MARK 3000 Chapter 12 Flashcards
why do firms create new products?
- changing consumer needs
- market saturation
- managing risk through diversity
- fashion cycles
- improving business relationships
the product mix is…
constantly changing
why is the product mix constantly changing?
consumers adopt products at different speeds and products remain viable for different lengths of time
what is diffusion of innovation?
consumers adopt products at different speeds; people buy into a product at different places within a product launch
who are innovators?
the first group to buy a new product (willing to take the risk and make initial reviews)
who are early adopters?
want to be at the beginning of the product launch, but do not want to be first (very important, period where kinks in product are fixed)
who are early majority?
get the benefit of more competition and lower prices, want kinks to be worked out and pushes sales as far as it will go
who are late majority?
where the sales begin to decline, marginal competitors realized products are not worth it anymore
who are laggards?
very risk averse and hesitant to try something new, “do not get the hype”
the first year they were offered, john wanted a tablet computer, but he did not know which one to choose. he waited until there were more choices, lower prices, and improved quality. john is part of the ___________ diffusion of innovation group.
early majority
tiffany always asks samantha about beauty supply products. she considers her a well-informed friend who always knows the latest trends. for tiffany, samantha is a(n) ___________ in the diffusion of innovation curve
innovator
denise and janet attend a large university in texas. denise asked for janet’s e-mail address, but janet said she didn’t have one. janet would probably be considered a(n) ___________ in the diffusion of innovation process.
laggard
____ radically change completion and consumer preferences
pioneers
what are some examples of pioneers?
- apple MP3 player
- air fryer
- microwave oven
what are the 4 factors that affect product diffusion?
- relative advantage
- compatibility
- observability
- complexity and trialability
