If some consumers are 'first adopters', that is, they value having the latest technology products, a firm introduces new products because:
A)its competitors will not develop similar products.
B)its older models have stopped selling.
C).it wants to improve existing models.
D)by introducing new features, it can increase the demand for new models.

Question

Quizplus · Accepted Answer

The introduction of new features in a product can increase the demand for the new models, especially for consumers who value having the latest technology products, the 'first adopters'. Therefore, firms introduce new products to capture this segment of the market and stay competitive. Option A is incorrect because competitors may develop similar products, and not introducing new products can result in losing market share. Option B is incorrect because the firm may still be selling its older models, but introducing new products can prevent sales from declining. Option C is incorrect because improving existing models may not be enough to capture the attention of consumers who value having the latest technology products.

If Some Consumers Are 'First Adopters', That Is, They Value