The Use of Information Cascades in the Adoption of New Farming Techniques
In class, we discussed how a decision between Options A and B can be swayed by the opinions of close friends and family. An individual is more likely to choose one option over another if people that he or she holds in high regard have chosen said option. Information cascades can be used when making many choices, from choosing where to eat, to deciding where to attend college or graduate school. One application in many rural communities is the adoption of new farming techniques and technologies.
“The Diffusion Process,” a paper by George M. Beal and Joe M. Bohlen, examines studies done in the 1950’s regarding the adoption of new farming techniques and technologies throughout rural communities. Beal and Bohlen found that there were 5 stages in the diffusion process of a new idea. Stage 1 is awareness, in which an individual first hears of a new idea, but does not know much more than the name or general purpose. Stage 2 is interest, where the individual hears enough about an idea or item to feel the need to find more information. Stage 3 is evaluation, by which the individual asks him or herself whether application of the new idea would be feasible, and whether or not the benefits would outweigh the costs. Stage 4 is the trial of the item, in which the individual physically tests the new idea, usually on a smaller scale. Individuals usually go thorugh the testing stage even when they have spent much time in the first 3 stages, because they want to make sure that the information they have garnered is correct. The last stage, Stage 5, is the adoption stage, where the individual utilizes the new item to the fullest extent of his or her abilities.
Beal and Bohlen noticed something interesting regarding the sources of information for each of the stages. For Stages 1 and 2 (awareness and interest), individuals tended to hear about new ideas and items through the mass media. This makes sense, because when there are new products on the market, companies try their best to advertise them to the group that would most need the item (in this case farmers). However, once individuals reach the evaluation stage, their main source of information becomes their friends and neighbors. People know that the media’s goal is to get them to buy the item, but they trust their friends and neighbors to give them an honest opinion of a product. Individuals relied on their friends for the trial an adoption stages too, because they knew they could get honest feedback regarding items. It is interesting to note that government agencies were consistently ranked 2nd for sources of information, and salesmen were ranked last. Individuals in rural communities knew they could get additional information on products from the government, but it is not the most easily accessible information, and not always as trustworthy as information from friends. Salesmen were trusted the least, because people realize their only goal is to sell the product. Salesmen were only used for technical information (operating new machinery for example), since that is their area of expertise.
This example of farmers in rural communities can be extrapolated to many other situations. For example, when the newest iPod comes out, you may feel an urge to buy it because it’s advertised through all the different media outlets. However, if your friend buys one and complains about it all the time, you may be much less likely to purchase one. Your friends and family are the ones you trust the most, so you have learned to value their opinions.
-B.D.