Sunday, April 5, 2009

Chapter 10

Review and Applications
5.1 – Describe some products whose adoption rates have been affected by complexity, compatibility, relative advantage, observability, and and/or trialability.
- Complexity – the new Blu Ray DVD players would be an example of a product affected by complexity. These players are more technologically advanced and require the purchase of a higher definition cable that connects to the television.
- Compatibility – prescription drugs would be a product that is affected by compatibility. Some people might not believe in prescription drugs, but have no other choice if they want to keep living.
- Relative advantage – a hair straightener would be superior to the old way of fixing hair with a curling iron. Straighteners can add volume and even curl hair.
- Observability – the Croc brand of shoes and sandals that came out a few years ago would be an example of observability. They are very popular, but are also very comfortable shoes.
- Trialability – the shampoo and lotion samples that are given away in women’s magazines are examples of trailability products. People try them and if they like the new or existing product they are likely to buy them next time they visit a store.

5.2 – What type of adopter behavior do you typically follow? Explain.
I usually follow the early majority behavior. I don’t like to buy new products right away because of the price, but also because eventually there will be a new a better product. At the same time I like to have the new technology like everyone else.

6.1 – What is Cheerios doing to compete successfully in the maturity stage? Go to its Web site http://www.cheerios.com to find out.
They have catered to different ages on their website giving more of a market share. Cheerios has also started targeting adults who need to lower their cholesterol. They use the bee to cater to children. In the children section on the Web site they can download screensavers and wallpapers. They can also play games on the Web site. The company is also coming out with new flavors of cheerios. This will help target consumers who like a variety of cereals and not plain cheerios.

Web Site
The tipping point – WikiSummaries

- The children’s shows today still helping children to develop literacy.
- Cleaning up dirty areas of the city reduced crime.
- The book helped to initiate paradigm shifts in different fields.
- Gladwell identifies three key factors that play a role in whether a particular trend will tip. The factors are the Law of the Few, the Stickiness Factor, and the Power of Context.
- The reasons some trends fail have been thought to be mysterious.

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