marketing of innovation 2

Question 2

What is the definition of the diffusion of innovation?

Answer 2

A theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures.

Question 3

What are the 5 stages of adoption?

Answer 3

• Awareness
• Interest
• Evaluation
• Trial
• Adoption / Rejection

Question 4

What factors influence the diffusion of innovation?

Answer 4

• Product Characteristics
• Adopter Categories
• Adoption Process

Question 5

Define ‘Relative Advantage’ in the context of product characteristics.

Answer 5

The degree that potential customers perceive a new product/service as superior to similar existing alternatives.

Question 6

What is ‘Compatibility’ in relation to product characteristics?

Answer 6

The degree that potential customers feel the innovation relates to their needs, value systems, and practices.

Question 7

What does ‘Complexity’ refer to in product characteristics?

Answer 7

The degree of difficulty in understanding, buying, or using the new innovation.

Question 8

Define ‘Trialability’.

Answer 8

The degree that the product or service can be tested and tried on a limited basis before it is adopted.

Question 9

What is ‘Observability’ in the context of product characteristics?

Answer 9

The degree that a product/service’s benefits or attributes can be observed, imagined, or described to potential consumers.

Question 10

Fill in the blank: The chance of diffusion is high if _______ is high.

Answer 10

relative advantage

Question 11

Fill in the blank: The chance of diffusion is high if _______ is high.

Answer 11

compatibility

Question 12

Fill in the blank: The chance of diffusion is high if _______ is low.

Answer 12

complexity

Question 13

Fill in the blank: The chance of diffusion is high if _______ is high.

Answer 13

trialability

Question 14

Fill in the blank: The chance of diffusion is high if _______ is high.

Answer 14

observability

Question 15

What are the categories of adopters in the adoption process?

Answer 15

• Innovators
• Early Adopters
• Early Majority
• Late Majority
• Laggards

Question 16

True or False: Early Adopters are likely to buy within a short period of introduction.

Answer 16

True

Question 17

What is the significance of ‘Trialability’ in the adoption process?

Answer 17

It allows potential customers to test and try the product before full adoption.

Question 18

What is an example of ‘Relative Advantage’?

Answer 18

Early mobile phones were adopted quickly because they could make and receive calls anywhere.

Question 19

What is an example of ‘Compatibility’?

Answer 19

Smartphones have a quick adoption because they are compatible with our hectic, information-seeking lifestyle.

Question 20

What is an example of ‘Complexity’?

Answer 20

Digital cameras were adopted slowly due to perceived complexity until photo editing software made it easier.

Question 21

What is an example of ‘Trialability’?

Answer 21

Offering product samples is a common way for new brands to increase their rate of adoption.

Question 22

What is an example of ‘Observability’?

Answer 22

Fashion items have a high degree of social visibility where benefits and attributes can be easily seen.

Question 23

What percentage of the population are Innovators in the adoption categories?

Answer 23

2.5%

Innovators are the first ones to buy and are well-informed risk-takers.

Question 24

What characterizes Early Adopters?

Answer 24

13.5%
Likely to buy within a short period of introduction
Tend to be educated opinion leaders
Like to share information with others evaluating the product

Early Adopters are crucial for the diffusion of innovation.

Question 25

What is the percentage and characteristic of Early Majority?

Answer 25

34% First half of mass market Careful consumers who tend to avoid risk Adopt the product once it has been proven Rely on others who have experience with the product ## Footnote Early Majority plays a significant role in product adoption.

Question 26

What defines the Late Majority?

Answer 26

34% Second half of mass market Purchase the older version of the product heading to maturity Take relatively long time to evaluate ## Footnote Late Majority typically adopts products after they have become mainstream.

Question 27

What percentage of the population are Laggards?

Answer 27

16% Last to purchase and recognize value of innovation High risk perceivers Avoid change and may not adopt a new product until traditional alternatives are no longer available ## Footnote Laggards are often resistant to change.

Question 28

Fill in the blank: The adoption process consists of five stages: Awareness, Interest, ________, Trial, Adoption.

Answer 28

Evaluation ## Footnote Evaluation is the stage where the individual decides whether or not to try the innovation.

Question 29

What happens during the Trial stage of the adoption process?

Answer 29

Consumer uses the innovation on a limited basis or for the first time, usually in small amounts ## Footnote This stage is crucial for determining the user's satisfaction with the product.

Question 30

What influences the Diffusion of Innovation?

Answer 30

Product Characteristics * Relative Advantage * Compatibility * Complexity * Trialability * Observability ## Footnote These characteristics help determine how quickly an innovation is adopted.

Question 31

True or False: Innovators are the last group to adopt new products.

Answer 31

False ## Footnote Innovators are the first to adopt new products.

Question 32

What is the role of Early Adopters in the adoption process?

Answer 32

They serve as opinion leaders and help influence others to evaluate and adopt the product ## Footnote Their feedback can be critical for the success of new innovations.

Question 33

What do Laggards typically do regarding new products?

Answer 33

They avoid change and may not adopt a new product until traditional alternatives are no longer available ## Footnote Laggards often represent the final segment of the market to adopt innovations.

Question 34

What is the significance of the Evaluation stage in the adoption process?

Answer 34

The individual mentally applies the innovation to their present and anticipated future situation, and then decides whether or not to try it ## Footnote This stage is crucial for understanding consumer readiness to adopt.

Question 35

What is the focus of the textbook by Schiffman and Wisenblit?

Answer 35

Consumer Behaviour (12th ed.) ## Footnote Published by Pearson Education

Question 36

Who authored the 5th edition of 'Consumer Behavior' published by Pearson Higher Ed?

Answer 36

M. R. Solomon ## Footnote This is a widely used textbook in consumer behavior studies.

Question 37

What edition of 'Consumer Behaviour' is authored by Sethna and Blythe?

Answer 37

3rd ed. ## Footnote The book is published by Sage Publications Ltd.

Question 38

What is the title of the article by Anthony J. Pennings?

Answer 38

Diffusion and the Five Characteristics of Innovation Adoption ## Footnote Retrieved from http://apennings.com/characteristics-of-digital-media/diffusion-and-the-five-characteristics-of-innovation-adoption

Question 39

What is the focus of the website 'spreadingscience'?

Answer 39

The 5 steps to adopting an innovation ## Footnote Retrieved from https://www.spreadingscience.com/our-approach/diffusion-of-innovations-in-a-community/3-the-5-steps-to-adopting-an-innovation/

Question 40

What is the main topic of the article adapted from Leigh Cowan?

Answer 40

New Product Innovations and Launching Strategies ## Footnote Retrieved from https://www.academia.edu/4856155/New_Product_Innovations_and_Launching_Strategies