Early Adopter

AAA

DEFINITION of 'Early Adopter'

An individual or business who uses a new product or technology before others. An early adopter is likely to pay more for the product than later adopters, but accepts this premium if using the product improves efficiency, reduces cost, increases market penetration or simply raises the early adopter's social status. Companies rely on early adopters to provide feedback about product deficiencies, and to cover the cost of the product's research and development.

INVESTOPEDIA EXPLAINS 'Early Adopter'

The rate of diffusion, or adoption, of a new product by the market at large can vary according to the type of product and its price. Early adopters in the business world face a high level of risk in that they are using a product or technology that may not be perfected, and which may not work with the products used by suppliers and customers or may not be compatible with other products they own.

RELATED TERMS
  1. Obsolescence Risk

    The risk that a process, product or technology used or produced ...
  2. Late Majority

    The last sizable segment of a population to adopt an innovative ...
  3. Early Majority

    The first sizable segment of a population to adopt an innovative ...
  4. Bleeding Edge

    A product or service that is so new it has not been widely adopted ...
  5. Tech Street

    A term used in the financial markets and the press to refer to ...
  6. Silicon Valley

    A part of the San Francisco Bay Area that is known for the many ...
RELATED FAQS
  1. What are the most common operating expenses for an online business?

    Online businesses differ in operating needs and expenses but incur many of the same costs that other businesses do. Calculating ... Read Full Answer >>
  2. What are the four types of economic utility?

    The four types of economic utility are form, time, place and possession. "Utility" in this context refers to the value, or ... Read Full Answer >>
  3. How can investors in the Internet sector most directly profit from the growth of ...

    Investors in the Internet sector can most directly profit from the growth of e-commerce by investing in the common stock ... Read Full Answer >>
  4. What's the best-selling iPhone model of all time?

    Apple's iPhone 6 and its larger cousin the iPhone 6+ are the bestselling iPhone models of all time, with the iPhone 6 coming ... Read Full Answer >>
  5. What are some examples of companies that are Value-Added Resellers?

    Among the most common value-added resellers are computer retailers and service companies, automobile dealerships and furniture ... Read Full Answer >>
  6. What is the difference between a quarter and a year in finance?

    Companies have two main accounting or financial reporting periods: the fiscal quarter and the fiscal year. The fiscal year ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    How The Power Of The Masses Drives The Market

    Market psychology is an undeniably powerful force. Find out what you can do about it.
  2. Entrepreneurship

    The 10 Greatest Entrepreneurs

    These 10 entrepreneurs' names will live on long into the future - perhaps even after their enterprises are gone.
  3. Economics

    5 Steps Of A Bubble

    Bubbles are deceptive and unpredictable, but by studying their history we can prepare to our best ability.
  4. Active Trading

    Sorting Out Cult Stocks

    Is that crazy product going to be the next big thing? Learn how to evaluate these companies here.
  5. Personal Finance

    How Agile Project Management Changed Zara

    Zara has created a competitive advantage in the retail industry by using a supply chain centered on agile project management.
  6. Investing

    Using Technology To Tune Out Market Noise

    Today’s technology-centric culture allows us to have access to information anytime. As investors, we can be informed of market moving news as it happens.
  7. Economics

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  8. Mutual Funds & ETFs

    This ETF Can Weather Any Market Condition

    Looking for a winning ETF that's capable of performing in almost any environment?
  9. Personal Finance

    Watch Out For These Top Internet Scams

    The Internet had make it easier than ever for scammers to trick people into giving away their money and personal information. These are the scams to avoid.
  10. Personal Finance

    Why Are Tesla Cars So Expensive?

    What makes Tesla cars so expensive? Short supply and pricey parts is a good place to start.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center