O# 2 The process of innovation

Question 1

Diffussion of innovation

Answer 1

The process by which the use of innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters.

Question 2

Pioneers

Answer 2

New product introductions that establish a completely new market or radically change both the rules of the competition and consumer preferences in a market; also called breakthroughs.

First movers

Question 3

Disruptive innovation

Answer 3

New product introductions are simpler, less sophisticated, and usually less expensive than existing products or services.

Question 4

First movers

Answer 4

Product pioneers
First to create a market or product category, recognizable to consumers
establishing a commanding and early market share lead.

Question 5

innovators

Answer 5

Those buyers who want to be the first to have the new product or service.

Riskers
Help new product to have market acceptance

Question 6

Early adopters

Answer 6

The second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don’t like to take as much risk as innovators.

Question 7

Early Majority

Answer 7

34 % population

embers don’t like to take much risk and therefore tend to wait until bugs are worked out.

Question 8

Late majority

Answer 8

34 % of the market

The last group of buyers to enter a new product market.

Question 9

Laggards

Answer 9

16%

Consumers who like to avoid change and rely on traditional products until they are no longer available.

Question 10

Factor affecting product diffusion

Answer 10

Relative advantage
Compatibility
observability
Complexity and trability