Test bank consumer behavior 10e schiffman kanuk chapter 14

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... A

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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

Diff: 2 Page Ref: 432

AACSB: Analytic Skills

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4) The first people to purchase a new product are considered .

6) Under the approach to defining innovation, copies or modifications of a

competitor's product would qualify as new

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

B) dynamically discontinuous innovation

C) dynamically continuous innovation

D) statically continuous innovation

E) continuous innovation

Answer: E

Skill: Application

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10) A is somewhat disruptive to consumers but does not alter established behavior patterns.

A) discontinuous innovation

Answer: C

A) discontinuous innovations

B) dynamically discontinuous innovations

C) dynamically continuous innovations

D) statically continuous innovations

E) continuous innovations

Answer: C

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13) A requires consumers to adopt new behavior patterns.

A) discontinuous innovation

Answer: A

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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.

18) A consumer is being when he or she uses a previously adopted product in a novel

or unusual way, or very extensively

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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 .

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22) Hershey has traditionally made its Kisses from solid milk chocolate When Hershey came outwith Kisses with almonds in them, this constituted

23) The development of MP3 players, when consumers were used to listening to their music on

CD or cassette tape players, constitutes

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25) The degree to which potential customers perceive new product as superior to existing substitutes is its

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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

Skill: Application

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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 .

Skill: Concept

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

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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

Skill: Concept

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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

Skill: Concept

Objective: 14.2: Understand how innovative products and services spread (or fail to spread)

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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

Skill: Concept

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

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

Skill: Concept

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43) refers to the amount of time that elapses between consumers' initial awareness of anew product or service and the point at which they purchase or reject it.

Skill: Concept

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) 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

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46) Innovators, early adopters, early majority, late majority, and laggards are all A) adopter categories

Skill: Concept

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

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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.

Skill: Concept

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

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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.

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

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

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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

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

Skill: Application

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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

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62) At the end of the COPY MINI CASE, Ken has reached the stage of the adoption process

Diff: 2 Page Ref: 446,Table 14.4

Skill: Application

Objective: 14.2: Understand how innovative products and services spread (or fail to spread)

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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 gas- electric 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

Skill: Application

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67) In the CAR MINI CASE, the Evergreen's gas-electric hybrid motor is considered a

69) In the CAR MINI CASE, the Evergreen is considered a "new" product based on a(n) definition of product innovation

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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

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73) In the TABLE MINI CASE, the is three weeks

C) statically continuous innovation

D) dynamically continuous innovation

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77) Use innovativeness involves meeting an old need with a new product specifically designed for that purpose

Answer: FALSE

AACSB: Multicultural and Diversity

Skill: Concept

80) How quickly an innovation spreads through a market depends to a great extent on

communications between the marketer and consumers, as well as communication among consumers

Answer: TRUE

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82) Marketers should disregard the orientation of their target consumers' social system when seeking to gain acceptance for their new products.

Answer: FALSE

Skill: Concept

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