The ability to estimate consumer acceptance of new products is critical. Market penetration forecasting provides vital input into decisions affecting sales, capital outlays, credit, plant expansion, budgeting, inventory control, production scheduling, marketing strategies and financial planning.
Innovators have great importance in the early stages of new product adoption.
Innovators decide to adopt an innovation independently of others, and will spread the idea to ultimate users or adopters. The characteristics of the innovation also affect its rate of adoption. Some products catch on almost overnight, whereas others take a long time to gain acceptance.