Concept of the Diffusion of Innovation Shows How a Product

question 127

Multiple Choice

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 leaders in social settings and have slightly above average educations are called __________.

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

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Definitions:

Stock Investment

The act of spending money to purchase shares in a company, aiming to earn dividends or sell the shares at a higher price for profit.

Strike Price

The price at which an optioned stock can be bought or sold. Also called the exercise price or striking price.

Intrinsic Value

The actual worth of an asset, determined through fundamental analysis without regard to its market value.

Dividends

Corporate disbursements to its owners, usually representing a portion of the profits.