Fiona's company wants to launch a new product in Madrid. Fiona requests her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences prevalent there before introducing the product. Here, Fiona tires to reduce the degree of economic and social risks, also known as _____, associated with product use.
A) billability
B) docibility
C) invincibility
D) trialability
E) partibility

Question

Quizplus · Accepted Answer

Introducing samples in the new European market even before actually introducing the product will help Fiona gauge the trialability (social and economic risks) of her company's product in the new market. There are five characteristics of an innovation that can assist in determining the rate of acceptance or resistance of the market to a product. A product's (1) relative advantage (the perceived marginal value of the new product relative to the old), (2) compatibility (its compatibility with acceptable behavior, norms, values, and so forth), (3) complexity (the degree of complexity associated with product use), (4) trialability (the degree of economic and/or social risk associated with product use), and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance.

Fiona's Company Wants to Launch a New Product in Madrid