Cooperation with Lead Users Is a Useful Tool of Innovation

question 7

Multiple Choice

Cooperation with lead users is a useful tool of innovation management because:

• A)Lead users set the trend for the mass market
• B)Due to their price insensitivity,lead users tend to be the most profitable customers
• C)Lead users provide both information feedback and revenues that can assist ongoing product development
• D)Because lead users are so discerning,they provide both discipline and incentives

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Definitions:

Consumer Equilibrium

A condition where a consumer has allocated their income in a way that maximizes their utility, given their budget constraints and the prices of goods and services.

Utility

In economics, the total satisfaction received from consuming a good or service.

Income

Earnings received by a person or entity, typically through work, investments, or business ventures, over a specified period.

Consumer Equilibrium

The point at which the quantity of goods consumed by the consumer provides the maximum satisfaction, making utility maximization with budget constraints.