Consumer Behaviour and Innovation Strategies
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Questions and Answers

What role do information sources play in the adoption process of products?

  • They only come from the company bringing the product to market.
  • They are irrelevant to potential consumers.
  • They slow down the adoption process.
  • They provide essential information to potential consumers. (correct)

    • What factor has contributed to the acceleration of the adoption process in recent years?

  • Reduced competition among product providers.
  • Higher costs associated with new technologies.
  • Increased government regulation.
  • The availability of information through the Internet and social networks. (correct)

    • How did the penetration of the Internet on mobile devices change from 2009 to 2012?

  • It rose but at a slower rate compared to landlines.
  • It tripled over the three years. (correct)
  • It remained unchanged during that period.
  • It experienced a decrease in usage.

    • What is the significance of the timeline from 1992 to 1998 regarding Internet users in Spain?

    <p>It illustrates the slow adoption rate of the Internet during that time.</p> Signup and view all the answers

    Which of the following statements best reflects the current trend in the adoption process of new technologies?

    <p>Adoption processes are becoming faster.</p> Signup and view all the answers

    What characteristic is commonly associated with innovative consumers?

    <p>They have a high need for uniqueness.</p> Signup and view all the answers

    How do innovative consumers generally perceive risk?

    <p>They perceive lower risks than average consumers.</p> Signup and view all the answers

    Which trait best describes the purchasing behavior of innovative consumers?

    <p>They exhibit a search for variety.</p> Signup and view all the answers

    Innovative consumers are described as being:

    <p>Internally directed and independent.</p> Signup and view all the answers

    Which statement about innovative consumers' personalities is true?

    <p>They are adventurous and socially active.</p> Signup and view all the answers

    What is an important marketing strategy for appealing to innovative consumers?

    <p>Highlighting the novelty and uniqueness of the product.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of innovative consumers?

    <p>Outwardly focused decision-making.</p> Signup and view all the answers

    What behavior is expected from innovative consumers in relation to brand loyalty?

    <p>They are more unfaithful consumers than average.</p> Signup and view all the answers

    What characteristic describes innovative customers in terms of product usage?

    <p>They buy large quantities of products they innovate with.</p> Signup and view all the answers

    What is the first stage in the adoption process?

    <p>Knowledge</p> Signup and view all the answers

    During what stage of the adoption process does a consumer weigh the pros and cons of trying a product?

    <p>Evaluation</p> Signup and view all the answers

    What attracts innovative customers to new products or brands?

    <p>Promotions such as coupons and free samples</p> Signup and view all the answers

    What happens during the 'Test' phase of the adoption process?

    <p>The consumer actively tries the product.</p> Signup and view all the answers

    Which of the following describes the difficulty of retaining innovative customers?

    <p>They get bored with the same brand or product over time.</p> Signup and view all the answers

    How can companies minimize risk during the evaluation stage of the adoption process?

    <p>By offering guarantees or refund promises.</p> Signup and view all the answers

    What defines heavy users of a product category?

    <p>Consumers who consume more than the average in that product category.</p> Signup and view all the answers

    What characterizes early adopters in comparison to innovators?

    <p>They are reflective and value product usefulness.</p> Signup and view all the answers

    Which statement best describes the late majority of consumers?

    <p>They often adopt innovations under social pressure.</p> Signup and view all the answers

    What is a common trait of laggards in terms of technology adoption?

    <p>They prefer sticking to traditional methods.</p> Signup and view all the answers

    How do early adopters' price sensitivities compare to the average consumer?

    <p>They are less price sensitive than the average consumer.</p> Signup and view all the answers

    What influences the laggards the most when considering a new product?

    <p>The necessity of replacing a non-functional product.</p> Signup and view all the answers

    What percentage of the population do early adopters make up?

    <p>Approximately 13.5%.</p> Signup and view all the answers

    What is a distinguishing feature of late majority consumers compared to early adopters?

    <p>They adopt products mainly based on price benefits.</p> Signup and view all the answers

    Which of the following groups is primarily characterized by a strong aversion to risk?

    <p>Laggards.</p> Signup and view all the answers

    What is one of the key definitions of innovation according to the Oslo Manual?

    <p>Using or generating knowledge to improve existing products, services, or processes.</p> Signup and view all the answers

    According to the OECD, what is a necessary condition for a product to be considered innovative?

    <p>The product must achieve success in the market.</p> Signup and view all the answers

    What is the most common form of innovation?

    <p>Improving existing products through added features.</p> Signup and view all the answers

    What benefit did mobile terminals provide over fixed terminals?

    <p>Increased mobility.</p> Signup and view all the answers

    In what way can innovation be analyzed from the consumer's perspective?

    <p>By evaluating its efficiency in satisfying consumer needs.</p> Signup and view all the answers

    What is an example of a significant improvement in mobile technology?

    <p>Enhancing battery duration and adding features.</p> Signup and view all the answers

    From a company's viewpoint, how is innovation defined?

    <p>The product must be a new creation for the company.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of innovation?

    <p>Always involves the creation of something entirely new.</p> Signup and view all the answers

    What does the term 'perceived relative advantage' refer to in the context of product adoption?

    <p>The belief that a new product is superior to existing substitute products.</p> Signup and view all the answers

    Why is adaptation to the need important for product adoption?

    <p>It enhances compatibility with consumer lifestyles and values.</p> Signup and view all the answers

    What impact does complexity have on the adoption of a product?

    <p>Simpler products tend to have a quicker adoption process.</p> Signup and view all the answers

    What is a common consumer concern regarding rapid obsolescence in technology?

    <p>They fear buying products that may quickly become outdated.</p> Signup and view all the answers

    How can social fear affect the adoption of new technology products?

    <p>It may cause resistance to behavioral changes required by the product.</p> Signup and view all the answers

    Which factor is least likely to influence the perceived relative advantage of a product?

    <p>Detailed technical specifications of the product.</p> Signup and view all the answers

    What role does consumer demographics play in the complexity of product adoption?

    <p>Younger segments generally find complex technologies easier to adopt.</p> Signup and view all the answers

    In what way does complexity in technology products manifest itself?

    <p>As a perception of difficulty in understanding or using the product.</p> Signup and view all the answers

    Study Notes

    Consumer Behaviour

    • This presentation introduces innovation strategies in consumer behaviour.
    • The objectives are to analyze the process consumers use to adopt new products and incorporate them into their habits.
    • Another objective is to analyze different consumer types, including their personalities and lifestyles, in relation to innovation adoption.

    Presentation

    • Launching new products isn't always about total novelty, but rather improving existing products for better efficiency and speed.
    • Human needs have been met throughout history with various products and services.
    • Consumer adoption of new products isn't uniform, some are risk-takers (innovators) while others need more time to change habits.

    Innovation

    • Innovation, in general terms is a change that generates value, specifically the result of a complex process that brings new products/services/processes to the market.
    • The Oslo Manual (measurement of scientific technological activities) defines innovation as using knowledge to create new products or improve existing ones.
    • The OECD argues that successful innovation achieves a market presence.

    Innovation:Impact

    • Innovations should improve on the efficiency of existing products/services.
    • Improvement of existing products, as well as the introduction of entirely new products, constitute innovation.
    • Adding features to an existing product/service is also a form of innovation.

    Example

    • Mobile telephony is an example of innovation that started as an improvement over fixed terminals with added benefit of mobility.
    • Additions like digital cameras and music players further enriched functionality on mobile devices, advancing technology.
    • Laptops are an improvement on desktops showcasing increased portability and ease of use.

    Innovation Orientations (Points of View)

    • Company's Perspective: Innovation is when a company produces a product it hasn't before, regardless if it's a new product to the market or not.
    • Product's Perspective: Innovation occurs when a product has new attributes that directly affect consumer use.

    Innovation Orientations

    • Continuous Innovation: Changes that enhance, but don't radically alter, previous products, like adding new ingredients to a detergent or boosting phone battery life.
    • Dynamically Continuous Innovation: Significant improvements that differentiate products or services from earlier versions, such as the introduction of a touchscreen phone.
    • Discontinuous Innovation: Innovations that significantly change consumer behavior; examples like the emergence of computers, the internet, or television.

    Innovation Orientations (Market Perspective)

    • Market Perspective: A product is considered innovative in the market if a small percentage of consumers have used it (e.g. less than 5%), and has been on the market for a short time (e.g. less than three months).

    Innovation Orientations (Consumer Perspective)

    • A product is considered a novelty if the consumer perceives it as a fresh or new product.

    The Potential for Acceptance: Factors

    • Factors of Adoption Success: Success depends on factors that affect consumer's adoption of new products.

    The Potential for Acceptance: Factors

    • Perceived Relative Advantage: Consumers recognize the enhanced value compared to existing substitutes; for instance, cell phones replaced pagers.
    • Adaptation to Need: Consumers see how the product meshes with their current needs, habits, and values.
    • Complexity: Ease of use; for example, smartphones quickly gained widespread adoption when they became more user-friendly.
    • Fear of Rapid Obsolescence: Consumers worry if new innovations will promptly become obsolete, a factor that might impede product acceptance.
    • Social Fear: New products might cause social rejection or change in consumer behaviour.
    • Possibility of Proof of Novelty: Minimizing consumer risk perception through test products or temporary trial programs.

    Different Types of Customers (Users)

    • Innovators: Risk-takers who are eager to try new things and may pay more for being early adopters, often serving as product testers or explorers.
    • Initial/Early Adopters: Opinion leaders who consult with other before buying new products, and more sensitive to the product's usefulness and benefits rather than solely price.
    • Late Majority: Adoption is caused by social pressure, this group is often price-sensitive and cautious.
    • Laggard Consumers: Highly conservative consumers who are distrustful of new technologies and change products only when existing product no longer works.

    Innovative Customer Characteristics

    • Innovative Consumers: Consumers who are early adopters of new products, and are interested in that particular product category; they are influential and capable of introducing new uses to products.
    • Personality Traits: Innovators are less dogmatic, and more open to trying new things. They want to feel unique and are interested in products that stand out from the crowd. They are less risk averse compared to other consumer segments, driven by curiosity.

    Innovative Characterisitics

    • Purchasing Preferences: Innovators are often less loyal to brands, attracted by promotions (coupons and samples) typically used in the introduction stage of a product.
    • Heavy Usage: Innovative consumers tend to use products frequently and heavily.
    • Creative Usage: Innovators tend to adopt new ways and discover unique uses for products.

    The Adoption Process

    • Knowledge: The consumer becomes aware of the product.
    • Interest: The consumer expresses personal interest in the product.
    • Evaluation: The consumer considers the pros and cons of the product, the risk, and the value the product provides.
    • Trial: The consumer attempts the product or service.
    • Adoption: The consumer adopts the product.

    Adoption Process (Information Sources)

    • With the internet and social networks, potential consumers can access significant information about a new product, from the company that produces the product and from opinion leaders.

    Adoption Process (Speed)

    • Innovation can be adapted more quickly. For instance, Internet access in Spain tripled in three years. (2009 - 2012)

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    Description

    This quiz explores the strategies of consumer behaviour related to innovation. It delves into the processes consumers use to adopt new products and examines various consumer types based on their personalities and lifestyles. Understanding these aspects is crucial for successfully launching improved products in the market.

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