Question 1

Which group of adopters is typically between one and two standard deviations before the mean?

Accepted Answer

Early adopters are typically between one and two standard deviations before the mean.

Question 2

Which group of adopters is most likely to be intrigued by technology and eager to explore it?

Accepted Answer

Innovators are the group most likely to be intrigued by technology and eager to explore it, as they are the first to adopt new ideas and technologies.

Question 3

Which portion of the market is most likely willing to pay a lot of money for new technology products and services?

Accepted Answer

Innovators are the first group to adopt new technology and are willing to pay a premium for the latest products and services.

Question 4

As a group, what is the relative size of early adopters?

Accepted Answer

Early adopters are typically larger in number than innovators in the technology adoption lifecycle.

Question 5

Being successful with which group is an indication that the product will be successful with the majority of the market?

Accepted Answer

Early adopters are crucial as they influence the early majority, helping to bridge the gap between the initial market and the broader market, indicating potential success with the majority.

Question 6

Which segment of the market tends to adopt a new technology product slightly before the average for the market?

Accepted Answer

The early majority adopts new technology just before the average person in the market, following the innovators and early adopters.

Question 7

Which segment of the market comes before the average of the market and is most likely to want to see a whole product solution and a value proposition before buying?

Accepted Answer

The early majority comes before the average of the market and typically wants to see a whole product solution and a clear value proposition before making a purchase decision.

Question 8

Which segment of the market tends to adopt technology only after strong evidence shows that the value of adoption is greater than the cost of adoption and that other customers have adopted the technology successfully?

Accepted Answer

The late majority tends to adopt technology only after it has been proven to be beneficial and widely accepted by others. They are more skeptical and risk-averse compared to earlier adopters.

Question 9

For which segment of the market would it be most important to develop an advertising message emphasizing the reliability and low cost of the product?

Accepted Answer

Laggards are typically more conservative and price-sensitive, valuing reliability and low cost over innovation.

Question 10

Individuals in which group will often only adopt a product when the alternatives to adoption are no longer available?

Accepted Answer

Laggards are the last group to adopt a product and often do so only when there are no other alternatives available. They are typically resistant to change and prefer traditional methods.

Question 11

Why is understanding the typical pattern of adoption of new products and services important?

Accepted Answer

Understanding the adoption pattern helps businesses tailor their promotional strategies to target different customer segments effectively, maximizing the product's market penetration.

Question 12

Which segment of the market would be least sensitive to the price of your product?

Accepted Answer

Innovators are typically the least sensitive to price as they are eager to try new products and are willing to pay a premium for the latest innovations.

Question 13

How is the S-shaped cumulative adoption curve created?

Accepted Answer

The S-shaped cumulative adoption curve is created by taking the integral of the bell curve, which represents the rate of adoption over time.

Question 14

What can be told about the financial attractiveness of a market by examining the cumulative adoption S-curve?

Accepted Answer

In the second stage of the product life cycle, revenues typically rise faster than costs as the product gains market acceptance, leading to increased profit margins.

Question 15

What is most likely to be occurring if new customers are focused on the value proposition from purchasing your product or service or care a lot about ancillary attributes of your product package?

Accepted Answer

The focus on value proposition and ancillary attributes suggests that the product is gaining traction and appeal, indicating the take-off stage where growth accelerates.

Question 16

As discussed by Geoffrey Moore, where is the chasm located?

Accepted Answer

The chasm is located between the early adopters and the early majority in the technology adoption lifecycle, as described by Geoffrey Moore.

Question 17

What type of marketing strategy involves focusing on customers in a single industry?

Accepted Answer

Vertical marketing strategy involves focusing on customers within a single industry, tailoring products and services to meet the specific needs of that industry.

Question 18

What type of marketing strategy involves serving customers in multiple industries at the same time?

Accepted Answer

A horizontal marketing strategy involves serving customers across multiple industries simultaneously, rather than focusing on a single industry or vertical market.

Question 19

Why is it important to estimate the demand for your new products or services?

Accepted Answer

Estimating demand is crucial as it helps in avoiding underproduction, projecting future costs by understanding economies of scale, and determining the payback period on investments, making all the options important.

Question 20

What term refers to the rate at which a new technology product becomes adopted by potential users?

Accepted Answer

Diffusion refers to the process by which a new technology or innovation is adopted and spread among users or markets.

Quiz 3: Technology Adoption and Diffusion