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WorksheetsSession 2
Total questions: 24
Worksheet time: 23mins
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
Which of the following best describes status quo bias?
A tendency to favor the current state or existing conditions over considering alternatives.
A preference for traditions and customs, regardless of their effectiveness.
A desire to always try new things without sticking to one's habits.
A tendency to prefer change and new experiences over familiar routines.
What is Open Innovation?
Venturing into a new market area.
Sourcing the ideas from outside the organization.
Opening up a new function in organization.
Limiting the boundary of organization.
In the context of a business model, what does the term "value proposition” refer to?
The monetary worth of a company's products or services
The unique bundle of benefits that a company offers to its customers
The cost of production incurred by the company
The market share captured by the company's products or services
What is the difference between 'Invention' and 'Innovation'?
Invention is about creating new ideas, while Innovation is about commercial and social benefits
Invention is about improving existing things, while Innovation is about creating new things
Invention is about using new technology, while Innovation is about creating new products
Invention is about selling products, while Innovation is about improving existing products
Which innovation theory could describe Netflix's shift from mailing movie discs to streaming videos over the internet?
Architectural Innovation
Radical Innovation
Incremental Innovation
Disruptive Innovation
State the difference between invention, discovery and innovation:
the discovery is made at the applied level, the innovation based on it is created at the fundamental level;
a discovery or invention can be made collectively, and innovations are developed and implemented by a scientist, a lone inventor;
a discovery or invention is carried out exclusively for the purpose of obtaining profit, while innovations are introduced for the purpose of obtaining new knowledge;
discovery or invention can be accidental, innovations do not happen by chance.
Innovative management is:
a system of principles and methods for the development and implementation of management decisions related to the implementation of various aspects of the enterprise's investment activity;
application of knowledge, skills, tools and methods to project operations to meet project requirements;
a set of methods and forms of management of the innovation process, as well as management of organizational structures engaged in this activity and their personnel;
a set of principles, methods and means of enterprise management with the aim of increasing production efficiency and increasing profits.
When Apple introduces the new iPhone in 2007, they enjoyed this advantage:
competitive advantage
first-mover advantage
customer relationship advantage
business process advantage
When a company develops unique differences in its products or services with the intent to influence demand it is called ________________ ___________
service upgrading
product enhancement
service alternatives
product differentiation
What does "disruptive innovation" describe?
Large companies innovating within their markets
Smaller companies challenging established businesses
Governments regulating new industries
Startups that fail in the market
Disruptive innovations often start as products that are perceived as...?
Superior
Inferior
Expensive
Mainstream
What is a key challenge for established companies facing disruption?
Too much market demand
Resistance to change
Too few resources
Excessive innovation
How have disruptors changed business revenue models?
By sticking to traditional one-time purchases
By introducing subscription models
By only focusing on physical stores
By eliminating digital offerings
What is an example of a disruptive business model?
Renting out properties with no fees
Offering basic services for free and charging for premium services
Selling only in physical stores
Restricting access to services
