Ch07 Group Influences on Consumer Behavior

Chapter 7 Group Influences on Consumer Behavior Multiple Choice Questions 1. Consumers who purchase a Harley-Davidson motorcycle can receive which of the following in addition to the purchase of the product? A) membership in a group B) a 20 year warrantee C) free maintenance for five years D) invitations to Harley Jamborees, Harley 101 safety courses, and Camp Harley E) greater attention from the police Answer: A Page: 227 2. Two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behaviors are interdependent is known as a(n) _____. A) family B) organization C) group D) cohort E) generation Answer: C Page: 228 3. Tara is a marketing professor and is a member of the American Marketing Association. The members of this organization are associated with the discipline of marketing, either as academicians or as practitioners. The purpose of this organization is to disseminate research about marketing, to share best practices, and to foster the professional development of marketers. The American Marketing Associate is an example of a _____. A) group B) cohort C) generation D) primary group E) consumer group Answer: A Page: 228 4. Which type of group's presumed perspectives or values are being used by an individual as the basis for his or her current behavior? A) cohort group B) generation group C) community group D) reference group E) modeling group Answer: D Page: 228 5. Which criterion is used to classify groups? A) membership B) strength of social tie C) type of contact D) attraction E) all of the above Answer: E Page: 228 6. Which of the following is NOT a criterion used to classify groups? A) membership B) strength of social tie C) number of members D) type of contact E) attraction Answer: C Page: 228 7. Which group classification variable refers to the closeness and intimacy of the group linkages? A) membership B) strength of social tie C) number of members D) type of contact E) attraction Answer: B Page: 228 8. Which type of group includes family and friends and involves strong ties and frequent interaction? A) primary group B) secondary group C) consumer group D) reference group E) intimate group Answer: A Page: 228 9. Angie is a teenager, living at home with her parents and two brothers. Even though she wants to venture out more on her own, her parents will not allow it, and she obeys their wishes. Her family represents a(n) _____ group. A) primary group B) secondary group C) consumer group D) restrictive group E) intimate group Answer: A Page: 228 10. Which type of group includes organizations such as professional associations and neighborhood associations that involve relatively weak ties and less frequent interaction among its members? A) primary group B) secondary group C) tertiary group D) cohort group E) work group Answer: B Page: 228 11. As a marketing major, Stan is a collegiate member of the American Marketing Association. This association holds a collegiate conference every year, and he did attend it one year. While this is a group he belongs to, his ties to other members are relatively weak, and his interaction is infrequent. Which type of group is this? A) primary group B) secondary group C) tertiary group D) cohort group E) work group Answer: B Page: 228 12. Groups with negative desirability are referred to as _____. A) primary reference groups B) secondary reference groups C) dissociative reference groups D) aspiration reference groups E) unattractive reference groups Answer: C Page: 229 13. Bob is somewhat of a loner in high school. He really despises the school “jocks” that seem to be involved in every sport. He doesn't want anything to do with them or be like them in any way. To Bob, the group of students who represent the school athletes are a(n) _____. A) primary reference group B) secondary reference group C) dissociative reference group D) aspiration reference group E) unattractive reference group Answer: C Page: 229 14. Individuals frequently purchase products thought to be used by a desired group in order to achieve actual or symbolic membership in the group. This type of group is referred to as a(n) _____. A) primary reference group B) secondary reference group C) dissociative reference group D) aspiration reference group E) attractive reference group Answer: D Page: 229 15. Amanda is in junior high and begged her mother to buy her a certain brand of athletic shoe that all the “cool” kids in school were wearing. She thought that if she had those shoes, she would be accepted as one of them. To Amanda, these other students in school that she wants to be associated with represent a(n) _____. A) primary reference group B) secondary reference group C) dissociative reference group D) aspiration reference group E) attractive reference group Answer: D Page: 229 16. Which group of teens sees themselves and others as cool and at the center of the action? A) influencers B) conformers C) market leaders D) trend setters E) market mavens Answer: A Page: 229 17. Lisa and her friends see themselves as cool and at the center of the action in their high school. Which group of teens best describes Lisa and her friends? A) influencers B) conformers C) market leaders D) trend setters E) market mavens Answer: A Page: 229 18. Which group of teens has a high need for acceptance and adapts their behaviors and purchases to fit in with the group of teens that is seen as cool and at the center of the action? A) influencers B) conformers C) market followers D) trend copiers E) market mavens Answer: B Page: 229 19. Carol is a little shy and has a high need for acceptance. She adapts her behavior and purchases to fit in with the group of teens that are seen as cool and at the center of the action? Which group of teens best describes Carol? A) influencers B) conformers C) market followers D) trend copiers E) market mavens Answer: B Page: 229 20. A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity is known as a _____. A) cohort group B) clone group C) dissociative reference group D) consumption subculture E) purchase consortium Answer: D Page: 229-230 21. Which of the following is a characteristic of a consumption subculture? A) an identifiable, hierarchical social structure B) a set of shared beliefs or values C) unique jargon, rituals, and modes of symbolic expression D) a and b E) a, b, and c Answer: E Page: 230 22. Which of the following statements is FALSE regarding consumption subcultures? A) These groups have an identifiable, hierarchical social structure. B) These groups have a set of shared beliefs or values. C) These groups have a unique jargon, rituals, and modes of symbolic expression. D) They are reference groups for their members as well as those who aspire to join or avoid them. E) Consumption must be shared physically to be a shared ritual that creates and sustains a group. Answer: E Page: 230 23. Harley-Davidson motorcycle owners that join a Harley group, Jeep owners that attend events sponsored by Jeep, and Star Trek “Trekkies” are all examples of _____. A) cohort groups B) clone groups C) dissociative reference groups D) consumption subcultures E) purchase consortiums Answer: D Page: 229-230 24. A nongeographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm is known as a _____. A) brand community B) cohort group C) purchase consortium D) clone group E) census track Answer: A Page: 231 25. Todd purchased a Harley-Davidson motorcycle because he identifies himself with what he feels is the typical owner of a Harley. Many other owners of this brand also feel this way, and they get upset when they see someone riding one who they think is not the “right” kind of person to own this brand. Which characteristic of brand communities does this illustrate? A) consciousness of kind B) rituals and traditions C) moral responsibility D) similarity E) brand fanaticism Answer: A Page: 232 26. Which of the following statements is true regarding brand communities? A) Brand communities seem most relevant for low-involvement, routinely-purchased products. B) Once a consumer becomes a member of a brand community, he or she is always a member. C) One condition for a strong brand community appears to be a degree of uniqueness to the brand itself. D) Brand communities can add value to the ownership of the product, but they do not build loyalty. E) Fostering a community requires the owners of the brand to come together on their own to establish relationships. Answer: C Page: 231-232 27. A _____ is a gathering of owners and others for the purposes of interacting with one another in the context of learning about and using the brand. A) consumption gathering B) convention C) consortium D) brand community E) brandfest Answer: E Page: 233 28. Jeep Jamboree, Jeep 101, and Camp Jeep, in which owners of Jeeps gather for the purposes of interacting with one another in the context of learning about and using their Jeeps, are examples of a _____. A) consumption gathering B) convention C) consortium D) brand event E) brandfest Answer: E Page: 233 29. Which type of community interacts over time around a topic of interest on the Internet? A) brand community B) virtual community C) cyber community D) techie community E) geek squad Answer: B Page: 233 30. Jill is a breast cancer survivor. She posts a blog, which is her online journal, on a site that is specifically for others to share their experiences and support one another. She and others discuss products that help them deal with the side effects of their treatments as well as products that can help them maintain their self-esteem (e.g., wigs). Jill is participating in a(n) _____. A) online consortium B) virtual community C) consumption subculture D) subversive community E) electronic community Answer: B Page: 233 31. Which of the following are the three types of virtual group members? A) influencers, conformers, seekers B) dissociative, aspiration, and participants C) leaders, participants, and lurkers D) informational, influencers, and lurkers E) primary, secondary, and tertiary Answer: C Page: 234 32. Which type of virtual group members are a relatively small group who are highly influential and take on the most responsibility for community maintenance, and they are active members in that they both post and respond to messages? A) influencers B) leaders C) coordinators D) actives E) Internet mavens Answer: B Page: 234 33. Stephen is an active member of a virtual community in that he posts and responds to messages. He is also one of the few who are highly influential and take on the most responsibility for the community's maintenance. Which type of virtual group member is Stephen? A) influencer B) conformer C) leader D) participant E) lurker Answer: C Page: 234 34. Which type of virtual group member is active but not deemed a leader? A) conformers B) participants C) lurkers D) members E) influencers Answer: B Page: 234 35. Howard is a participant in a virtual community, but he and others do not see him as a leader. Which type of virtual group member is Howard? A) conformer B) participant C) lurker D) member E) influencer Answer: B Page: 234 36. The largest group of virtual group members that only passively peruse the group discussions without being active participants is known as _____. A) conformers B) participants C) leaders D) lurkers E) passives Answer: D Page: 234 37. Vicki likes to visit a virtual community, called Fanfiction.com, and read the stories that others post on this site. She doesn't really visit very often, and she has never posted a story on this site. Vicki is which type of virtual group member? A) conformer B) participant C) lurker D) viewer E) intermittent Answer: C Page: 234 38. Which type of influence occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information? A) transient B) informational C) normative D) identification E) substantive Answer: B Page: 235 39. Jamarcus was his collegiate chapter's delegate at a national conference of a professional business fraternity, Phi Chi Theta, in which he is a member. When the business meeting was conducted, parliamentary procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the others to learn how he should behave in this situation. What type of influence does this reference group exhibit? A) transient B) substantive C) informational D) legal E) procedural Answer: C Page: 235 40. Which type of reference group influence occurs when an individuals fulfills group expectations to gain a direct reward or to avoid a sanction? A) informational B) normative C) identification D) transient E) permanent Answer: B Page: 236 41. Amie usually wears a uniform to her Catholic school, but on the first Friday of every month, students can wear other clothes as long as they bring in something for the church's food bank. Amie loves to shop and has plenty of fashionable clothes, but on these free dress days, she usually wears blue jeans, a T-shirt, and athletic shoes. Her mother asked her why she doesn't wear her nice clothes, and Amie told her that she would be made fun of at school. Which type of influence do the other students have on Amie? A) informational B) normative C) identification D) conformist E) punitive Answer: B Page: 236 42. Normative influence is sometimes referred to as _____ influence. A) utilitarian B) coercive C) functional D) value-expressive E) conformist Answer: A Page: 236 43. Which type of reference group influence occurs when individuals have internalized the group's values and norms? A) informational B) normative C) identification D) utilitarian E) affective Answer: C Page: 236 44. Identification influence is also called _____ influence. A) informational B) normative C) value-expressive D) affective E) utilitarian Answer: C Page: 236 45. Valerie and her family are members of the Baptist church. They have accepted the Baptist church's values as their own and behave in a manner consistent with the church's values because their values and the church's values are the same. Which type of influence does the church possess with respect to Valerie and her family? A) informational B) exemplary C) identification D) utilitarian E) affective Answer: C Page: 236 46. Which of the following is a factor determining a reference group's influence on a consumer? A) whether or not the product is a necessity B) whether the use of the product or brand is visible to the group C) the degree of commitment the individual feels to a group D) the individual's confidence in the purchase situation E) all of the above Answer: E Page: 238 47. In which of the following consumption situations will a reference group's influence be strongest? A) when the use of the product or brand is visible to the group B) when the product is a necessity C) when the consumer is confident in the purchase situation D) when the individual's commitment to the group is low E) when the reference group is large Answer: A Page: 238 48. For which product category would a reference group's influence be strongest? A) vitamins B) toilet tissue C) running shoes D) insurance E) clothes washer Answer: C Page: 238 49. In experiments, the power of groups to influence an individual to agree with the incorrect judgment of the others is known as the _____. A) group effect B) Asch phenomenon C) Skinner effect D) Pavlov phenomenon E) follower effect Answer: B Page: 239 50. Which type of reference group influence do marketers use when developing advertisements? A) informational B) normative C) identification D) a and b E) a, b, and c Answer: E Page: 240 51. Which type of communication involves individuals sharing information with other individuals in a verbal form including face-to-face, phone, and the Internet? A) mass advertising B) word-of-mouth C) impersonal D) two-step E) multistep Answer: B Page: 241 52. Clara had an unpleasant experience at a local restaurant at lunch one day. She went back to work and told all her coworkers about this experience, and many of them said they would never go back to that restaurant. Which type of communication is this an example of? A) negative B) two-step flow C) multistep flow D) word-of-mouth E) indirect Answer: D Page: 241 53. Which of the following statements is FALSE regarding word-of-mouth (WOM) communications? A) It is estimated that two-thirds of all consumer product decisions are influenced by WOM. B) Negative experiences are powerful motivators of WOM. C) Going beyond satisfaction to deliver more than was expected appears to have the potential to generate substantial WOM. D) Not all personal sources are equal in value. E) Consumers generally trust advertising as much as they do WOM. Answer: E Page: 241-242 54. Individuals who filter, interpret, or provide product and brand-relevant information to their family, friends, and colleagues are known as _____. A) opinion leaders B) market mavens C) interpreters D) screeners E) market leaders Answer: A Page: 243 55. John doesn't know very much about electronic equipment, but he wanted to get his girlfriend an MP3 player for her birthday. His roommate, Hank, knows all about these types of products and made a recommendation to John. For this product category, Hank is known as a(n) _____. A) market maven B) opinion leader C) interpreter D) screener E) market leader Answer: B Page: 243 56. The process of one person receiving information from the mass media or other sources and passing it on to others is known as the _____. A) direct flow of communication B) one-step flow of communication C) two-step flow of communication D) multistep flow of communication E) impersonal/personal flow of communication Answer: C Page: 243 57. The _____ flow of communication involves opinion leaders for a particular product area who actively seek relevant information from the mass media as well as other sources. These opinion leaders process this information and transmit their interpretations of it to some members of their groups, and these group members also receive information from the mass media and other members who are not opinion leaders as well. A) direct B) two-step C) multistep D) dispersion E) inoculation Answer: C Page: 243 58. Several consumers rely on information they obtain from others they see as knowledgeable about a specific product they are interested in purchasing (i.e., opinion leaders) as well as information they learn from marketing communications (i.e., advertisements) and other people that are not experts in the product category. Which type of communication flow does this represent? A) direct B) two-step C) multistep D) rapid E) efficient Answer: C Page: 243 59. The exchange of advice and information between group members can occur _____. A) directly in the form of WOM when one individual seeks information from another B) directly in the form of WOM when one individual volunteers information C) indirectly through observation as a by-product of normal group interaction D) a and b E) a, b, and c Answer: E Page: 243 60. Jamie wants to purchase a notebook computer, but she has limited product knowledge about computers other than how to turn one on and use it. She expects to pay over $1,000 for this computers, so this is an important decision for her and she wants to make the right choice. For Jamie, this represents a(n)_____. A) enduring purchase situation B) marketing dilemma C) high-involvement purchase situation D) consumer dilemma E) Asch phenomenon Answer: C Page: 243 61. In which situation is the likelihood of an individual seeking an opinion leader high? A) high product/purchase involvement and low product knowledge B) high product/purchase involvement and high product knowledge C) low product/purchase involvement and low product knowledge D) low product/purchase involvement and high product knowledge E) low product/purchase involvement and either high or low product knowledge Answer: A Page: 244 62. Which of the following characterizes opinion leaders? A) younger B) older C) enduring involvement in the product or activity D) highly educated E) high income Answer: C Page: 244 63. Mitch seems to know everything about cars – at least that's what his friends and family think. He has been involved with cars since he was a child and even took an engine apart and put it back together again by the time he was 16 years old. He reads several publications related to cars, visits Web sites, and hangs out with others who are interested in cars as well. Due to his enduring involvement with this product category, Mitch would be considered a(n) _____. A) product maven B) opinion leader C) product fanatic D) product endorser E) market leader Answer: B Page: 244 64. Some individuals have information about many different kinds of products, places to shop, and other aspects of markets. They can be considered a special type of opinion leader and are known as _____. A) product experts B) shopping experts C) personal shoppers D) market mavens E) market leaders Answer: D Page: 245 65. Rayna provides a significant amount of information to others across a wide array of products, including durables and nondurables, services, and store type. She can provide information on product quality, sales, usual prices, product availability, store personnel characteristics, and other features of relevance to consumers. Rayna is best described as a(n) _____. A) opinion leader B) market maven C) shopping expert D) market leader E) influencer Answer: B Page: 245 66. According to Roper Starch (a market research company), the 10 percent of the population that have broad social networks that allow them to influence the attitudes and behaviors of the other 90 percent of the population are called _____. A) market mavens B) opinion leaders C) shopping experts D) market leaders E) influentials Answer: E Page: 245 67. _____ represent about 10 percent of the adult online community, but their influence is extensive as they communicate, news, information, and experiences to a vast array of people both online and offline. A) Market mavens B) Internet mavens C) E-fluentials D) Opinion leaders E) Cyber leaders Answer: C Page: 245 68. With respect to advertising, _____ can involve themes designed to encourage current owners to talk about the brand or prospective owners to ask current owners for their impressions. A) simulating B) stimulating C) parroting D) modeling E) slice of life Answer: B Page: 246 69. With respect to advertising, _____ opinion leadership can involve presenting the results of surveys showing that a high percentage of either knowledgeable individuals or typical users recommend the brand. A) simulating B) stimulating C) parroting D) modeling E) faking Answer: A Page: 246 70. _____ is defined as the exponential expansion of word-of-mouth. A) Dispersion B) Buzz C) Infection D) Gossip E) Dissemination Answer: B Page: 248 71. Which of the following is an online “pass-it-along” strategy? A) online guides B) dispersion C) blogs D) viral marketing E) e-gossip Answer: D Page: 249 72. Online opinion leaders are known as _____. A) market mavens B) online guides C) innovators D) online go-toos E) online search engineers Answer: B Page: 249 73. Several girls in the 9th grade class at a small private school maintained an online journal. In this journal, some negative comments about the school were made, and the principle made them discontinue this online journal. The principle was concerned because anybody can read these comments as long as they know the address. Personalized online journals where people and organizations can keep a running dialogue such as the one illustrated here are known as _____. A) search engines B) diaries C) blogs D) viral marketing sites E) cyber diaries Answer: C Page: 249 74. Adoption of which type of innovation requires relatively minor changes in behavior or changes in behaviors that are unimportant to the consumer? A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) technological innovation E) nontechnological innovation Answer: A Page: 250 75. Leigh received a digital camera for her birthday. She was able to figure this product out pretty easily because it only required a moderate change in how she used to take pictures. One thing she had to get used to was printing the pictures instead of taking a role of film to a processor. This is an example of a _______ innovation. A) continuous B) dynamically continuous C) discontinuous D) technological E) nontechnological Answer: B Page: 251 76. When purchasing an innovation, individual consumers presumably go through a series of distinct steps or stages known as the _____. A) product life cycle B) consumer life cycle C) adoption process D) consumption process E) diffusion of innovations Answer: C Page: 251 77. The manner in which innovations spread throughout a market is referred to as the _____. A) adoption process B) consumer decision making process C) innovation process D) diffusion process E) dissemination process Answer: D Page: 253 78. Which of the following is a factor affecting the spread of innovations? A) type of group B) type of decision C) compatibility D) observability E) all of the above Answer: E Page: 254 79. Which factor affecting the spread of innovations refers to the consistency with the individual's and group's values or beliefs? A) relative advantage B) complexity C) compatibility D) observability E) type of decision Answer: C Page: 254 80. Which of the following is NOT an adopter category? A) innovators B) early adopters C) early majority D) late majority E) procrastinators Answer: E Page: 256 81. Which adopter group represents the first 2.5 percent to adopt an innovation? A) innovators B) early adopters C) early majority D) late majority E) laggards Answer: A Page: 256 82. Charles was the last person on his block to purchase a color television set, and that was in the 1980s. He just couldn't see the reason to purchase a new color television if his old one was working just fine. He finally purchased one because his old TV stopped working. In terms of adopter categories, Charles would be classified as a(n) _____. A) innovator B) early adopter C) early majority D) late majority E) laggard Answer: E Page: 257 83. Potential obstacles to rapid market acceptance of an innovation are known as _____. A) diffusion delayers B) laggards C) diffusion inhibitors D) diffusion detractors E) minimizers Answer: C Page: 258 True/False Questions 84. A reference group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Answer: True Page: 228 85. Dissociative reference groups can influence behavior just as do those with positive desirability. Answer: True Page: 229 86. A brand community is a geographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm. Answer: False Page: 231 87. Brand communities are relevant for basically any type of products. Answer: False Page: 232 88. An e-community is a community that interacts over time around a topic of interest on the Internet. Answer: False Page: 233 89. Lurkers are the largest group of virtual group members and only passively peruse the group discussions without being active participants. Answer: True Page: 234 90. Reference group influence can take three forms: informative, normative, and identification. Answer: True Page: 235 91. Group influence is strongest when the use of the product or brand is visible to the group. Answer: True Page: 238 92. Positive experiences are more powerful motivators of WOM than are negative experiences. Answer: False Page: 242 93. Enduring involvement leads to enhanced knowledge about and experience with the product category or activity. Answer: True Page: 244 94. Generalized market influencers are referred to as opinion leaders. Answer: False Page: 245 95. Advertising can stimulate and simulate word-of-mouth but not opinion leadership. Answer: False Page: 246 96. Buzz is generally supported by large advertising budgets. Answer: False Page: 248 97. Adoption of a discontinuous innovation requires major changes in behavior of significant importance to the individual or group. Answer: True Page: 251 98. The more the purchase and use of an innovation are consistent with the individual's and group's values or beliefs, the more rapid the diffusion. Answer: True Page: 254 Essay Questions 99. There are several types of groups that influence individual's beliefs, attitudes, and behaviors. Discuss three different types of groups that can influence consumers. Page: 228-233 Answer: The chapter defined several types of groups, and students can discuss any three of the following: Reference group--a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behavior. Primary group--includes family and friends and involves strong ties and frequent interaction and often wields considerable influence. Secondary group--involves weaker ties and less frequent interaction (e.g., professional and neighborhood associations). Dissociative reference group--a group with negative desirability. Aspiration reference group--a nonmembership group with a positive attraction. Consumption-based group, or consumption subculture--a distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity. Brand community--a nongeographically bound community, based on a structured set of social relationships among owners of a brand and the psychological relationship they have with the brand itself, the product in use, and the firm. Virtual community--a community that interacts over time around a topic of interest on the Internet. 100. You are a marketing manager and want to use the power of reference groups to influence consumers. Reference group influence can take three forms. Name and describe each, and explain how you could use each type of influence in an advertisement. Page: 235-236 Answer: Reference group influence can take three forms: informational, normative, and identification. Informational influence occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information. This influence is based on either the similarity of the group's members to the individual or the expertise of the influencing group member. An ad that depicts typical members of a group or an expert explaining the benefits of a brand could provide relevant information to consumers. Normative influence, sometimes referred to as utilitarian influence, occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction. This type of influence is strongest when individuals have strong ties to the group and the product involved is socially conspicuous. Ads that promise social acceptance or approval if a product is used (or nonacceptance or disapproval if it not used) are relying on normative influence. Identification influence, also called value-expressive influence, occurs when individuals have internalized the group's values and norms. Advertisers need to understand the values of their target audience so as to mirror those back in their advertisements. 101. Discuss the five determinants of the degree of reference group influence on a consumer. Page: 237-238 Answer: Group influence is strongest when the use of the product or brand is visible to the group. Reference group influence is higher the less of a necessity an item is. In general, the more commitment an individual feels to a group, the more the individual will conform to the group norms. The more relevant a particular activity is to the group's functioning, the stronger the pressure to conform to the group norms concerning that activity. The individual's confidence in the purchase situation also affects the degree of reference group influence. 102. Compare and contrast the categories of innovations, and give an example of each. Page: 250-251 Answer: Any new product can be placed somewhere on a continuum ranging from no change to radical change, depending on the target market's perception of the item. This continuum is often divided into three categories or types of innovations: Continuous Innovation--adoption requires relatively minor changes in behavior or changes in behaviors that are unimportant to the consumer. Examples of this type of innovation are the addition of a whitening agent in toothpaste, DVD players, or a new type of snack bar. Dynamically Continuous Innovation--adoption requires a moderate change in an important behavior or a major change in a behavior of low or moderate importance to the individual. Examples of this type of innovation include digital cameras, personal navigators, and skin lotion that also reduces the need for shaving. Discontinuous Innovation--adoption requires major changes in behavior of significant importance to the individual or group. Examples include Norplant contraceptive, becoming a vegetarian, and the Segway Human Transporter. 103. Apple recently came out with the video iPod, which allows users to download video content from the Internet. Very soon after the introduction of this innovation, television shows were made available for consumers to purchase or to obtain for free. This has brought about a rather radical change in the way viewers consume television, and some have predicted that this will create significant changes in the current business model for television networks and program producers. Discuss five of the many factors discussed in the chapter that will influence the spread of this innovation. Page: 254-255 Answer: The rate at which an innovation is diffused is a function of the following 10 factors, and students can discuss any five of them: Type of group--some groups are more accepting of change than others. In general, young, affluent, and highly educated groups accept change readily. Type of decision--this refers to an individual versus a group decision. The fewer the individuals involved in the purchase decision, the more rapidly an innovation will spread. Marketing effort--rate of diffusion is influenced by the extent of marketing efforts involved, so the rate of diffusion is not completely beyond the control of the firm. Fulfillment of felt need--the more manifest or obvious the need that the innovation satisfies, the faster the diffusion. Compatibility--the more the purchase and use of the innovation are consistent with the individual's and group's values or beliefs, the more rapid the diffusion. Relative advantage--the better the innovation is perceived to meet the relevant need compared to existing methods, the more rapid the diffusion. Complexity--the more difficult the innovation is to understand and use, the slower the diffusion. Observability--the more easily consumers can observe the positive effects of adopting the innovation, the more rapid its diffusion will be. Trialability--the easier it is to have a low-cost or low-risk trial of the innovation, the more rapid is its diffusion. Perceived risk--the more risk associated with trying an innovation, the slower the diffusion.