Session 2

New product development starts with _____________.

• Idea generation

• Idea screening

• Concept development

• Concept testing

A company can obtain new products through new product development. Which of the following defines new products?

• Original product

• product improvement

• Product modification

• All of the above

Eliminating possibilities until one or two ideas are selected for development.

• generating ideas

• screening ideas

• introducing the product

• evaluating customer acceptance

Which of the following phase involve selecting the best idea and dropping poor ideas?

• Idea generation

• Business Analysis

• Market strategy development

• Idea screening

A company has absorptive capabilities if it....

• recognizes the signal from external environment

• identifies and assimilates new information

• transfers new information into innovation

• develops new businesses

Loss aversion is the idea that...

• We tend to make investments that lose money

• We tend to avoid telling people about our losses

• If you lose money, you shouldn’t be in charge of making financial decisions

• We tend to feel the effect of losses more than the effect of similar gains

Which of the following loss aversion strategies best describes a streaming service that allows you to watch its content free for 30 days?

• Coupons

• Scarcity and urgency

• Buy now, and get free shipping

• Free trials and samples

the phenomenon where a real or potential loss is perceived by individuals as psychologically or emotionally more severe than an equivalent gain

• Mental Accounting

• Bandwagon Effect

• Loss Aversion

• Confirmation Bias

Ally signs up for a Netflix trial. Because she “owns” a full account, she places high value on it and signs up. This is

• Loss Aversion

• Herd Mentality

• Overprecision

• The Endowment Effect

The Endowment Effect is …

• Doing something because you see all of your friends doing it

• Valuing something more because you own it

• Returning to a baseline level of happiness after a major event

• Continuing something because you have contributed resources to it