Exam 14: Consumers and the Diffusion of Innovations

________ is a macro process concerned with the spread of a new product from its source to the consuming public.

Continuous innovation,dynamically continuous innovation,and discontinuous innovation are types of product innovations based on a ________ definition of innovation.

The ease with which a product's benefits or attributes can be observed,imagined,or described to potential consumers is the product's ________.

TABLE MINI CASE: Cynthia recently saw a new coffee table being offered by a popular furniture designer. She thinks the table would go nicely in her living room.Her friend, Steve, has very tasteful furniture in his home and seems to know quite a bit about furniture, so Cynthia asks Steve for advice about whether the coffee table would match the other design elements in her living room.Cynthia spends about three weeks thinking about it before she makes the decision to buy the table. -In the TABLE MINI CASE,the ________ is three weeks.

When a social system is ________ in orientation,innovations that are perceived as radical or as infringements on established customs are likely to be avoided.

CAR MINI CASE: Marksman Motors is a manufacturer of SUVs.In order to encourage consumers to consider a Marksman vehicle, Marksman dealerships offer an overnight test-drive, where consumers are able to drive the car for 24 hours to see if they like it.They have found the overnight test-drive to be especially popular with people who tend to adopt new ideas just after the average time and who approach innovations cautiously.Recently, in response to the popularity of other manufacturers' gas-electric hybrid SUVs, Marksman Motors has come out with a new model, the Evergreen, that has been sold in Germany for a year, but is the first gas-electric hybrid SUV to hit the U.S.market.In order to promote the Evergreen, the manufacturer sent a voucher to Car and Driver Magazine subscribers for a free 3-day test-drive of the Evergreen, to be used at local Marksman dealerships. -In the CAR MINI CASE,the Evergreen's gas-electric hybrid motor is considered a ________.

According to the firm-oriented definition of innovation,copies or modifications of a competitor's product qualify as new.

A ________ approach to defining innovation focuses on the features inherent in the product itself and on the effects these features are likely to have on consumers' established usage patterns.

Consumer innovators tend to display higher levels of social interaction and opinion leadership than noninnovators.

Carl needs a new cell phone,but when he goes to the store to purchase one,he finds himself to be flooded with such a confusing array of new products and product variations that he decides to just stick to his old phone instead.Carl has experienced ________.

________ is a micro process that focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product.

Identify and describe each of the five adopter categories.

Which of the following is true of the personality traits of consumer innovators?

COPY MINI CASE: Speedy Copy just opened a new store in South Hills Shopping Center.The store offers copy, fax, and binding services, and sells related office supplies.To encourage people to visit the store, Speedy Copy sends a flier to local homes and businesses with a coupon for using their services.In an attempt to discourage similar stores from opening in the surrounding shopping centers, Speedy Copy has priced its services to be very inexpensive, in the hopes that increased consumer purchase volumes will balance out the store's decreased profit margin. Ken works just down the street from South Hills Shopping Center and makes a point of visiting Speedy Copy on its opening day.He finds the store to be understaffed and under equipped to meet his needs and sends an e-mail to his friends at work, telling them that the store isn't worth visiting. -In the COPY MINI CASE,given that there are other copy centers in the market,the South Hills Speedy Copy store is considered "new" based on a(n)________ definition of innovation.

Consumer innovators provide other consumers with information and advice about new products,and those who receive such advice frequently follow it.

Innovative behavior can be an expression of an individual's need for uniqueness.The need for uniqueness allows an individual to distinguish himself by purchasing a rare item,which is a socially acceptable behavior.

Consumers are more likely to exhibit an inclination to innovate if their culture can be characterized by ________.

Gary saw an advertisement for a cool new version of the iPhone that is scheduled for release in 2 months.Gary is really excited about the new phone,but needs to wait an additional month after scheduled release for his current cellular service contract to expire so he can switch service providers to the one that offers the new iPhone.When his current service contract expires,Gary immediately switches service providers and purchases the iPhone.Gary's purchase time was ________.

A ________ approach to defining innovation judges the newness of a product in terms of how much exposure consumers have to the new product.

How quickly an innovation spreads through a market depends to a great extent on communications between the marketer and consumers,as well as communication among consumers.