Technology Life Cycle Theory is a model showing how a new product is penetrated
in a market. It is proposed by Geoffrey Moore.
This theory shows how customer segment changes when a product is penetrated in a market by dividing customers into 5 segments.
They always search new technologies. They are interested in innovative products or entirely new technologies and buy them before full-scale marketing.
They also buy innovative products in earlier stage of life cycle like Innovators, but they are interested in advantages of new technologies.
They are interested in practicality rather than technologies. They carefully search whether other companies adopt a technology or not before they buy it. It is said that Early Majority accounts for one third of customers so success of a new technology depends on how Early Majority is made to have interest in it.
They are follower of Early Majority. They are interested in whether a technology is based on de facto standard or whether the company can kindly support it. It is said that Late Majority also accounts for one third of customers.
They hate high technology. They buy it high technology only when it is invisibly assembled into a product.
Ratio of each segment
Early Adopter 13.5%
Early Majority 34%
Late Majority 34%
There is Chasm between Early Adopter and Early Majority because Early Adopter uses a new technology for innovation but Early Majority uses a new technology to improve productivity of current operation. It is important to go over Chasm to penetrate a new technology.