Consumer Innovation Quiz

What is the definition of innovation?

• A strategy for reducing costs

• A process of marketing existing products

• New things, ideas, and ways of behaving

• A method of increasing sales

Which of the following is NOT a type of innovation?

• Trends

• Fads

• Fashions

• Styles

What does 'relative advantage' refer to in the context of innovation?

• The ease of use of the innovation

• The popularity of the innovation

• The benefits of the innovation compared to competitors

• The cost of the innovation

What is the 'neighborhood effect' in the diffusion process?

• People adopt innovations based on their income level

• People close to the source of information adopt innovations faster

• People adopt innovations based on social media influence

• People are influenced by advertisements

What does 'discontinuance' mean?

• The introduction of a new product

• The consumer stops using a product

• The increase in product sales

• The adoption of a new trend

Which factor does NOT influence the rate of new product introduction?

• Product pricing

• Market structures

• Cultural attitudes

• Demand density

What is the 'two-step flow model'?

• A model for product pricing

• A model for market segmentation

• A model for consumer adoption of innovations

• A model for communication of new ideas

What is meant by 'psychological equilibrium'?

• The balance between supply and demand

• The equilibrium of product features

• The stability of market prices

• The desire for consistency between beliefs and behaviors

Which of the following is a characteristic that influences new product adoption?

• Complexity

• Brand loyalty

• Popularity

• Cost

What does 'trialability' refer to?

• The ability to market a product

• The ability to sell a product

• The ability to try an innovation without risk

• The ability to produce a product