Chapter 15

61. _____ is the degree to which consumers influence each other in the diffusion of a new product. a. Trialability b. Complexity c. Contagion d. A fashion e. A fad

d. A fashion

59. Which of the following is true of a diffusion curve? a. It reflects the time period during which a product was launched. b. It reflects the total sales of a product in dollar value. c. It reflects the total sales of a product in percentages. d. It reflects the percentage of the population who have adopted a product. e. It reflects the total number of people who have adopted a product.

d. It reflects the percentage of the population who have adopted a product.

32. Which of the following is true of a dynamically continuous innovation? a. It has the ability to convey meaning about a consumer's reference group. b. It has a limited effect on existing consumption patterns. c. It has a pronounced effect on consumption practices. d. It has the potential to start a new product category. e. It has the same usage as the products that came before it.

e. It has the same usage as the products that came before it.

68. A _____ is a successful innovation with a lengthy product life cycle. a. blip b. flash c. spat d. fashion e. classic

e. classic

50. The _____ are pragmatists, seeking innovations that offer incremental, predictable improvements on an existing technology. a. laggards b. innovators c. early adopters d. late-majority consumers e. early-majority consumers

e. early-majority consumers

55. By virtue of their experience with the innovation, innovators may: a. have a greater degree of resistance to an innovation. b. be price sensitive and more favorable to competitors. c. be more easily influenced by a reference group. d. be less receptive to information about new products. e. exact normative and informational influence on others.

e. exact normative and informational influence on others.

29. Trackanddeliver.com is an online retail store that does not require a fixed delivery location and delivers goods to the current location of the customer by tracking the customer's cell phone location. This way customers need not be at home when a package arrives nor have the package delivered to a neighbor. In this scenario, Trackanddeliver.com is considered as a _____. a. symbolic innovation b. discontinuous innovation c. radical innovation d. hedonic innovation e. functional innovation

e. functional innovation

63. The _____ is a concept that suggests that offerings go through an initial introductory period followed by periods of sales growth, maturity, and decline. a. needs hierarchy b. balance scorecard c. contingency theory d. inclusive value measurement e. product life cycle

e. product life cycle

43. Breadth of an innovation is defined as: a. the number of different ideas that goes into the invention of a new product. b. the rate of continuity of an innovation in the market. c. the rate of discontinuity of an innovation in the market. d. the degree to which people influence one another in the diffusion of a new product. e. the new and different uses of a particular product.

e. the new and different uses of a particular product.

72. _____ refers to the extent to which an innovation can foster new styles. a. Simplicity b. Adaptability c. Legitimacy d. Fungability e. Guidability

b. Adaptability

30. Which of the following is true of a continuous innovation? a. It has the ability to convey meaning about a consumer's reference group. b. It has a limited effect on existing consumption patterns. c. It has a pronounced effect on our consumption practices. d. It has the potential to start a new product category. e. It has old associations but a new name.

b. It has a limited effect on existing consumption patterns.

47. Which of the following is true of the low-effort hierarchy of effects? a. It is high priced but less interesting to the consumer. b. It involves less risk and fewer people in the buying decision. c. It is common in prevention-focused consumers. d. It takes a long time to be adopted but is always adopted by everyone. e. It takes a short time to be adopted but is only adopted by half the consumers.

b. It involves less risk and fewer people in the buying decision.

58. Cook Wave is one of the first microwave ovens in the market. Initially, the adoption rate of Cook Wave ovens was very slow. The adoption rate increased dramatically as consumers became more aware and knowledgeable of microwave technology and as more products compatible with microwave technology came into the market. The diffusion pattern for this product is likely to be: a. linear. b. S-shaped. c. exponential. d. U-shaped. e. bell-shaped.

b. S-shaped.

39. Which of the following is true of hedonic innovations? a. They offer benefits in product performance over existing alternatives. b. They appeal to our pleasure-seeking and/or sensory needs. c. They have new social meaning. d. They are only incremental improvements. e. They usually spawn other innovations and product forms.

b. They appeal to our pleasure-seeking and/or sensory needs.

56. Identify a characteristic of innovators. a. They have little social influence. b. They tend to be opinion leaders. c. They tend to be followers. d. They are highly collective in thought. e. They are risk averse.

b. They tend to be opinion leaders.

40. New forms of dance, new types of music, new clothing styles, and new types of food would all qualify as _____. a. functional innovations b. aesthetic innovations c. discontinuous innovations d. attribute-based innovations e. serial innovations

b. aesthetic innovations

27. Countries such as Vesmeta and Aldarnia are considered to be Fourth World countries. Products like TVs and VCRs are very new to the people who live there, even though most First World countries regard them as established products. These products are considered to be innovations in these countries now because they: a. are better than the existing alternatives in the country. b. are regarded as new products in their country of origin. c. have strong brand images. d. are being marketed as new offerings. e. can only be purchased by the elite income groups.

b. are regarded as new products in their country of origin.

31. Shine&Lime Inc. has introduced a new sponge that has an antimicrobial polymer designed to kill bacteria and germs and reduce the odors associated with wet sponges. This is best thought of as an example of a _____. a. dynamically discontinuous innovation b. continuous innovation c. dynamically continuous innovation d. discontinuous innovation e. hedonic innovation

b. continuous innovation

36. _____ are those that offer benefits in product performance over existing alternatives. a. Functional innovations b. Feature innovations c. Symbolic innovations d. Hedonic innovations e. Dynamic innovations

a. Functional innovations

24. Innovation can be defined as: a. an offering that is perceived as new by consumers within a market segment and that has an effect on existing consumption patterns. b. the creation of value through customers' participation in new product development, among other marketing activities. c. the usage of technology to facilitate human togetherness and reduce human separation. d. a concept that suggests that products go through an initial introductory period followed by periods of sales growth, maturity, and decline. e. the degree to which consumers influence each other in the diffusion of a new product.

a. an offering that is perceived as new by consumers within a market segment and that has an effect on existing consumption patterns.

70. Among factors that influence resistance, adoption, and diffusion, _____ is the extent to which an innovation is consistent with one's needs, values, norms, or behaviors. a. compatibility b. fungibility c. periodicity d. trialability e. complexity

a. compatibility

62. A successful innovation that has a moderately long and potentially cyclical product life cycle is known as a(n) _____. a. fashion b. fad c. prototype d. blip e. exemplar

a. fashion

37. Flapbox is a new type of tablet that does not require any hardware medium for input. It offers the benefit of portability and additional functionality that desktop computers do not. Flapbox can be best classified as a(n) _____. a. functional innovation b. aesthetic innovation c. symbolic innovation d. attribute-based innovation e. serial innovation

a. functional innovation

38. GreenMachine, a hybrid car, is considered to be more fuel-efficient and environment friendly than a traditional gasoline-powered car. GreenMachine is an example of a(n) _____. a. functional innovation b. hedonic innovation c. symbolic innovation d. aesthetic innovation e. dynamic innovation

a. functional innovation

52. The _____ are the slowest group to adopt an innovation, and are considered skeptics. a. laggards b. innovators c. early adopters d. late-majority consumers e. early-majority consumers

a. laggards

53. If an innovation is to spread through the market, it: a. must appeal to every adopter group. b. only needs to appeal to innovators. c. only needs to appeal to early-majority consumers. d. must first appeal to the lower classes. e. must first appeal to the middle classes.

a. must appeal to every adopter group.

64. The product life cycle deals with the: a. sales of the product over time. b. influence of individuals in the diffusion of the product. c. percentage of sales volume generated by the product. d. rate of the product's obsolescence. e. percentage of the market that has adopted the product.

a. sales of the product over time.

46. Ying is known to read several online reviews, consult all his friends, and gather all the available information about a product before purchasing it. From the given information, it is understood that Ying follows _____ while making innovation adoption decisions. a. the high-effort hierarchy of effects b. the low-effort hierarchy of effects c. peripheral processing d. heuristic processing e. schema probing

a. the high-effort hierarchy of effects

65. The SoundBoy was a portable radio targeted toward children in the 1970s. It came in different colors and shapes and was one of the most popular products in its time. Portable radios have slowly been replaced by smartphones, tablets and other gadgets. From the above scenario, it can be stated that the SoundBoy is currently in the _____ stage of the product life cycle. a. growth b. decline c. introduction d. contagion e. maturity

b. decline

69. In Aldmur, warmth of food is associated with freshness. CheesyPies is trying to sell frozen pizzas in Aldmur. CheesyPies would likely face difficulties in the market because of the: a. adoption speed of the innovation. b. incompatibility with the existing consumer values and norms. c. low trialability of the product. d. collectivist nature of the community. e. socioeconomic status associated with the product or service.

b. incompatibility with the existing consumer values and norms.

26. Phoenix Inc., a XYZ manufacturing company, introduces Numberator, a scientific calculator, that comprises a special, high-quality chip. This chip helps the Numberator calculate faster than the traditional scientific calculators. In this scenario, Numberator can be considered an innovation: a. only if its speed can be measured. b. only if it is perceived so by consumers. c. as long as the brand calls it an innovation. d. if it is a popular brand with a good brand image. e. only by the individuals who have purchased it.

b. only if it is perceived so by consumers.

25. Manson used to rent DVDs to watch movies. He has recently switched to downloading or streaming movies from the Internet and watching them on his smartTV. This change in his media consumption method is due to: a. a personalized marketing method. b. the innovation in media technology. c. the diversity in consumption patterns. d. the packaging method of media. e. a change in the function of media.

b. the innovation in media technology.

73. Which of the following characteristics of a social system could result in the slowing of an innovation's diffusion? a. A high degree of modernity b. A high degree of homophily c. A high degree of physical distance between members d. A high degree of trialability of the innovation e. A high degree of compatibility of the innovation

c. A high degree of physical distance between members

57. Which of the following is true of innovators? a. They are known to plan carefully. b. They deliberate for a long time. c. They do less planning and deliberation. d. They engage in attribute-based decision making. e. They use whole evaluations while making decisions.

c. They do less planning and deliberation.

41. Which of the following is true of symbolic innovations? a. They offer benefits in product performance over existing alternatives. b. They appeal to our pleasure-seeking and/or sensory needs. c. They have new social meaning carried by their use and ownership. d. They are only incremental improvements. e. They usually spawn other innovations and product forms.

c. They have new social meaning carried by their use and ownership.

28. Marketers classify innovations in three main ways: (1) the degree of novelty, (2) the type of benefits offered, and (3) the: a. styles available. b. features affected. c. breadth of innovation. d. length of time to adoption. e. size of potential market.

c. breadth of innovation.

33. YapSnap.com is a social media website which allows its members to chat and send pictures to each other via private messages. YapSnap can be considered to be a _____ because it changes the way one communicates with other people. a. dynamically discontinuous innovation b. continuous innovation c. dynamically continuous innovation d. discontinuous innovation e. hedonic innovation

c. dynamically continuous innovation

49. The _____ are visionaries in the product category, and they admire a technologically new product for its abilities to create a revolutionary breakthrough in how things are done. a. laggards b. innovators c. early adopters d. late-majority consumers e. early-majority consumers

c. early adopters

60. The _____ starts out quickly, with a large percentage of the market purchasing as soon as possible. a. bell-shaped diffusion curve b. S-shaped diffusion curve c. exponential diffusion curve d. linear diffusion curve e. M-shaped diffusion curve

c. exponential diffusion curve

66. A _____ is a successful innovation that has a very short product life cycle. a. blip b. flash c. fad d. fashion e. classic

c. fad

67. In the 1980s, almost everybody owned a novelty called a Sound Boxer. This product was a musical device that played a musical note at the press of a button. The sales of this product rapidly grew and just as rapidly fell. In terms of the Product Life Cycle, the Sound Boxer was a: a. classic. b. fashion. c. fad. d. contagion. e. laggard.

c. fad.

71. Among factors that influence resistance, adoption, and diffusion, _____ refers to the extent to which an innovation follows established guidelines for what seems appropriate in the category. a. simplicity b. adaptability c. legitimacy d. fungibility e. guidability

c. legitimacy

44. Mark is a graphic designer. He has an aversion toward tablets. He refused to buy a tablet even when all his friends bought one. He continued to refuse even when his boss pressured him to buy a tablet, as the company was to start doing all their design work on tablets. In the context of consumer behavior, Mark's behavior is an example of: a. insistence. b. arbitraging. c. resistance. d. scheming. e. referencing.

c. resistance.

48. With low-effort hierarchy of effects, attitudes are based on: a. first impression. b. attractive advertising. c. trial experience. d. peer pressure. e. hedonic desires.

c. trial experience.

34. A discontinuous innovation is defined as: a. a product that pushes all similar products out of the market. b. a product that disrupts consumers' lives. c. a product that disrupts a firm's marketing operations. d. a product that is so new that we have never known anything like it before. e. a product that has new social meanings carried by its use and ownership.

d. a product that is so new that we have never known anything like it before.

54. Innovators adopt innovations independent of the opinions of other people, and they tend to: a. be easily influenced by their reference group. b. be easily influenced by their peer group. c. be ignorant about new products. d. be more receptive to information about new products. e. be less receptive to information about new products.

d. be more receptive to information about new products.

35. Fly-Away Airlines is one of the earliest airline companies. It has received many awards due to the effect it has on how, when, and where passengers travel. At the time when Fly-Away Airlines was introduced in the market, it was regarded as a: a. symbolic innovation. b. continuous innovation. c. dynamically continuous innovation. d. discontinuous innovation. e. hedonic innovation.

d. discontinuous innovation.

51. The _____ are more conservative, wary of progress, and rely on tradition. a. laggards b. innovators c. early adopters d. late-majority consumers e. early-majority consumers

d. late-majority consumers

45. In the context of consumer behavior, resistance refers to: a. the degree of consumer anger over dangerous products. b. the difficulty faced by consumers while using hi-tech products. c. the slowness of marketing communications to build up a brand image. d. the desire to not buy an innovation, even in the face of pressure to do so. e. the refusal of consumers to remember the brand name of products bought on sale.

d. the desire to not buy an innovation, even in the face of pressure to do so.

42. Jonathan always wore horned-rimmed glasses when he was in school and was always ridiculed because of them. However, in college, he was praised for his smart and intelligent looking glasses even though he wore the same kind of glasses. Horned- and wire-rimmed glasses were considered old-fashioned until they became associated with intellectualism in the 1980s. From the above scenario, it can be understood that when Jonathan entered college his glasses were perceived as a symbolic innovation because: a. the design of his glasses was observed as new. b. the features associated with his glasses were new. c. the brand name associated with his glasses was new. d. the meaning associated with his glasses was new. e. the technology associated with his glasses was new.

d. the meaning associated with his glasses was new.