Final answer:
New product diffusion is influenced by marketing strategies that involve effective communication of product information and attributes. Advertising can differentiate a firm's products and increase demand, leading to higher profits. Complete information is essential for achieving market equilibrium.
Step-by-step explanation:
In the context of marketing strategies, successful new product diffusion relies on the ability to effectively communicate relevant product information and new product attributes. Marketers use various techniques to guide the rate of diffusion, including advertising and providing full information to buyers and sellers.
Advertising plays a key role in differentiating a firm's products from those of its competitors. It can either make the perceived demand curve for a product more inelastic or increase the demand for the product. A successful advertising campaign can result in higher sales volume and higher prices, thereby increasing a firm's profits.
Furthermore, in order for a market to reach equilibrium, both sellers and buyers need to have complete information about the product's price and quality. Limited information can lead to transactional difficulties or poor decision-making.