Firms Try to Target Innovators While Introducing New Products into the Markets

question 10

Multiple Choice

Firms try to target innovators while introducing new products into the markets because innovators:

• A)prefer products from established market leaders.
• B)are easily influenced by advertising.
• C)are regarded by other consumers as highly knowledgeable and firms will ask for their suggestions.
• D)are considered opinion leaders and influence other majority groups.
• E)form a major group of consumers in the market.

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Definitions:

Theta

A term from options trading that describes the rate of change in an option's price with respect to the passage of time.

Elasticity

A measure of how much the demand or supply of a product changes in response to changes in price or other economic factors.

Dividend Payout

The portion of a company's earnings that is distributed to shareholders in the form of dividends, usually expressed as a percentage of the earnings.

Lower Volatility

Refers to the characteristic of an asset or portfolio to experience less fluctuation in price over time.