Deck 14: Consumers and the Diffusion of Innovations

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Question
The process of ________ is concerned with how innovations spread.

A) innovation
B) adoption
C) success
D) diffusion
E) influence
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Question
A ________ requires consumers to adopt new behavior patterns.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Question
A ________ approach to defining innovation judges the newness of a product in terms of how much exposure consumers have to the new product.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Question
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.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Question
Fizzy Cola just came out with a cherry-flavored cola.Fizzy Cherry is not the first cherry-flavored cola on the market,but it is still considered to be new,based on a ________ approach to defining innovation.

A) product-oriented
B) market-oriented
C) firm-oriented
D) communications-oriented
E) consumer-oriented
Question
While Q-tips are advertised for cleaning ears or removing eye make-up,Bill has found that they are also perfect for cleaning dust out of the crevices of his model cars.Bill's use of Q-tips constitutes ________.

A) use innovativeness
B) purchase innovativeness
C) market innovativeness
D) compatibly innovativeness
E) incompatibly innovativeness
Question
Communication among consumers is known as ________.

A) word-of-mouth communications
B) surrogacy
C) mavenship
D) cohort selling
E) peer advertising
Question
Digital cameras and digital video recorders were somewhat disruptive to consumers,but did not change the basic behavior patterns established with photography and film.These are best described as ________.

A) discontinuous innovations
B) dynamically discontinuous innovations
C) dynamically continuous innovations
D) statically continuous innovations
E) continuous innovations
Question
A ________ approach to defining innovation treats newness from the perspective of the company producing or marketing it.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Question
A ________ involves the introduction of a modified product rather than a totally new product,and has the least disruptive influence on established patterns.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Question
________ is a macro process concerned with the spread of a new product from its source to the consuming public.

A) Adoption
B) Assumption
C) Diffusion
D) Innovation
E) Introduction
Question
The automobile,which revolutionized the way people got from one place to the other,was an example of a ________.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Question
Under the ________ approach to defining innovation,copies or modifications of a competitor's product would qualify as new.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Question
The Gillette Fusion razor blade,which has four blades instead of three or two,is best described as a ________.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Question
A ________ is somewhat disruptive to consumers but does not alter established behavior patterns.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Question
The first people to purchase a new product are considered ________.

A) consumer innovators
B) nonadopters
C) laggards
D) trial drivers
E) test consumers
Question
A ________ approach to defining innovation considers a "new" product to be any product that potential consumers judge to be new.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Question
A consumer is being ________ when he or she uses a previously adopted product in a novel or unusual way,or very extensively.

A) use innovative
B) purchase innovative
C) market innovative
D) compatibly innovative
E) incompatibly innovative
Question
________ is a micro process that focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product.

A) Adoption
B) Assumption
C) Diffusion
D) Innovation
E) Introduction
Question
According to the ________ approach to defining innovation,products are considered new if they have been purchased by a relatively small percentage of the potential market or if they have been on the market for a relatively short period of time.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Question
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 ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
The degree to which a new product can be tried on a limited basis is known as ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
The ease with which a product's benefits or attributes can be observed,imagined,or described to potential consumers is the product's ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
The degree to which potential consumers feel a new product is consistent with their present needs,values,and practices is a measure of its ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
Continuous innovation,dynamically continuous innovation,and discontinuous innovation are types of product innovations based on a ________ definition of innovation.

A) product-oriented
B) market-oriented
C) firm-oriented
D) communications-oriented
E) consumer-oriented
Question
________ refers to the degree to which a new product is difficult to understand or use.

A) Relative advantage
B) Compatibility
C) Complexity
D) Trialability
E) Observability
Question
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 ________.

A) postpurchase dissonance
B) innovation overload
C) market mavenism
D) trialability
E) viral marketing
Question
A ________ is a physical,social,or cultural environment to which people belong and within which they function.

A) social hub
B) trial
C) social system
D) market
E) innovation
Question
The development of MP3 players,when consumers were used to listening to their music on CD or cassette tape players,constitutes ________.

A) discontinuous innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Question
________ is the most widespread concern of consumer innovators when it comes to innovation in high-tech consumer products.

A) Relative advantage
B) Compatibility
C) Complexity
D) Trialability
E) Observability
Question
The development of small cassette players that users could easily carry with them,instead of having to play their music on stationary pieces of equipment,constituted ________.

A) discontinuous innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Question
When a social system is ________ in orientation,innovations that are perceived as radical or as infringements on established customs are likely to be avoided.

A) outward
B) antiquated
C) modern
D) traditional
E) inward
Question
Although consumers can carry beepers so that their business offices or families can contact them,a cellular telephone enables users to be in nearly instant communication with the world and allows users to both receive and place calls.This is known as the ________ of cellular phones.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
Trendy items such as fashion accessories tend to diffuse more easily than products used in private because fashion accessories have greater ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
Hershey has traditionally made its Kisses from solid milk chocolate.When Hershey came out with Kisses with almonds in them,this constituted ________.

A) discontinuous innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Question
The acceptance of such convenience foods as frozen French fries,instant puddings,and microwave dinners,which are simple to understand and use,is generally due to their minimal ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
When a social system is ________ in orientation,the acceptance of innovations is likely to be high.

A) outward
B) antiquated
C) modern
D) traditional
E) inward
Question
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) postpurchase dissonance
B) innovation overload
C) market mavenism
D) trialability
E) viral marketing
Question
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.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
The degree to which potential customers perceive new product as superior to existing substitutes is its ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
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) 5 months
B) 4 months
C) 3 months
D) 2 months
E) 1 month
Question
The ________ category tends to perceive little risk in adopting new products.These consumers are even willing to pay high prices for newly-introduced products because they enjoy being the first to own them.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
Innovators,early adopters,early majority,late majority,and laggards are all ________.

A) adopter categories
B) diffusion stages
C) communications theories
D) marketing strategies
E) innovation strategies
Question
Which of the following characteristics typify a modern social system?

A) an unskilled labor force
B) members of the system rarely interact with outsiders
C) members see themselves as locked into a single role
D) a general respect for education and science
E) an emphasis on emotional social relationships
Question
The ________ constitutes the first half of the "mass market" of consumers who would purchase a somewhat-established product.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
The members of the ________ category of adopters take a relatively long time to evaluate whether or not they would benefit from owning a product and,most likely,perceive more risk in all consumption situations than members of the preceding adopter groups.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
Awareness,interest,evaluation,trial,and adoption/rejection are the five stages of ________.

A) adopter categorization
B) purchase time
C) the adoption process
D) buyer behavior
E) social systems
Question
Which of the following is true of the personality traits of consumer innovators?

A) they tend to be inner-directed
B) they are highly dogmatic
C) they have a high need for conformity
D) they tend to be brand loyal
E) they have low optimum stimulation levels
Question
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's direct-mail campaign attempts to enhance ________ in order to speed the diffusion of the use of its store.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Question
The ________ is likely to buy a new product within a short period of time of introduction,although these consumers are not likely to be among the first group to buy the product.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
The members of the ________ category of adopters are the very last consumers to purchase a new product.They are generally high risk-perceivers and the last ones to recognize the value of innovative products.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
________ 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.

A) Purchase time
B) Adoption time
C) Innovation time
D) Diffusion time
E) Consumer duration
Question
Consumers are more likely to exhibit an inclination to innovate if their culture can be characterized by ________.

A) a high power distance
B) strong uncertainty avoidance
C) value for hierarchical relationships
D) a willingness to accept uncertainty
E) a cultural value for high earnings, achievement, and assertiveness
Question
According to recent research,effective promotional strategy for a new product that is to be immediately adopted should focus on ________.

A) how to deal with the constraints of adoption, such as switching costs
B) the desirable reasons for adoption
C) how popular the product is likely to be
D) the performance of the product
E) how many units of the product have already been sold
Question
When a product is first introduced,the ________ consider purchasing it to be risky because it is new.After a relatively small but not insignificant number of consumers purchased the product (and probably after the price has gone down),they conclude that purchasing the product is wise.

A) innovators
B) early adopters
C) early majority
D) late majority
E) laggards
Question
The ________ is concerned with how long it takes a new product or service to be adopted by members of a social system.

A) adopter category
B) purchase time
C) social system
D) rate of adoption
E) evaluation
Question
Which of the following is true of the demographics of consumer innovators?

A) they tend to be older than noninnovators
B) they have less formal education
C) they have higher personal or family incomes
D) they are likely to have lower occupational status
E) they tend to be more downscale than other consumer segments
Question
A(n)________ involves first making a new product available at a very high price to consumers who are willing to pay top dollar,and then gradually lowering the price in a stepwise fashion to attract additional market segments at each price reduction plateau.

A) adopter categorization
B) adoption process
C) penetration policy
D) skimming policy
E) social system
Question
A(n)________ involves setting a relatively low introductory price designed to discourage competition from entering the market.

A) adopter categorization
B) adoption process
C) penetration policy
D) skimming policy
E) social system
Question
The ________ is the earliest consumer to buy a new product.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
All new products have an equal potential for consumer acceptance.
Question
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.
At the end of the COPY MINI CASE,Ken has reached the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Question
According to the firm-oriented definition of innovation,copies or modifications of a competitor's product qualify as new.
Question
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.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
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 designed to encourage consumers to reach the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Question
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.

A) skimming policy
B) crowding policy
C) anticompetitive policy
D) standardization policy
E) penetration policy
Question
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.
Question
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,when Cynthia first sees the new coffee table,she is at the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Question
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.

A) product-oriented
B) consumer-oriented
C) market-oriented
D) output-oriented
E) firm-oriented
Question
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,when Cynthia ultimately decides that she really likes the table and buys it,she is at the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Question
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.

A) adopter category
B) communication flow
C) rate of adoption
D) skimming policy
E) purchase time
Question
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.

A) firm-oriented
B) product-oriented
C) market-oriented
D) adoption-oriented
E) consumption-oriented
Question
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,when Cynthia thinks the table would go nicely in her living room and seeks Steve's opinion,she is at the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Question
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 new table style is an example of a ________.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) statically continuous innovation
D) dynamically continuous innovation
E) continuous innovation
Question
A particular innovation may diffuse differently throughout different cultures.
Question
There is no universally accepted definition of the terms product innovation or new product.
Question
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 ________.

A) continuous innovation
B) circular innovation
C) dynamically continuous innovation
D) direct innovation
E) discontinuous innovation
Question
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,by sending a voucher specifically to Car and Driver subscribers,Marksman Motors is trying to get ________ to try the Evergreen.

A) market mavens
B) laggards
C) consumer innovators
D) viral marketers
E) surrogate buyers
Question
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,Ken makes a point of trying the new store on its opening day.This makes Ken a(n)________.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Question
Use innovativeness involves meeting an old need with a new product specifically designed for that purpose.
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Deck 14: Consumers and the Diffusion of Innovations
1
The process of ________ is concerned with how innovations spread.

A) innovation
B) adoption
C) success
D) diffusion
E) influence
D
2
A ________ requires consumers to adopt new behavior patterns.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
A
3
A ________ approach to defining innovation judges the newness of a product in terms of how much exposure consumers have to the new product.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
B
4
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.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
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5
Fizzy Cola just came out with a cherry-flavored cola.Fizzy Cherry is not the first cherry-flavored cola on the market,but it is still considered to be new,based on a ________ approach to defining innovation.

A) product-oriented
B) market-oriented
C) firm-oriented
D) communications-oriented
E) consumer-oriented
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6
While Q-tips are advertised for cleaning ears or removing eye make-up,Bill has found that they are also perfect for cleaning dust out of the crevices of his model cars.Bill's use of Q-tips constitutes ________.

A) use innovativeness
B) purchase innovativeness
C) market innovativeness
D) compatibly innovativeness
E) incompatibly innovativeness
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Unlock for access to all 109 flashcards in this deck.
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7
Communication among consumers is known as ________.

A) word-of-mouth communications
B) surrogacy
C) mavenship
D) cohort selling
E) peer advertising
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
8
Digital cameras and digital video recorders were somewhat disruptive to consumers,but did not change the basic behavior patterns established with photography and film.These are best described as ________.

A) discontinuous innovations
B) dynamically discontinuous innovations
C) dynamically continuous innovations
D) statically continuous innovations
E) continuous innovations
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
9
A ________ approach to defining innovation treats newness from the perspective of the company producing or marketing it.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
10
A ________ involves the introduction of a modified product rather than a totally new product,and has the least disruptive influence on established patterns.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
11
________ is a macro process concerned with the spread of a new product from its source to the consuming public.

A) Adoption
B) Assumption
C) Diffusion
D) Innovation
E) Introduction
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
12
The automobile,which revolutionized the way people got from one place to the other,was an example of a ________.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
13
Under the ________ approach to defining innovation,copies or modifications of a competitor's product would qualify as new.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
14
The Gillette Fusion razor blade,which has four blades instead of three or two,is best described as a ________.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
15
A ________ is somewhat disruptive to consumers but does not alter established behavior patterns.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
16
The first people to purchase a new product are considered ________.

A) consumer innovators
B) nonadopters
C) laggards
D) trial drivers
E) test consumers
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
17
A ________ approach to defining innovation considers a "new" product to be any product that potential consumers judge to be new.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
18
A consumer is being ________ when he or she uses a previously adopted product in a novel or unusual way,or very extensively.

A) use innovative
B) purchase innovative
C) market innovative
D) compatibly innovative
E) incompatibly innovative
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
19
________ is a micro process that focuses on the stages through which an individual consumer passes when deciding to accept or reject a new product.

A) Adoption
B) Assumption
C) Diffusion
D) Innovation
E) Introduction
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
20
According to the ________ approach to defining innovation,products are considered new if they have been purchased by a relatively small percentage of the potential market or if they have been on the market for a relatively short period of time.

A) product-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
21
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 ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
22
The degree to which a new product can be tried on a limited basis is known as ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
23
The ease with which a product's benefits or attributes can be observed,imagined,or described to potential consumers is the product's ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
24
The degree to which potential consumers feel a new product is consistent with their present needs,values,and practices is a measure of its ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
25
Continuous innovation,dynamically continuous innovation,and discontinuous innovation are types of product innovations based on a ________ definition of innovation.

A) product-oriented
B) market-oriented
C) firm-oriented
D) communications-oriented
E) consumer-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
26
________ refers to the degree to which a new product is difficult to understand or use.

A) Relative advantage
B) Compatibility
C) Complexity
D) Trialability
E) Observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
27
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 ________.

A) postpurchase dissonance
B) innovation overload
C) market mavenism
D) trialability
E) viral marketing
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
28
A ________ is a physical,social,or cultural environment to which people belong and within which they function.

A) social hub
B) trial
C) social system
D) market
E) innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
29
The development of MP3 players,when consumers were used to listening to their music on CD or cassette tape players,constitutes ________.

A) discontinuous innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
30
________ is the most widespread concern of consumer innovators when it comes to innovation in high-tech consumer products.

A) Relative advantage
B) Compatibility
C) Complexity
D) Trialability
E) Observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
31
The development of small cassette players that users could easily carry with them,instead of having to play their music on stationary pieces of equipment,constituted ________.

A) discontinuous innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
32
When a social system is ________ in orientation,innovations that are perceived as radical or as infringements on established customs are likely to be avoided.

A) outward
B) antiquated
C) modern
D) traditional
E) inward
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
33
Although consumers can carry beepers so that their business offices or families can contact them,a cellular telephone enables users to be in nearly instant communication with the world and allows users to both receive and place calls.This is known as the ________ of cellular phones.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
34
Trendy items such as fashion accessories tend to diffuse more easily than products used in private because fashion accessories have greater ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
35
Hershey has traditionally made its Kisses from solid milk chocolate.When Hershey came out with Kisses with almonds in them,this constituted ________.

A) discontinuous innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
36
The acceptance of such convenience foods as frozen French fries,instant puddings,and microwave dinners,which are simple to understand and use,is generally due to their minimal ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
37
When a social system is ________ in orientation,the acceptance of innovations is likely to be high.

A) outward
B) antiquated
C) modern
D) traditional
E) inward
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
38
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) postpurchase dissonance
B) innovation overload
C) market mavenism
D) trialability
E) viral marketing
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
39
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.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
40
The degree to which potential customers perceive new product as superior to existing substitutes is its ________.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
41
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) 5 months
B) 4 months
C) 3 months
D) 2 months
E) 1 month
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
42
The ________ category tends to perceive little risk in adopting new products.These consumers are even willing to pay high prices for newly-introduced products because they enjoy being the first to own them.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
43
Innovators,early adopters,early majority,late majority,and laggards are all ________.

A) adopter categories
B) diffusion stages
C) communications theories
D) marketing strategies
E) innovation strategies
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
44
Which of the following characteristics typify a modern social system?

A) an unskilled labor force
B) members of the system rarely interact with outsiders
C) members see themselves as locked into a single role
D) a general respect for education and science
E) an emphasis on emotional social relationships
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
45
The ________ constitutes the first half of the "mass market" of consumers who would purchase a somewhat-established product.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
46
The members of the ________ category of adopters take a relatively long time to evaluate whether or not they would benefit from owning a product and,most likely,perceive more risk in all consumption situations than members of the preceding adopter groups.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
47
Awareness,interest,evaluation,trial,and adoption/rejection are the five stages of ________.

A) adopter categorization
B) purchase time
C) the adoption process
D) buyer behavior
E) social systems
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
48
Which of the following is true of the personality traits of consumer innovators?

A) they tend to be inner-directed
B) they are highly dogmatic
C) they have a high need for conformity
D) they tend to be brand loyal
E) they have low optimum stimulation levels
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
49
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's direct-mail campaign attempts to enhance ________ in order to speed the diffusion of the use of its store.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
50
The ________ is likely to buy a new product within a short period of time of introduction,although these consumers are not likely to be among the first group to buy the product.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
51
The members of the ________ category of adopters are the very last consumers to purchase a new product.They are generally high risk-perceivers and the last ones to recognize the value of innovative products.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
52
________ 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.

A) Purchase time
B) Adoption time
C) Innovation time
D) Diffusion time
E) Consumer duration
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
53
Consumers are more likely to exhibit an inclination to innovate if their culture can be characterized by ________.

A) a high power distance
B) strong uncertainty avoidance
C) value for hierarchical relationships
D) a willingness to accept uncertainty
E) a cultural value for high earnings, achievement, and assertiveness
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
54
According to recent research,effective promotional strategy for a new product that is to be immediately adopted should focus on ________.

A) how to deal with the constraints of adoption, such as switching costs
B) the desirable reasons for adoption
C) how popular the product is likely to be
D) the performance of the product
E) how many units of the product have already been sold
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
55
When a product is first introduced,the ________ consider purchasing it to be risky because it is new.After a relatively small but not insignificant number of consumers purchased the product (and probably after the price has gone down),they conclude that purchasing the product is wise.

A) innovators
B) early adopters
C) early majority
D) late majority
E) laggards
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
56
The ________ is concerned with how long it takes a new product or service to be adopted by members of a social system.

A) adopter category
B) purchase time
C) social system
D) rate of adoption
E) evaluation
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
57
Which of the following is true of the demographics of consumer innovators?

A) they tend to be older than noninnovators
B) they have less formal education
C) they have higher personal or family incomes
D) they are likely to have lower occupational status
E) they tend to be more downscale than other consumer segments
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
58
A(n)________ involves first making a new product available at a very high price to consumers who are willing to pay top dollar,and then gradually lowering the price in a stepwise fashion to attract additional market segments at each price reduction plateau.

A) adopter categorization
B) adoption process
C) penetration policy
D) skimming policy
E) social system
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
59
A(n)________ involves setting a relatively low introductory price designed to discourage competition from entering the market.

A) adopter categorization
B) adoption process
C) penetration policy
D) skimming policy
E) social system
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
60
The ________ is the earliest consumer to buy a new product.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
61
All new products have an equal potential for consumer acceptance.
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
62
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.
At the end of the COPY MINI CASE,Ken has reached the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
63
According to the firm-oriented definition of innovation,copies or modifications of a competitor's product qualify as new.
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
64
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.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
65
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 designed to encourage consumers to reach the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
66
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.

A) skimming policy
B) crowding policy
C) anticompetitive policy
D) standardization policy
E) penetration policy
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
67
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.
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
68
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,when Cynthia first sees the new coffee table,she is at the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
69
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.

A) product-oriented
B) consumer-oriented
C) market-oriented
D) output-oriented
E) firm-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
70
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,when Cynthia ultimately decides that she really likes the table and buys it,she is at the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
71
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.

A) adopter category
B) communication flow
C) rate of adoption
D) skimming policy
E) purchase time
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
72
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.

A) firm-oriented
B) product-oriented
C) market-oriented
D) adoption-oriented
E) consumption-oriented
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
73
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,when Cynthia thinks the table would go nicely in her living room and seeks Steve's opinion,she is at the ________ stage of the adoption process.

A) awareness
B) interest
C) evaluation
D) trial
E) adoption/rejection
Unlock Deck
Unlock for access to all 109 flashcards in this deck.
Unlock Deck
k this deck
74
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 new table style is an example of a ________.

A) discontinuous innovation
B) dynamically discontinuous innovation
C) statically continuous innovation
D) dynamically continuous innovation
E) continuous innovation
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75
A particular innovation may diffuse differently throughout different cultures.
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76
There is no universally accepted definition of the terms product innovation or new product.
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77
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 ________.

A) continuous innovation
B) circular innovation
C) dynamically continuous innovation
D) direct innovation
E) discontinuous innovation
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78
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,by sending a voucher specifically to Car and Driver subscribers,Marksman Motors is trying to get ________ to try the Evergreen.

A) market mavens
B) laggards
C) consumer innovators
D) viral marketers
E) surrogate buyers
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79
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,Ken makes a point of trying the new store on its opening day.This makes Ken a(n)________.

A) innovator
B) early adopter
C) early majority
D) late majority
E) laggard
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80
Use innovativeness involves meeting an old need with a new product specifically designed for that purpose.
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