There Are Several Reasons a Consumer Might Be Reluctant to Adopt

question 332

Multiple Choice

There are several reasons a consumer might be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a usage barrier, which occurs when

• A) there is no incentive to change.
• B) there are physical, economic, or social risks.
• C) there are cultural differences.
• D) the financial commitment is too great.
• E) the product is not compatible with existing habits.

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Definitions:

CIFP Course Materials

Comprehensive learning materials provided for the Certified Financial Planner (CIFP) program covering financial planning, investment strategies, and ethical practices.

Ordinary Annuity

A financial product where payments are made at the end of each period for a fixed amount of time.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the discounting of future income streams or liabilities.

Compounded Annually

Interest that is calculated once a year and added to the principal, meaning each year's interest earns interest in subsequent years.