Which of the following describes the degree to which a consumer perceives a new product as providing superior benefits? A. Relative advantage B. Trialability C. Compatibility D. Complexity E. Observability

The correct answer is letter "A": Relative advantage.

Explanation:

American Professor E.M. Rogers (1931-2004) in his book "Diffusion of Innovation" (1962) defined Relative Advantage like the degree to which a consumer observes a new product enhanced than its substitute. Nowadays the concept of relative advantage denotes the degree in which customers perceive the benefits of a new product higher than existing competitors.

The adoption of new products will rely on the relative advantage they can provide to consumers.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

the answer is: guns or butter

hope i

-lavira : )