In the context of consumer surplus and willingness to pay, what percentage of individuals in the diffusion of innovation model are typically classified as lagging adopters (also known as 'laggards')?

• A. 34%
• B. 2.5%
• C. 16%
• D. 50%

Answer: (C)

Verified step by step guidance

1. Understand the diffusion of innovation model, which categorizes adopters of a new product or technology into five groups based on their willingness to adopt: innovators, early adopters, early majority, late majority, and laggards.
2. Recall the typical percentage breakdown of these groups: innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%), and laggards (16%).
3. Focus on the laggards group, which represents the last segment to adopt an innovation, often characterized by skepticism or resistance to change.
4. Identify that laggards typically make up 16% of the population in the diffusion of innovation model.
5. Relate this percentage to consumer surplus and willingness to pay by recognizing that laggards have the lowest willingness to pay and thus adopt the innovation last.