According to the Diffusion of Innovation Theory, Buyers Belonging to the Early

question 116

Multiple Choice

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

• A)they act as opinion leaders and spread the word to the next groups entering a market.
• B)they are regarded as highly knowledgeable and are not price sensitive.
• C)they affect the profitability of new products and services.
• D)they avoid change and rely on traditional products until they are no longer available.
• E)they enter a new product market when the product has achieved its full market potential.

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly tied to production.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or product.

Direct Labor

The cost of workers who are directly involved in the production of goods or services.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs such as utilities, maintenance, and salaried staff.