In 1962 sociologist Everett Rogers published the well-known book Diffusion of Innovations in which he classified consumers in the following five groups: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards.
Adoption Curve. Source: Business-to-you
Since its creation, the above chart has become widely used among many industries, although new technologies have better synthesized such research. The graphic flawlessly describes how each group's psychological profile reflects on consumer habits and how they approach innovative products and services. One of the most important areas to note is the clear breaking point known as the chasm.
Consumer preferences widely vary
This gap between early adopters and the early majority exists because consumers prefer to listen and copy references from their group. This leap represents the transition to a mainstream market and bears many similarities to current cryptocurrencies life cycle.
Therefore, crossing the chasm is of utter importance for any product or service willing to serve a more pragmatism client base.
Geoffrey A. Moore's book, Crossing the Chasm, states that to surpass the void the product should offer a complete solution, provide a high service level to entice pragmatists and establish a strong word-of-mouth reputation.
Smartphone growth provides a great example Global smartphone sales (millions). Source: Statista
Even though smartphones are a household name now, their growth over the first two years of this industry averaged a mere 20% per year. Over the subsequent five years, a 50% growth rate indicated that the technology had moved a much wider group of users.
Apple's iPhone was launched in June 2007, selling over 300,000 units in the first weekend, while the iPhone 3G came one year later and set a record of 1 million units sold in its debut weekend.
In such a scenario, one would expect a steady and healthy price chart for Apple (AAPL) during that period, but that's not what happened.
Apple (AAPL) price
As shown above, ...