The diffusion of innovation theory is useful for firms because it primarily helps them:
A)survive in a market where sales come from mostly new products.
B)develop effective promotion, pricing, and other marketing strategies.
C)reduce risk by diversifying into a broad portfolio of products.
D)satisfy the needs of only current customers.
E)actively pursue and focus on laggards.

Question

Quizplus · Accepted Answer

The diffusion of innovation theory helps firms develop effective promotion, pricing, and other marketing strategies by identifying key innovators, early adopters, early majority, late majority, and laggards in the market. This allows firms to tailor their marketing efforts for each group and determine the most effective way to reach each segment. By understanding the behavior and characteristics of each group, firms can also effectively time their product launches and adjust their pricing strategies for maximum success.

The Diffusion of Innovation Theory Is Useful for Firms Because