Question 1

Which group of consumers tries to avoid change and rely on a product until they can't find it in the market and are forced to go without or change to something else?

Accepted Answer

Laggards are typically the last to adopt an innovation. They usually resist change and may only adopt a new product or technology when it becomes clear that the old one is no longer available or viable.

Question 2

As a promotion technique, samples are often used for new products when ________ will influence the diffusion of the product.

Accepted Answer

Samples are used for new products when trialability will influence the diffusion of the product. Trialability refers to the ease of trying out the product before fully committing to it. Providing samples allows consumers to try the product before purchasing, increasing the likelihood of adoption and diffusion.

Question 3

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars

Accepted Answer

SUVs were not compatible with European market conditions, including heavily taxed gasoline and smaller roads. As a result, automobile manufacturers did not distribute or promote them in Europe.

Question 4

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities.

Accepted Answer

Compatibility refers to the extent to which a product is consistent with existing cultural values, customs, practices, and infrastructures. Laptop computers, personal digital assistants, and cellular phones are all products that are compatible with the fast-paced business and personal lifestyles in the US, which is why they were readily accepted and diffused in the market.

Question 5

Kyle and Stan live in the United States. Kyle recently asked for Stan's cell phone number, but Stan said he didn't own a cell phone. Stan would probably be considered a(n)________ in the diffusion of innovation process.

Accepted Answer

Laggards are the last to adopt a new innovation, and not owning a cell phone in the United States today would be considered very late in the innovation adoption curve.

Question 6

The Apple iPod changed the way people listen to music but it also created an entirely new industry devoted to accessories such as cases, ear buds, docking stations, and speakers. The Apple iPod is considered a

Accepted Answer

The Apple iPod is considered a pioneer product because it introduced a new category of products (portable MP3 players) and created a new market for accessories that catered to the needs of iPod users. The iPod revolutionized the music industry and paved the way for other companies to create their own MP3 players and accessories.

Question 7

As soon as she saw one, Corinne wanted a curved-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Corinne is part of the ________ diffusion of innovation group.

Accepted Answer

Corinne waited until there were lower prices and improved quality, indicating that she was not an early adopter or innovator. However, she still adopted the technology relatively early compared to the majority of the population, placing her in the early majority group.

Question 8

The shape of the diffusion of innovation curve is described as

Accepted Answer

The diffusion of innovation curve is typically represented as a bell-shaped curve, with a gradual increase in the rate of adoption until it reaches a peak and then gradually decreases as the innovation becomes more widely adopted.

Question 9

The ________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.

Accepted Answer

The early majority is the crucial group in the diffusion of innovation because they make up a larger percentage of the population and are willing to adopt new products once they have been tested and proven. They tend to be more skeptical and require more evidence of a product's usefulness before committing to it, but once they do, their adoption creates a tipping point that makes widespread adoption more likely. Without the early majority, few new products would be able to achieve profitability.

Question 10

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n)________ in the MP3 player market.

Accepted Answer

Eiger Labs was a pioneer in the MP3 player market because it introduced the first mass-produced MP3 player, leading the way for others in the industry.

Question 11

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

Accepted Answer

The relative advantage of Apple's System 1 and Microsoft's Windows over the cumbersome and user-unfriendly DOS system made them much easier and more convenient to use, which led to their rapid diffusion among personal computer users.

Question 12

By the time BMW got into the mini-SUV market, sales of SUVs had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ adopters.

Accepted Answer

Late majority adopters are targeted when a product has become well-established in the market, and the initial surge of interest has begun to wane, which aligns with the scenario of entering a market where sales have leveled off or are declining.

Question 13

Many interior design businesses volunteer to provide their services for house-walk fundraisers because they know their design efforts will benefit from

Accepted Answer

Observability refers to the extent to which the results of an innovation or service are visible to others. In the context of interior design businesses volunteering for house-walk fundraisers, their design efforts are highly visible to attendees, which can lead to increased awareness and potential business opportunities.

Question 14

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their

Accepted Answer

Inkjet printers had a relative advantage over dot-matrix printers because they produced higher-quality prints and were quieter.

Question 15

The diffusion of innovation theory is useful to marketers in helping them

Accepted Answer

The diffusion of innovation theory helps marketers understand the adoption process of new products, allowing them to predict which types of customers (innovators, early adopters, etc.) will purchase the product at different stages.

Question 16

When Ken began helping his Aunt Rita with her finances, he discovered his aunt was still renting a rotary-dial telephone from the phone company. Aunt Rita had paid thousands of dollars in rental fees over the past 40 years. Aunt Rita is a(n)________ in the diffusion of innovation process for telephones.

Accepted Answer

Aunt Rita's behavior indicates that she is resistant to adopting new technologies and is among the last to do so, making her a laggard in the diffusion of innovation process.

Question 17

When microwaves were new, they typically cost over $300, were bulky and required extensive counter space, and had limited styles. Michelle and Will waited, wishing for more choices in the market. By the time they purchased a microwave, sales had leveled off and prices had declined significantly. Michelle and Will were part of the ________ diffusion of innovation group.

Accepted Answer

Michelle and Will waited until sales had leveled off and prices had declined significantly before purchasing a microwave, indicating they were part of the late majority group in the diffusion of innovation model. This group typically waits until a product has been well established and proven before making a purchase.

Question 18

Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers browse frames on Warby Parker's website and select five pairs they would like to try on. They can then choose to purchase or return the frames. Warby Parker handles all the shipping costs and provides all the return packaging. This relates to the ________ of its products.

Accepted Answer

The free, try-on at home program offered by Warby Parker allows customers to trial their eyewear before purchasing, which relates to the trialability of their products. Customers can select five frames to try on and then choose to purchase or return them, which demonstrates the ease of use and the trialability of Warby Parker's products.

Question 19

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy\use the product again. This is known as

Accepted Answer

Premarket testing involves giving a sample of the product to customers before it is officially launched in the market to gauge their interest and likelihood of purchasing or using the product again.

Question 20

Which adopter category refers to the last large group of buyers to enter a new product market?

Accepted Answer

The late majority refers to the last large group of buyers to enter a new product market. They tend to adopt new products just before the average person, and are cautious about trying out new technologies or products.

Quiz 12: Developing New Products