Test bank consumer behavior 10e schiffman kanuk chapter 14

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) Adoption
B) Assumption
C) Diffusion
D) Innovation
E) Introduction
Answer: C
Diff: 2 Page Ref: 432
AACSB: Analytic Skills
Skill: Concept
Objective: 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: D
Diff: 1 Page Ref: 432
Skill: Concept
Objective: 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) Adoption
B) Assumption
C) Diffusion

D) Innovation
E) Introduction
Answer: A
Diff: 2 Page Ref: 432
AACSB: Analytic Skills
Skill: Concept
Objective: 14.1: Understand the twofold process of the spread and acceptance of innovative
products and services within a social system

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4) The first people to purchase a new product are considered ________.
A) consumer innovators
B) nonadopters
C) laggards
D) trial drivers
E) test consumers
Answer: A
Diff: 2 Page Ref: 432
Skill: Concept
Objective: 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-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented

E) development-oriented
Answer: D
Diff: 1 Page Ref: 433
Skill: Concept
Objective: 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-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Answer: D
Diff: 2 Page Ref: 433
AACSB: Reflective Thinking
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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-oriented
B) market-oriented
C) consumer-oriented

D) firm-oriented
E) development-oriented
Answer: A
Diff: 2 Page Ref: 433
AACSB: Analytic Skills
Skill: Concept
Objective: 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 innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Answer: E
Diff: 2 Page Ref: 433
AACSB: Analytic Skills
Skill: Concept
Objective: 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 innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Answer: E
Diff: 2 Page Ref: 433

AACSB: Analytic Skills
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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10) A ________ is somewhat disruptive to consumers but does not alter established behavior
patterns.
A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Answer: C
Diff: 3 Page Ref: 433
AACSB: Analytic Skills
Skill: Concept
Objective: 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 innovations
B) dynamically discontinuous innovations
C) dynamically continuous innovations
D) statically continuous innovations
E) continuous innovations

Answer: C
Diff: 3 Page Ref: 433
AACSB: Analytic Skills
Skill: Application
Objective: 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: A
Diff: 1 Page Ref: 437
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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13) A ________ requires consumers to adopt new behavior patterns.
A) discontinuous innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Answer: A
Diff: 2 Page Ref: 433

AACSB: Analytic Skills
Skill: Concept
Objective: 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 innovation
B) dynamically discontinuous innovation
C) dynamically continuous innovation
D) statically continuous innovation
E) continuous innovation
Answer: A
Diff: 2 Page Ref: 433
AACSB: Analytic Skills
Skill: Application
Objective: 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-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Answer: B
Diff: 2 Page Ref: 433
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Answer: B
Diff: 2 Page Ref: 433
Skill: Concept
Objective: 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-oriented
B) market-oriented
C) consumer-oriented
D) firm-oriented
E) development-oriented
Answer: C
Diff: 2 Page Ref: 433
Skill: Concept
Objective: 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 innovative
B) purchase innovative
C) market innovative
D) compatibly innovative
E) incompatibly innovative
Answer: A
Diff: 1 Page Ref: 434
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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 innovativeness
B) purchase innovativeness
C) market innovativeness
D) compatibly innovativeness
E) incompatibly innovativeness
Answer: A
Diff: 2 Page Ref: 434
Skill: Application
Objective: 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 cherryflavored 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: C
Diff: 2 Page Ref: 433
AACSB: Reflective Thinking
Skill: Application
Objective: 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: A
Diff: 1 Page Ref: 433
AACSB: Analytic Skills
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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: E
Diff: 2 Page Ref: 433
Skill: Application
Objective: 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 innovation
B) circular innovation
C) dynamically continuous innovation
D) straight-line innovation
E) continuous innovation
Answer: C
Diff: 2 Page Ref: 433
Skill: Application
Objective: 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: A
Diff: 3 Page Ref: 433
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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: A
Diff: 1 Page Ref: 435
AACSB: Analytic Skills
Skill: Concept
Objective: 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: A
Diff: 1 Page Ref: 435
Skill: Application
Objective: 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: B
Diff: 2 Page Ref: 435
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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: B
Diff: 2 Page Ref: 435
Skill: Application
Objective: 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: C
Diff: 1 Page Ref: 436
Skill: Concept
Objective: 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: C
Diff: 3 Page Ref: 436
AACSB: Reflective Thinking
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)

within a social system

10
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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: C
Diff: 2 Page Ref: 436
AACSB: Reflective Thinking
Skill: Application
Objective: 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 advantage
B) compatibility
C) complexity
D) trialability
E) observability
Answer: D
Diff: 2 Page Ref: 436
AACSB: Analytic Skills
Skill: Concept

Objective: 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 advantage
B) compatibility
C) complexity
D) trialability
E) observability
Answer: D
Diff: 2 Page Ref: 436
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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: E
Diff: 1 Page Ref: 436
AACSB: Analytic Skills

Skill: Concept
Objective: 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: E
Diff: 2 Page Ref: 436
Skill: Application
Objective: 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: B
Diff: 2 Page Ref: 436
AACSB: Analytic Skills
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

12

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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: B
Diff: 1 Page Ref: 436
Skill: Application
Objective: 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: C
Diff: 2 Page Ref: 438
AACSB: Analytic Skills
Skill: Concept
Objective: 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) outward
B) antiquated
C) modern
D) traditional
E) inward
Answer: C
Diff: 3 Page Ref: 439
AACSB: Analytic Skills
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

13
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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) outward
B) antiquated
C) modern
D) traditional
E) inward
Answer: D
Diff: 3 Page Ref: 439
AACSB: Analytic Skills
Skill: Concept
Objective: 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 force
B) members of the system rarely interact with outsiders
C) members see themselves as locked into a single role
D) a general respect for education and science
E) an emphasis on emotional social relationships
Answer: D
Diff: 3 Page Ref: 439
AACSB: Analytic Skills
Skill: Concept
Objective: 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 distance
B) strong uncertainty avoidance
C) value for hierarchical relationships
D) a willingness to accept uncertainty
E) a cultural value for high earnings, achievement, and assertiveness
Answer: D
Diff: 2 Page Ref: 439
AACSB: Analytic Skills
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

14
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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 time
B) Adoption time
C) Innovation time
D) Diffusion time
E) Consumer duration
Answer: A
Diff: 2 Page Ref: 439
AACSB: Analytic Skills
Skill: Concept
Objective: 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 months
B) 4 months
C) 3 months
D) 2 months
E) 1 month
Answer: C
Diff: 2 Page Ref: 439
AACSB: Analytic Skills
Skill: Concept
Objective: 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 costs
B) the desirable reasons for adoption
C) how popular the product is likely to be
D) the performance of the product
E) how many units of the product have already been sold
Answer: A
Diff: 3 Page Ref: 441
AACSB: Reflective Thinking
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

15
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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: A
Diff: 1 Page Ref: 441
Skill: Concept
Objective: 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: A
Diff: 1 Page Ref: 441
AACSB: Analytic Skills
Skill: Concept
Objective: 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: A
Diff: 2 Page Ref: 442
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

16
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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: B
Diff: 1 Page Ref: 442
AACSB: Analytic Skills
Skill: Concept
Objective: 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: C
Diff: 1 Page Ref: 442
AACSB: Analytic Skills
Skill: Concept
Objective: 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) innovators
B) early adopters

C) early majority
D) late majority
E) laggards
Answer: C
Diff: 2 Page Ref: 442
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

17
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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: D
Diff: 1 Page Ref: 442
AACSB: Analytic Skills
Skill: Concept
Objective: 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: E
Diff: 2 Page Ref: 442
AACSB: Analytic Skills
Skill: Concept
Objective: 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 adoption
E) evaluation
Answer: D
Diff: 2 Page Ref: 443
Skill: Concept
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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55) A(n) ________ involves setting a relatively low introductory price designed to discourage
competition from entering the market.

A) adopter categorization
B) adoption process
C) penetration policy
D) skimming policy
E) social system
Answer: C
Diff: 2 Page Ref: 444
Skill: Concept
Objective: 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 process
C) penetration policy
D) skimming policy
E) social system
Answer: D
Diff: 2 Page Ref: 444
Skill: Concept
Objective: 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 behavior
E) social systems
Answer: C

Diff: 1 Page Ref: 445
Skill: Concept
Objective: 14.3: Understand how individual consumers decide whether or not to try and adopt a
particularly innovative product or service

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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: A
Diff: 3 Page Ref: 450
AACSB: Reflective Thinking
Skill: Concept
Objective: 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: C
Diff: 2 Page Ref: 452
AACSB: Reflective Thinking
Skill: Application

Objective: 14.4: Understand the personal characteristics of innovators

20
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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: D
Diff: 3 Page Ref: 435
AACSB: Analytic Skills
Skill: Application
Objective: 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: A
Diff: 2 Page Ref: 441
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

21
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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: E
Diff: 2 Page Ref: 446,Table 14.4
AACSB: Analytic Skills
Skill: Application
Objective: 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-oriented
B) consumer-oriented
C) market-oriented
D) output-oriented
E) firm-oriented
Answer: E
Diff: 2 Page Ref: 433
AACSB: Analytic Skills
Skill: Application
Objective: 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 policy
B) crowding policy
C) anticompetitive policy
D) standardization policy
E) penetration policy
Answer: E
Diff: 2 Page Ref: 444
AACSB: Analytic Skills
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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 gaselectric 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: D
Diff: 2 Page Ref: 446, Table 14.4
Skill: Application
Objective: 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: D
Diff: 3 Page Ref: 442

AACSB: Reflective Thinking
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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: A
Diff: 3 Page Ref: 433
AACSB: Analytic Skills
Skill: Application
Objective: 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 innovators
D) viral marketers
E) surrogate buyers
Answer: C

Diff: 3 Page Ref: 452
Skill: Application
Objective: 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-oriented
B) product-oriented
C) market-oriented
D) adoption-oriented
E) consumption-oriented
Answer: A
Diff: 3 Page Ref: 432
Skill: Application
Objective: 14.2: Understand how innovative products and services spread (or fail to spread)
within a social system

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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: A
Diff: 3 Page Ref: 446, Table 14.4
Skill: Application
Objective: 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: B
Diff: 3 Page Ref: 446, Table 14.4
Skill: Application
Objective: 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: E
Diff: 3 Page Ref: 446, Table 14.4
Skill: Application

Objective: 14.3: Understand how individual consumers decide whether or not to try and adopt a
particularly innovative product or service

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