Diffusion of innovation suggests that all consumers rush to buy a product when it is introduced. True False

The statement is False.

The diffusion of innovation theory, proposed by Everett Rogers, outlines how different categories of consumers adopt new products over time. It differentiates among five groups: innovators, early adopters, early majority, late majority, and laggards.

• Innovators are the first to embrace new products, usually representing a small percentage of the population.
• Early adopters follow next, often influenced by innovators.
• Early majority and late majority represent larger portions of the market and adopt products more cautiously.
• Laggards are the last to adopt, often resisting change.

This process is gradual rather than a sudden rush by all consumers at the time of introduction. The adoption can be influenced by various factors, including socio-economic status, perception of the product's advantages, and cultural factors.