The Concept of the Diffusion of Innovation Shows How a Product

question 371

Multiple Choice

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are deliberate adopters with many informal social contacts are called

• A)innovators.
• B)early adopters.
• C)early majority.
• D)late majority.
• E)laggards.

---

Definitions:

Transitory Income

Income that is temporary or not consistent, such as bonuses, gifts, or any other earnings that are not regular or guaranteed.

Absolute Level

A specific, fixed point or quantity that is not relative or compared to any other point or quantity.

Federal Government

The national government of a federated state, which shares powers with subnational governments under a system of federalism.

Maximin Criterion

A decision rule used under uncertainty, focusing on maximizing the minimum payoff or outcome.