would. For instance, LCD TVs (a premium, advanced, but expensive product) were considered a new technology in 2005 and had only been adopted by 7% of the Australian market; a relatively sluggish rate of acceptance when compared to the US (16%), Europe (23%), and particularly Japan (50%)[1]. Furthermore, recent TV sale data from GfK indicate that the Australian market is less driven by high-end European/Japanese brands (30%) than continents such as Europe (56%).

It would appear that whilst Australian consumers do indeed adopt some technologies fast (e.g. DVD players), these trends are more indicative of a product’s relative practical advantages and affordability, rather than a true desire to live on the cutting edge of technology.

For further information please contact:

David Griffin                          GfK Australia                                      02 9900 2880