Consumer Behavior, 10e (Schiffman/Kanuk)Chapter 14 Consumers and the Diffusion of Innovations

1) ________ is a macro process concerned with the spread of a new product from its source to the consuming public.A) AdoptionB) AssumptionC) DiffusionD) InnovationE) IntroductionAnswer: CDiff: 2 Page Ref: 432AACSB: Analytic SkillsSkill: ConceptObjective: 14.1: Understand the twofold process of the spread and acceptance of innovative products and services within a social system

2) The process of ________ is concerned with how innovations spread. A) innovation B) adoption C) success D) diffusion E) influence Answer: DDiff: 1 Page Ref: 432Skill: ConceptObjective: 14.1: Understand the twofold process of the spread and acceptance of innovative products and services within a social system

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) AdoptionB) AssumptionC) DiffusionD) InnovationE) IntroductionAnswer: ADiff: 2 Page Ref: 432AACSB: Analytic SkillsSkill: ConceptObjective: 14.1: Understand the twofold process of the spread and acceptance of innovative products and services within a social system

1Copyright © 2010 Pearson Education, Inc.

4) The first people to purchase a new product are considered ________.A) consumer innovatorsB) nonadopters C) laggardsD) trial driversE) test consumersAnswer: ADiff: 2 Page Ref: 432Skill: ConceptObjective: 14.1: Understand the twofold process of the spread and acceptance of innovative products and services within a social system

5) A ________ approach to defining innovation treats newness from the perspective of the company producing or marketing it.A) product-orientedB) market-orientedC) consumer-orientedD) firm-orientedE) development-orientedAnswer: DDiff: 1 Page Ref: 433Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

6) Under the ________ approach to defining innovation, copies or modifications of a competitor's product would qualify as new.A) product-orientedB) market-orientedC) consumer-orientedD) firm-orientedE) development-orientedAnswer: DDiff: 2 Page Ref: 433AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

2Copyright © 2010 Pearson Education, Inc.

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-orientedB) market-orientedC) consumer-orientedD) firm-orientedE) development-orientedAnswer: ADiff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

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 innovationB) dynamically discontinuous innovationC) dynamically continuous innovationD) statically continuous innovation E) continuous innovationAnswer: EDiff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

9) The Gillette Fusion razor blade, which has four blades instead of three or two, is best described as a ________.A) discontinuous innovationB) dynamically discontinuous innovationC) dynamically continuous innovationD) statically continuous innovation E) continuous innovationAnswer: EDiff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

3Copyright © 2010 Pearson Education, Inc.

10) A ________ is somewhat disruptive to consumers but does not alter established behavior patterns.A) discontinuous innovationB) dynamically discontinuous innovationC) dynamically continuous innovationD) statically continuous innovation E) continuous innovationAnswer: CDiff: 3 Page Ref: 433AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

11) 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 innovationsB) dynamically discontinuous innovationsC) dynamically continuous innovationsD) statically continuous innovationsE) continuous innovationsAnswer: CDiff: 3 Page Ref: 433AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

12) Communication among consumers is known as ________.A) word-of-mouth communications B) surrogacy C) mavenship D) cohort selling E) peer advertising Answer: ADiff: 1 Page Ref: 437Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

4Copyright © 2010 Pearson Education, Inc.

13) A ________ requires consumers to adopt new behavior patterns.A) discontinuous innovationB) dynamically discontinuous innovationC) dynamically continuous innovationD) statically continuous innovation E) continuous innovationAnswer: ADiff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

14) The automobile, which revolutionized the way people got from one place to the other, was an example of a ________.A) discontinuous innovationB) dynamically discontinuous innovationC) dynamically continuous innovationD) statically continuous innovation E) continuous innovationAnswer: ADiff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

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-orientedB) market-orientedC) consumer-orientedD) firm-orientedE) development-orientedAnswer: BDiff: 2 Page Ref: 433Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

5Copyright © 2010 Pearson Education, Inc.

16) 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-orientedB) market-orientedC) consumer-orientedD) firm-orientedE) development-orientedAnswer: BDiff: 2 Page Ref: 433Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

17) A ________ approach to defining innovation considers a "new" product to be any product that potential consumers judge to be new.A) product-orientedB) market-orientedC) consumer-orientedD) firm-orientedE) development-orientedAnswer: CDiff: 2 Page Ref: 433Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

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 innovativeB) purchase innovativeC) market innovativeD) compatibly innovativeE) incompatibly innovativeAnswer: ADiff: 1 Page Ref: 434Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

6Copyright © 2010 Pearson Education, Inc.

19) 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 innovativenessB) purchase innovativenessC) market innovativenessD) compatibly innovativenessE) incompatibly innovativenessAnswer: ADiff: 2 Page Ref: 434Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

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 Answer: CDiff: 2 Page Ref: 433AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

21) 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 Answer: ADiff: 1 Page Ref: 433AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

7Copyright © 2010 Pearson Education, Inc.

22) 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 Answer: EDiff: 2 Page Ref: 433Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

23) The development of MP3 players, when consumers were used to listening to their music on CD or cassette tape players, constitutes ________. A) discontinuous innovationB) circular innovation C) dynamically continuous innovation D) straight-line innovation E) continuous innovation Answer: CDiff: 2 Page Ref: 433Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

24) 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 Answer: ADiff: 3 Page Ref: 433Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

8Copyright © 2010 Pearson Education, Inc.

25) 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 Answer: ADiff: 1 Page Ref: 435AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

26) 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 Answer: ADiff: 1 Page Ref: 435Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

27) 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 Answer: BDiff: 2 Page Ref: 435Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

9Copyright © 2010 Pearson Education, Inc.

28) 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 Answer: BDiff: 2 Page Ref: 435Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

29) ________ 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 Answer: CDiff: 1 Page Ref: 436Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

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 Answer: CDiff: 3 Page Ref: 436AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

10Copyright © 2010 Pearson Education, Inc.

31) 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 Answer: CDiff: 2 Page Ref: 436AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

32) The degree to which a new product can be tried on a limited basis is known as ________.A) relative advantageB) compatibility C) complexity D) trialability E) observability Answer: DDiff: 2 Page Ref: 436AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

33) 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 advantageB) compatibility C) complexity D) trialability E) observability Answer: DDiff: 2 Page Ref: 436Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

11Copyright © 2010 Pearson Education, Inc.

34) 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 Answer: EDiff: 1 Page Ref: 436AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

35) 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 Answer: EDiff: 2 Page Ref: 436Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

36) 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 Answer: BDiff: 2 Page Ref: 436AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

12Copyright © 2010 Pearson Education, Inc.

37) 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 Answer: BDiff: 1 Page Ref: 436Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

38) 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 Answer: CDiff: 2 Page Ref: 438AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

39) When a social system is ________ in orientation, the acceptance of innovations is likely to be high.A) outwardB) antiquatedC) modernD) traditionalE) inwardAnswer: CDiff: 3 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

13Copyright © 2010 Pearson Education, Inc.

40) 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) outwardB) antiquatedC) modernD) traditionalE) inwardAnswer: DDiff: 3 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

41) Which of the following characteristics typify a modern social system?A) an unskilled labor forceB) members of the system rarely interact with outsidersC) members see themselves as locked into a single roleD) a general respect for education and scienceE) an emphasis on emotional social relationshipsAnswer: DDiff: 3 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

42) Consumers are more likely to exhibit an inclination to innovate if their culture can be characterized by ________.A) a high power distanceB) strong uncertainty avoidanceC) value for hierarchical relationshipsD) a willingness to accept uncertaintyE) a cultural value for high earnings, achievement, and assertivenessAnswer: DDiff: 2 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

14Copyright © 2010 Pearson Education, Inc.

43) ________ 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 timeB) Adoption timeC) Innovation timeD) Diffusion timeE) Consumer durationAnswer: ADiff: 2 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

44) 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 monthsB) 4 monthsC) 3 monthsD) 2 monthsE) 1 monthAnswer: CDiff: 2 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

45) 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 costsB) the desirable reasons for adoptionC) how popular the product is likely to beD) the performance of the productE) how many units of the product have already been soldAnswer: ADiff: 3 Page Ref: 441AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

15Copyright © 2010 Pearson Education, Inc.

46) 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 Answer: ADiff: 1 Page Ref: 441Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

47) The ________ is the earliest consumer to buy a new product.A) innovator B) early adopter C) early majority D) late majority E) laggard Answer: ADiff: 1 Page Ref: 441AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

48) 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 Answer: ADiff: 2 Page Ref: 442Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

16Copyright © 2010 Pearson Education, Inc.

49) 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 Answer: BDiff: 1 Page Ref: 442AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

50) 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 Answer: CDiff: 1 Page Ref: 442AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

51) 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) innovatorsB) early adoptersC) early majority D) late majority E) laggardsAnswer: CDiff: 2 Page Ref: 442Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

17Copyright © 2010 Pearson Education, Inc.

52) 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 Answer: DDiff: 1 Page Ref: 442AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

53) 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 Answer: EDiff: 2 Page Ref: 442AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

54) 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 adoptionE) evaluationAnswer: DDiff: 2 Page Ref: 443Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

18Copyright © 2010 Pearson Education, Inc.

55) A(n) ________ involves setting a relatively low introductory price designed to discourage competition from entering the market. A) adopter categorization B) adoption processC) penetration policyD) skimming policyE) social systemAnswer: CDiff: 2 Page Ref: 444Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

56) 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 processC) penetration policyD) skimming policyE) social systemAnswer: DDiff: 2 Page Ref: 444Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

57) Awareness, interest, evaluation, trial, and adoption/rejection are the five stages of ________. A) adopter categorization B) purchase time C) the adoption process D) buyer behaviorE) social systems Answer: CDiff: 1 Page Ref: 445Skill: ConceptObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

19Copyright © 2010 Pearson Education, Inc.

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 Answer: ADiff: 3 Page Ref: 450AACSB: Reflective ThinkingSkill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

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 Answer: CDiff: 2 Page Ref: 452AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.4: Understand the personal characteristics of innovators

20Copyright © 2010 Pearson Education, Inc.

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.

60) 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 Answer: DDiff: 3 Page Ref: 435AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

61) 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 Answer: ADiff: 2 Page Ref: 441Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

21Copyright © 2010 Pearson Education, Inc.

62) 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 Answer: EDiff: 2 Page Ref: 446,Table 14.4AACSB: Analytic SkillsSkill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

63) 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-orientedB) consumer-oriented C) market-orientedD) output-orientedE) firm-orientedAnswer: EDiff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

64) 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 policyB) crowding policyC) anticompetitive policyD) standardization policyE) penetration policyAnswer: EDiff: 2 Page Ref: 444AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

22Copyright © 2010 Pearson Education, Inc.

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.

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 Answer: DDiff: 2 Page Ref: 446, Table 14.4Skill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

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 Answer: DDiff: 3 Page Ref: 442AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

23Copyright © 2010 Pearson Education, Inc.

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 Answer: ADiff: 3 Page Ref: 433AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

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 innovatorsD) viral marketers E) surrogate buyers Answer: CDiff: 3 Page Ref: 452Skill: ApplicationObjective: 14.4: Understand the personal characteristics of innovators

69) In the CAR MINI CASE, the Evergreen is considered a "new" product based on a(n) ________ definition of product innovation.A) firm-orientedB) product-orientedC) market-orientedD) adoption-oriented E) consumption-orientedAnswer: ADiff: 3 Page Ref: 432Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

24Copyright © 2010 Pearson Education, Inc.

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.

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 Answer: ADiff: 3 Page Ref: 446, Table 14.4Skill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

71) 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 Answer: BDiff: 3 Page Ref: 446, Table 14.4Skill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

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 Answer: EDiff: 3 Page Ref: 446, Table 14.4Skill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

25Copyright © 2010 Pearson Education, Inc.

73) 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 Answer: EDiff: 2 Page Ref: 439Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

74) In the TABLE MINI CASE, the new table style is an example of a ________.A) discontinuous innovationB) dynamically discontinuous innovationC) statically continuous innovationD) dynamically continuous innovation E) continuous innovationAnswer: EDiff: 2 Page Ref: 433Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

75) There is no universally accepted definition of the terms product innovation or new product.Answer: TRUEDiff: 2 Page Ref: 432AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

76) According to the firm-oriented definition of innovation, copies or modifications of a competitor's product qualify as new.Answer: TRUEDiff: 2 Page Ref: 433Skill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

26Copyright © 2010 Pearson Education, Inc.

77) Use innovativeness involves meeting an old need with a new product specifically designed for that purpose. Answer: FALSEDiff: 2 Page Ref: 434AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

78) All new products have an equal potential for consumer acceptance.Answer: FALSEDiff: 2 Page Ref: 434AACSB: Reflective ThinkingSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

79) A particular innovation may diffuse differently throughout different cultures.Answer: TRUEDiff: 2 Page Ref: 436AACSB: Multicultural and DiversitySkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

80) 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.Answer: TRUEDiff: 2 Page Ref: 437AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

81) The social system serves as the boundary within which the diffusion of a new product is examined. Answer: TRUEDiff: 2 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

27Copyright © 2010 Pearson Education, Inc.

82) Marketers should disregard the orientation of their target consumers' social system when seeking to gain acceptance for their new products.Answer: FALSEDiff: 2 Page Ref: 439AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

83) Purchase time refers to the amount of time consumers use a product or service before they feel comfortable talking to others about their experiences. Answer: FALSEDiff: 1 Page Ref: 439Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

84) Longer purchase times typically lead to faster diffusion of innovations. Answer: FALSEDiff: 1 Page Ref: 439AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

85) The first set of people who purchase a new product are called early adopters. Answer: FALSEDiff: 1 Page Ref: 441Skill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

86) The traditional five adopter categories present in diffusion literature include all potential consumers present in the marketplace. Answer: FALSEDiff: 3 Page Ref: 442AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

28Copyright © 2010 Pearson Education, Inc.

87) In general, the diffusion of products worldwide is becoming a more rapid phenomenon. Answer: TRUEDiff: 2 Page Ref: 443AACSB: Reflective ThinkingSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

88) Consumer innovators tend to display higher levels of social interaction and opinion leadership than noninnovators.Answer: TRUEDiff: 2 Page Ref: 448AACSB: Reflective ThinkingSkill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

89) Consumer innovators are not as interested as late adopters or nonadopters in the product categories that they are among the first to purchase. Answer: FALSEDiff: 1 Page Ref: 449Skill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

90) Consumer innovators provide other consumers with information and advice about new products, and those who receive such advice frequently follow it. Answer: TRUEDiff: 1 Page Ref: 449Skill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

91) Because motivated consumer innovators can influence the rate of acceptance or rejection of a new product, they influence its eventual success or failure.Answer: TRUEDiff: 2 Page Ref: 449AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.4: Understand the personal characteristics of innovators

92) Noninnovators seem to find new products threatening to the point where they prefer to delay purchase until the product's success has been clearly established.Answer: TRUEDiff: 2 Page Ref: 449AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.4: Understand the personal characteristics of innovators

29Copyright © 2010 Pearson Education, Inc.

93) Consumer innovators are more dogmatic than noninnovators.Answer: FALSEDiff: 1 Page Ref: 449AACSB: Analytic SkillsSkill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

94) 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.Answer: TRUEDiff: 2 Page Ref: 450Skill: ApplicationObjective: 14.4: Understand the personal characteristics of innovators

95) Consumer innovators are low-risk perceivers. Answer: TRUEDiff: 1 Page Ref: 450Skill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

96) Consumer innovators are less likely to be deal prone. Answer: FALSEDiff: 2 Page Ref: 451AACSB: Analytic SkillsSkill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

97) Innovators tend to watch more television than noninnovators. Answer: FALSEDiff: 2 Page Ref: 452Skill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

98) Consumer innovators are more socially accepted and socially involved than noninnovators. Answer: TRUEDiff: 1 Page Ref: 452Skill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

99) The overlap of innovativeness across product categories seems to be limited to product categories that are closely related to the same basic interest area. Answer: TRUEDiff: 2 Page Ref: 452AACSB: Reflective ThinkingSkill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

30Copyright © 2010 Pearson Education, Inc.

100) Define and give examples of the four types of definitions of innovations.Answer: Definitions of innovation can be classified as:∙ 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.Examples given by students will vary.Diff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

101) What are the differences between continuous, dynamically continuous, and discontinuous innovation?Answer: 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.Diff: 2 Page Ref: 433AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

31Copyright © 2010 Pearson Education, Inc.

102) Define and give examples of the five product characteristics that influence the diffusion of innovation.Answer: The five product characteristics that influence the diffusion of innovation are:∙ Relative advantage: the degree to which potential customers perceive a new product as superior to existing substitutes.∙ Compatiblity: the degree to which potential consumers feel a new product is consistent with their present needs, values, and practices.∙ Complexity: The degree to which a new product is difficult to use or understand.∙ Trialability: The degree to which a new product is capable of being tried on a limited basis.∙ Observability: The degree to which a product's benefits or attributes can be observed, imagined, or described to potential customers.Examples provided by students will vary.Diff: 2 Page Ref: 437, Table 14.1AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

103) Identify and discuss four characteristics that typify a modern social system. Answer: Students may choose and discuss any four of the following characteristics:∙ A positive attitude toward change∙ An advanced technology and skilled labor force ∙ A general respect for education and science∙ An emphasis on rational and ordered social relationships rather than on emotional ones∙ An outreach perspective, in which members of the system frequently interact with outsiders, thus facilitating the entrance of new ideas into the social system ∙ A system in which members can readily see themselves in quite different roles Diff: 2 Page Ref: 439AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

32Copyright © 2010 Pearson Education, Inc.

104) Identify and describe each of the five adopter categories. Answer: ∙ 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 Diff: 2 Page Ref: 441AACSB: Analytic SkillsSkill: ConceptObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

105) What is the marketing significance of rate of adoption? How can a slower rate of adoption be beneficial to the marketer? Answer: 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. Diff: 3 Page Ref: 443-444AACSB: Reflective ThinkingSkill: ApplicationObjective: 14.2: Understand how innovative products and services spread (or fail to spread) within a social system

33Copyright © 2010 Pearson Education, Inc.

106) Identify and give examples of what happens during each of the five stages of the adoption process. Answer: ∙ 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 iPodDiff: 2 Page Ref: 446, Table 14.4Skill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

107) In what ways is the traditional adoption process model inadequate in its depiction of the consumer adoption process? Answer: Although the traditional adoption process model is insightful in its simplicity, it does not adequately reflect the full complexity of the consumer adoption process. For one, it does not adequately acknowledge that there is quite often a need or problem-recognition stage that consumers face before acquiring an awareness of potential options or solutions. Moreover, the adoption process does not adequately provide for the possibility of evaluation and rejection of a new product or service after each stage, especially after trial. Finally, it does not explicitly include postadoption or postpurchase evaluation, which can lead to strengthened commitment or to a decision to discontinue use. Diff: 3 Page Ref: 445-446AACSB: Reflective ThinkingSkill: ConceptObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

34Copyright © 2010 Pearson Education, Inc.

108) How has the relative importance of information sources changed in recent years with regard to the adoption process?Answer: While interpersonal sources of information are still important at the latter stages of the purchase decision process, it is believed that the nature of these interpersonal sources has changed. A person seeking information today no longer has to rely mostly on friends, relatives, and/or salespeople. For almost any product category, there are discussion forums, chat rooms, and blogs on the Web that can not only provide relevant information, but can also answer questions.Diff: 3 Page Ref: 447AACSB: CommunicationSkill: ApplicationObjective: 14.3: Understand how individual consumers decide whether or not to try and adopt a particularly innovative product or service

109) Discuss the attitude of the consumer innovator toward risk. Answer: Consumer innovators seem to be more receptive to the unfamiliar and the unique; they are more willing to rely on their own values or standards than on the judgment of others. They also are willing to run the risk of a poor product choice to increase their exposure to new products that will be satisfying. Diff: 1 Page Ref: 450Skill: ConceptObjective: 14.4: Understand the personal characteristics of innovators

35Copyright © 2010 Pearson Education, Inc.