Innovators are a critical group of new product adopters because they:

• A. always wait for prices to fall before purchasing new products
• B. are willing to pay higher prices to try new products before others
• C. prefer products that have already been widely adopted
• D. are less influenced by consumer surplus than other groups

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the role of 'Innovators' in the context of new product adoption. Innovators are the first group of consumers to try a new product, often before it becomes widely known or accepted.
2. Step 2: Recognize that innovators are characterized by their willingness to take risks and try new products early, even if the price is higher or the product is not yet proven.
3. Step 3: Contrast innovators with other adopter groups, such as early majority or late majority, who tend to wait for prices to fall or for the product to be widely adopted before purchasing.
4. Step 4: Analyze the options given: innovators do not wait for prices to fall, they do not prefer widely adopted products, and they are influenced by consumer surplus but are willing to pay more to be first.
5. Step 5: Conclude that the defining feature of innovators is their willingness to pay higher prices to try new products before others, which explains their critical role in the diffusion of innovations.