Question 1

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
A) relative advantage.
B) compatibility.
C) observability.
D) associated services.
E) trialability.

Accepted Answer

The relative advantage of System 1 and Windows over the previous DOS system made them more appealing to users, which resulted in their rapid diffusion. The other factors listed (compatibility, observability, associated services, and trialability) may have played a role in their adoption, but the relative advantage was the most significant factor.

Question 2

When microwaves were new,they often cost over $300,were huge,and had numerous settings and options.Brenda and Bart waited,concerned about potential health hazards and wishing for more choices in the market.By the time they purchased a microwave,sales of microwaves had leveled off and prices had declined significantly.Brenda and Bart were part of the ___________ diffusion of innovation group.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Brenda and Bart waited until sales of microwaves had leveled off and prices had declined significantly, indicating they were part of the late majority group, which adopts an innovation after the average member of the society.

Question 3

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.
A) relative positioning
B) compatibility
C) observability
D) complexity
E) trialability

Accepted Answer

Compatibility refers to the degree to which an innovation is perceived as consistent with existing values, past experiences, and needs of potential adopters. The statement mentions that laptop computers, personal digital assistants, and cellular phones were readily accepted in U.S. markets because they were compatible with the faster-paced business and personal lifestyles of Americans.

Question 4

Bob and George live in the United States.Bob recently asked for George's cell phone number,but George said he didn't own a cell phone.George would probably be considered a(n)__________ in the diffusion of innovation process.
A) innovator
B) laggard
C) late majority adopter
D) early majority adopter
E) early adopter

Accepted Answer

A laggard is someone who is slow to adopt new technologies and ideas, and doesn't necessarily see the value in them. Since George doesn't own a cell phone, it's likely that he is resistant to adopting this technology, making him a laggard in the diffusion of innovation process.

Question 5

Which of the following is least likely to be a source of ideas for new products?
A) R&D efforts
B) licensing agreements
C) consumer research
D) geodemographic segmentation
E) brainstorming

Accepted Answer

Geodemographic segmentation is a technique that classifies consumers based on their location and demographics, it is not specifically focused on generating ideas for new products. The other options (R&D, licensing agreements, consumer research, and brainstorming) are all common sources of new product ideas.

Question 6

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
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.

Accepted Answer

Inkjet printers had a relative advantage over dot-matrix printers because they could produce higher quality prints with less noise and less impact on the paper. This made them more desirable to consumers and businesses. Compatibility, observability, complexity, and trialability may have also contributed to inkjet printers' success, but their relative advantage was the primary driver.

Question 7

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
A) provided equivalent relative advantage for both European and U.S.customers.
B) was not compatible with European market conditions.
C) did not provide benefits that were observable.
D) involved technology that was too complex.
E) could not be easily tried by consumers.

Accepted Answer

European market conditions were not compatible with the large size and high fuel consumption of SUVs, making it difficult for manufacturers to distribute and promote them effectively in Europe.

Question 8

For new product marketers,early adopters are important because they tend to be
A) few in number.
B) the first to adopt a new product.
C) opinion leaders.
D) fond of prototypes.
E) alpha testing enthusiasts.

Accepted Answer

The answer of For new product marketers,early adopters are important...

Question 9

The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The early majority diffusion of innovation group is crucial because they represent a large portion of the population and tend to wait for the opinions and experiences of the early adopters before adopting new products. Without the early majority buying the product, it is difficult for it to become profitable.

Question 10

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.

Accepted Answer

Observability refers to the degree to which the results of an innovation or product are visible to others. By participating in tours-of-homes fundraisers, home design businesses can showcase their latest products to potential customers, making the benefits and appeal of these products more observable to a wider audience. This visibility can increase interest and demand for their products.

Question 11

Zappos.com,an online shoe store,offers an easy,no-hassle return procedure.This relates to the _______ of its products.
A) relative advantage
B) compatibility
C) observability
D) complexity
E) trialability

Accepted Answer

Zappos.com's easy and no-hassle return procedure allows customers to easily try out their products, which relates to the trialability aspect of the product.

Question 12

In the product development process,what takes place between concept testing and market testing?
A) securing financial backing
B) conducting marketing research
C) brainstorming
D) determining potential ROI
E) performing product development

Accepted Answer

Between concept testing and market testing, product development takes place. This is the stage where the actual design and creation of the product occur, including prototyping, testing, and finalizing the product before it is launched into the market. While securing financial backing, conducting marketing research, brainstorming, and determining potential ROI are important steps in the product development process, they typically occur earlier on and are necessary to get to the stage of product development.

Question 13

As it pertains to the diffusion of innovation,if the __________ group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The early adopter group plays a crucial role in the diffusion of innovation process. They are the ones who adopt the innovation after the innovators and help spread the word, influencing the early majority and subsequent groups. If the early adopter group is small, it limits the innovation's exposure and acceptance, likely resulting in fewer overall adopters.

Question 14

By the time BMW got into the mini-SUV market,sales had leveled off and were even starting to decline.BMW had to target its marketing efforts toward the __________ diffusion of innovation group.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The late majority group represents the largest percentage of the population and is characterized by the adoption of innovations after they have become mainstream. As sales of mini-SUVs had already peaked and were beginning to decline, BMW would need to target the late majority in order to increase sales. This group tends to be skeptical of new products and requires more evidence of their value and usefulness before adopting them.

Question 15

As soon as she saw one,Hillary wanted a flat-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.Hillary is part of the __________ diffusion of innovation group.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Hillary waited for alternatives with lower prices and improved quality, indicating that she did not want to be too early in adopting the innovation. Therefore, she belongs to the early majority group.

Question 16

As a promotion technique,samples are often used for new products when __________ will influence the diffusion of the product.
A) relative advantage
B) compatibility
C) observability
D) complexity
E) trialability

Accepted Answer

Samples are given to allow customers to try the product, which is a form of trialability. This is especially important for new products because it allows potential customers to experience the benefits, which influences the diffusion or adoption of the product. Factors such as relative advantage, compatibility, observability, and complexity may also play a role in the diffusion of the product, but they are not the primary reason for using samples as a promotion technique.

Question 17

Robin recently bought Voice over Internet Protocol (VoIP)phone service.A few of Robin's friends bought VoIP before she did,but many other friends were interested in Robin's opinions of the new phone service.Robin is a(n)__________ in this product category.
A) innovator
B) laggard
C) late majority adopter
D) early majority adopter
E) early adopter

Accepted Answer

The answer of Robin recently bought Voice over Internet Protocol...

Question 18

When John began helping his favorite uncle Burton with his finances,he discovered his uncle was still renting a rotary-dial telephone from the phone company.Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years.Uncle Burton is a(n)__________ in the diffusion of innovation process for telephones.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Uncle Burton's behavior of continuing to rent a rotary-dial telephone for 40 years indicates that he is resistant to change and holding onto old technology, making him a laggard in the diffusion of innovation process for telephones.

Question 19

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The late majority is the last large group of consumers to adopt a new product or service, following the early majority.

Question 20

The diffusion of innovation theory is useful to marketers in helping them
A) adjust to the performance life cycle.
B) avoid the cost of concept testing.
C) predict which types of customers will buy their product immediately and later.
D) predict how long it will take for a new product to gain market acceptance.
E) determine a target market.

Accepted Answer

The answer of The diffusion of innovation theory is useful...

Quiz 12: Developing New Products

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

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.

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

Which of the following is least likely to be a source of ideas for new products?

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

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

For new product marketers,early adopters are important because they tend to be

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

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

Zappos.com,an online shoe store,offers an easy,no-hassle return procedure.This relates to the _______ of its products.

In the product development process,what takes place between concept testing and market testing?

As it pertains to the diffusion of innovation,if the __________ group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.

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

As soon as she saw one,Hillary wanted a flat-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.Hillary is part of the __________ diffusion of innovation group.

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

Robin recently bought Voice over Internet Protocol (VoIP) phone service.A few of Robin's friends bought VoIP before she did,but many other friends were interested in Robin's opinions of the new phone service.Robin is a(n) __________ in this product category.

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service.

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