Exam 14: Consumers and the Diffusion of Innovations

The term ________ is used to describe the situation in which the increase in information and options available to the consumer is so great that it seriously impairs decision making.

A consumer is being ________ when he or she uses a previously adopted product in a novel or unusual way,or very extensively.

The automobile,which revolutionized the way people got from one place to the other,was an example of a ________.

A ________ is a physical,social,or cultural environment to which people belong and within which they function.

The first set of people who purchase a new product are called early adopters.

Identify and give examples of what happens during each of the five stages of the adoption process.

________ refers to the amount of time that elapses between consumers' initial awareness of a new product or service and the point at which they purchase or reject it.

Innovators,early adopters,early majority,late majority,and laggards are all ________.

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 overnight test-drive is especially popular with members of the ________ adopter category.

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,Speedy Copy is employing a(n)________ by offering very low prices to discourage market entry by competitive firms.

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 is considered a "new" product based on a(n)________ definition of product innovation.

Trying to market a depilatory cream to men as an alternative to shaving would be very difficult due to a lack of ________ between the cream and men's existing shaving routines.

Many software companies allow customers to use limited versions of their software free for 30 days.This strategy tries to increase the diffusion of a new product through increasing ________.

Consumer innovators are low-risk perceivers.

According to recent research,effective promotional strategy for a new product that is to be immediately adopted should focus on ________.

In general,the diffusion of products worldwide is becoming a more rapid phenomenon.

Define and give examples of the five product characteristics that influence the diffusion of innovation.

Discuss the attitude of the consumer innovator toward risk.

Communication among consumers is known as ________.

The ________ constitutes the first half of the "mass market" of consumers who would purchase a somewhat-established product.