Consumer Behavior Ch 14 - Consumers and the Diffusion of Innovations

14.1 & 14.2

100

1) ________ 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

What is C) Diffusion

200

4) The first people to purchase a new product are considered ________. A) consumer innovators B) nonadopters C) laggards D) trial drivers E) test consumers

What is A) consumer innovators

300

3) ________ 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

What is A) Adoption

400

8) 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

What is E) continuous innovation

500

20) 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

What is C) firm-oriented

14.2

100

7) 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

What is A) product-oriented

200

12) Communication among consumers is known as ________. A) word-of-mouth communications B) surrogacy C) mavenship D) cohort selling E) peer advertising

What is A) word-of-mouth communications

300

15) 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

What is B) market-oriented

400

14) 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

What is A) discontinuous innovation

500

10) 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

What is C) dynamically continuous innovation

14.3

100

70) 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

What is A) awareness

200

72) 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

What is E) adoption/rejection

300

65) 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

What is D) trial

400

67) 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

What is A) continuous innovation

500

66) 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

What is D) late majority

14.4

100

88) Consumer innovators tend to display higher levels of social interaction and opinion leadership than noninnovators. TRUE or FALSE

What is TRUE

200

98) Consumer innovators are more socially accepted and socially involved than noninnovators. TRUE or FALSE

What is TRUE

300

68) 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

What is C) consumer innovators

400

59) 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

What is C) they have higher personal or family incomes

500

58) 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

What is A) they tend to be inner-directed

Open Book - Double & Triple Points - 2 Minutes

100

DOUBLE POINTS - 100) Define and give examples of the four types of definitions of innovations. Answer: Definitions of innovation can be classified as:

What is ∙ Firm-oriented: treats the newness of a product from the perspective of the company producing or marketing it. ∙ Product-oriented: focuses on the features inherent in the product itself and on the effects these features are likely to have on consumers' established usage patterns. ∙ Market-oriented: judges the newness of a product in terms of how much exposure consumers have to the new product. ∙ Consumer-oriented: a "new" product is any product that a potential consumer judges to be new.

200

104) Identify and describe each of the five adopter categories.

What is ∙ Innovators (2.5%): very eager to try new ideas; acceptable if risk is daring; more cosmopolite social relationships; communicate with other innovators ∙ Early Adopters (13.5%): more integrated into the local social system; the persons to check with before adopting a new idea; category contains greatest number of opinion leaders; are role models ∙ Early Majority (34%): adopt new ideas just prior to the average time; seldom hold leadership positions; deliberate for some time before adopting ∙ Late Majority (34%): adopt new ideas just after the average time; adopting may be both an economic necessity and a reaction to peer pressures; innovations approached cautiously ∙ Laggards (16%): the last people to adopt an innovation; most "localite" in outlook; oriented to the past; suspicious of the new

300

DOUBLE POINTS - 101) What are the differences between continuous, dynamically continuous, and discontinuous innovation?

What is A continuous innovation has the least disruptive influence on established patterns. It involves the introduction of a modified product rather than a totally new product. A dynamically continuous innovation is somewhat more disruptive than a continuous innovation but still does not alter established behavior patterns. It may involve the creation of a new product or the modification of an existing product. A discontinuous innovation requires consumers to adopt new behavior patterns.

400

TRIPLE POINTS - 105) What is the marketing significance of rate of adoption? How can a slower rate of adoption be beneficial to the marketer?

What is : The rate of adoption is concerned with how long it takes a new product or service to be adopted by members of a social system. The objective in marketing new products is usually to gain wide acceptance of the product as quickly as possible. Marketers desire a rapid rate of product adoption to penetrate the market and quickly establish market leadership. Rapid product adoption also demonstrates to market intermediaries that the product is worthy of their full and continued support. This is called a penetration policy. Under certain circumstances, marketers might prefer to avoid a rapid rate of adoption for a new product. Marketers who wish to use a pricing strategy that will enable them to recoup their development costs quickly might follow a skimming policy, whereby they first make the product available at a very high price to consumers who are willing to pay top dollar and then gradually lower the price in a stepwise fashion to attract additional market segments at each price reduction plateau.

500

DOUBLE POINTS - 106) Identify and give examples of what happens during each of the five stages of the adoption process.

What is ∙ Awareness: the consumer is first exposed to the product innovation, e.g. Mark sees the new video iPod advertised in a magazine ∙ Interest: the consumer is interested in the product and searches for additional information, e.g. Mark goes to the Apple website to find out more about the video iPod ∙ Evaluation: the consumer decides whether or not to believe that this product or service will satisfy the need, e.g. Mark decides that the new video iPod would be perfect for listening to music and watching TV on his 30-minute train commute to work each day ∙ Trial: the consumer uses the product on a limited basis, e.g. Mark buys a video iPod at his local Apple store, but saves the receipt so that he can return it in a few days if he decides he doesn't really like it ∙ Adoption/Rejection: if trial is favorable, the consumer decides to use the product on a full rather than a limited basis. If unfavorable, the consumer decides to reject it, e.g. Mark finds that watching videos on such a small screen while on the train makes him sea-sick, and so decides that he doesn't really like it and returns the iPod