C

Innovators are those buyers who want to be the first on the block to have the new product or service. These buyers enjoy taking risks and are regarded as highly knowledgeable. Innovators are crucial to the success of any new product or service because they help the product gain market acceptance. Through talking about and spreading positive word of mouth about the new product, they prove instrumental in bringing in the next adopter category, early adopters.

True

B

The five power bases include reward power, coercive power, legitimate power, expert power, and referent power. Reward power refers to a person's ability to influence the behavior of others by offering them something desirable. Reward power can get people to change their behavior in the long run but is not as effective in the short run as coercive power. Coercive power penalizes actions or behaviors to induce change. It is highly effective in the short run. However,followers get resentful in the long run and coercive power tends to fall apart. Legitimate power stems from the belief that a person has the right to exert influence and certain others have an obligation to accept it. A boss often has legitimate power. Many people tend to acquiesce to individuals perceived to have legitimate power. Expert power is derived from a person's knowledge (or a perception that a person possesses knowledge). Expert power has high credibility among followers. Referent power may exist when one person perceives that his or her goals or objectives are similar to another's. Identification with others helps boost the decision maker's confidence.

False

(a) (b)