Innovation and Adoption Strategies Quiz
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Innovation and Adoption Strategies Quiz

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Questions and Answers

What syndrome did the firm experience when they decided to follow a 'make strategy' for acquiring new technology?

  • Make it or break it syndrome
  • Buy-or-make dilemma
  • Not-Invented-Here (NIH) Syndrome (correct)
  • Innovation fatigue

    • Pursuing a Customer Intimate strategy results in lower customer research costs.

    False

    Who studied the macro-processes of the diffusion of innovations?

    Everett Rogers

    For Fast Followers, their customers are ______________________.

    <p>early adopters and early majority</p> Signup and view all the answers

    Which of the following is NOT one of the five common mistakes firms make regarding new products?

    <p>Not remembering their pioneering status</p> Signup and view all the answers

    The compromise effect is more likely to affect mature products than new products.

    <p>False</p> Signup and view all the answers

    What was one critical consumer personality trait for the adoption of e-commerce in the 1990s?

    <p>Need for touch</p> Signup and view all the answers

    What theory is exemplified by working closely with avid kayakers who modify their kayaks?

    <p>Lead user theory</p> Signup and view all the answers

    The compromise effect is largely due to individuals' intuition of ____________________.

    <p>a normal distribution</p> Signup and view all the answers

    Which innovation strategy type is NOT mentioned?

    <p>Flexible Sprinter</p> Signup and view all the answers

    Research by Everett Rogers shows that the likelihood of being an innovator is correlated with lower social participation.

    <p>False</p> Signup and view all the answers

    Match the following concepts with their descriptions:

    <p>Bass Model = Success of products is not immediately visible Fast Followers = Adopt innovations after early adopters Customer Intimate strategy = Focuses on close relationships with customers Comprise Effect = Preference for middle options in choices</p> Signup and view all the answers

    What is the term for building a complex product from smaller independently created subsystems?

    <p>Modularity</p> Signup and view all the answers

    Clay Christensen is the author of the best-selling book ____________.

    <p>The Innovator's Dilemma</p> Signup and view all the answers

    The increase in a new product's value due to the adoption of others is called:

    <p>Direct network externality</p> Signup and view all the answers

    What are challenges faced when moving from innovators to early adopters?

    <p>Finding a compelling application</p> Signup and view all the answers

    Innovation theater refers to the process of incorporating consumer feedback into final product design.

    <p>False</p> Signup and view all the answers

    What is the broader exercise involved in GE's 'work-out sessions' aimed at busting bureaucratic assumptions?

    <p>Unlearning</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Lead user theory = Working with advanced consumers to innovate Network externality = Increased value with user adoption Modularity = Building systems from independent components Innovation theater = Gathering feedback without making changes</p> Signup and view all the answers

    A large consumer electronics firm spending 18 months on a new product is facing ____________ when they can't implement feedback into design.

    <p>Innovation theater</p> Signup and view all the answers

    What does MVP stand for in the concept of Fast Failure?

    <p>Minimum viable product</p> Signup and view all the answers

    Price is one of the five innovation attributes explaining the variance in the rate of adoption.

    <p>False</p> Signup and view all the answers

    Who developed the lead user theory at MIT?

    <p>Eric Von Hippel</p> Signup and view all the answers

    In the Bass Model, the pattern of diffusion is largely determined by the ratio of ___________ (q) and ___________ (p).

    <p>imitators, innovators</p> Signup and view all the answers

    Which company introduced the App Store on July 10, 2008?

    <p>Apple</p> Signup and view all the answers

    Match the following items related to Pioneer Perils:

    <p>Shifts in consumer tastes = A challenge for pioneers Innovator's dilemma = Risk of failing to adapt Harder to commit resources first = Initial resource allocation issue Failure to adapt to competition = Long-term strategy vulnerability</p> Signup and view all the answers

    Happiness in the workplace has no significant downsides for employees.

    <p>False</p> Signup and view all the answers

    What is the hardest type of value proposition to develop but the most effective one in practice?

    <p>Resonating focus</p> Signup and view all the answers

    What is the primary focus of product leaders in delivering their value proposition?

    <p>Commercialization</p> Signup and view all the answers

    Medtronic's Innovation Lab was an example of a ________ innovation process.

    <p>formal</p> Signup and view all the answers

    The extent to which a firm monitors, learns about, and internally shares customer and competitor trends in the market is termed _________________________.

    <p>Marketing orientation</p> Signup and view all the answers

    Top leadership should be strict about enforcing consequences for failures to foster a culture of creativity.

    <p>False</p> Signup and view all the answers

    What is necessary for a telehealth tech firm to effectively recruit pediatric nurses?

    <p>Being first to market with their application</p> Signup and view all the answers

    What is the critical transition emphasized in Moore's book, Crossing the Chasm?

    <p>Early adopters to early majority</p> Signup and view all the answers

    Technology mapping is a way to capture the four basic steps in managing technology resources.

    <p>True</p> Signup and view all the answers

    What caused the shift in perception of instant coffee among female shoppers in the 1970s?

    <p>The product became more compatible with women's self-perceptions as they increasingly worked outside the home.</p> Signup and view all the answers

    Facilities intended to increase creativity by being physically separate from regular business practices are called ___________________.

    <p>Skunk works</p> Signup and view all the answers

    Match the following concepts with their descriptions:

    <p>Marketing Orientation = Focus on understanding customer and competitor trends Crossing the Chasm = Transition from early adopters to early majority Skunk Works = Creative facilities away from normal operations Technology Mapping = Managing technology resources effectively</p> Signup and view all the answers

    Operationally excellent firms should understand late majority hurdles to adoption.

    <p>False</p> Signup and view all the answers

    Which of the following was seen as an unattractive product by female shoppers in the United States prior to the 1970s?

    <p>Instant coffee</p> Signup and view all the answers

    Study Notes

    NIH Syndrome

    • Firms may experience "NIH Syndrome" when they are reluctant to adopt external technology due to a preference for in-house development.
    • This preference can lead to failure if the in-house development proves difficult.

    Customer Intimacy Strategy

    • A customer-intimate strategy does not automatically reduce customer research costs.

    Innovation Strategy Types

    • "Flexible Sprinter" is not a recognized innovation strategy type.

    Diffusion of Innovations

    • Everett Rogers studied the macro-processes of innovation diffusion by analyzing how agricultural innovations were adopted by different farming communities.

    Value Proposition Mistakes

    • A common mistake in determining a value proposition is neglecting to remember to act like a pioneer even when not one.

    Fast Followers

    • Fast followers target early adopters and the early majority with superior products delivered through refinement.

    Consumer Adoption and Personality Traits

    • The critical trait for consumer adoption of e-commerce in the 1990s was the need for touch.

    Compromise Effect

    • The compromise effect, where people favor middle options, arises due to the intuition of a normal distribution.

    Compromise Effect and Product Maturity

    • The compromise effect is more likely to influence the adoption of new products and services than mature ones.

    Bass Model

    • The Bass Model emphasizes that the success of innovative products is not immediately clear.
    • Companies should not prematurely pull the plug on products that don't show immediate high sales performance.

    Fast Failure

    • In the context of Fast Failure, MVP stands for Minimum Viable Product.

    Innovation Attributes and Adoption Rate

    • Price is not one of the five innovation attributes that explain a significant portion of the variance in adoption rate.

    Product Leaders

    • Product leaders focus on commercialization to deliver on their value proposition.

    Product Differentiation (PD) Curve

    • The Product Differentiation (PD) curve is a valuable tool for versioning.

    Lead User Theory

    • Eric Von Hippel developed the lead user theory at MIT.

    Happiness and Risk Tolerance

    • While happiness generally boosts creativity, it can also decrease risk tolerance.

    Pioneer Perils

    • Pioneer perils include:
      • Shifts in consumer tastes
      • Innovator's dilemma
      • Difficulty in committing resources first
      • Inability to adapt to competition

    Indirect Network Externalities

    • Apple's App Store is an example of indirect network externalities.
    • The popularity of the iPhone increased the value to consumers through third-party app development, outside of Apple's direct actions.

    Bass Model Variables

    • In the Bass Model, the pattern of diffusion is determined by the ratio of imitators (q) and innovators (p) within a market of size (M).

    Resonating Focus

    • A resonating focus value proposition, while challenging to develop, is the most effective in practice.

    Formal vs. Emergent Innovation Processes

    • Medtronics' alternating annual schedule of strategic vision, with equal opportunities for employee proposals, is an example of a formal innovation process.

    Lead User Theory and Innovation Development

    • The collaboration between plastics manufacturers and avid kayakers in developing early plastic kayaks exemplifies lead user theory in innovation development.

    Innovators and Social Participation

    • Everett Rogers' research indicates a positive correlation between social participation and the likelihood of being an innovator.

    Modularity

    • Modularity involves breaking down complex products into smaller, independently created subsystems that can be assembled or bundled as needed to reduce consumer and producer risk.

    "The Innovator's Dilemma"

    • Clay Christensen, a prominent innovation scholar, authored "The Innovator's Dilemma."

    Direct Network Externality

    • The increase in value of early telephones due to a greater number of potential callers is an example of a direct network externality.

    Crossing the Chasm Challenges

    • Challenges in transitioning from innovators to early adopters, as described in "Crossing the Chasm," include:
      • Identifying a compelling application that interests non-expert consumers.
      • Prematurely engaging early adopters before product functionality is complete.
      • Providing sufficient marketing support.

    Innovation Theater

    • The scenario where a company undergoes customer feedback processes but ultimately ignores the feedback due to proximity to production launch is referred to as innovation theater.

    Unlearning

    • GE's "work-out sessions" are part of a broader exercise called unlearning, aimed at challenging assumptions and breaking bureaucratic habits.

    Marketing Orientation

    • The extent to which a firm monitors, learns about, and shares customer and competitor trends is termed its marketing orientation.

    Creativity and Consequences of Failure

    • Building a culture of creativity does not require a strict enforcement of consequences for failures. A relaxed management style can encourage experimentation and innovation.

    Producer-Based Pioneer Advantage

    • A telehealth tech firm's early-mover advantage in securing pediatric nurses due to a rapid launch is an example of a producer-based pioneer advantage.

    Crossing the Chasm

    • In "Crossing the Chasm," the critical chasm for firm success in creating profitable new products or services is the shift from early adopters to the early majority.

    Technology Mapping

    • Technology mapping is a systematic method for managing technology resources by capturing four key steps.

    Operational Excellence and Market Information

    • Operationally excellent firms prioritize information that helps differentiate the early and late majority, understand customer satisfaction with competitor products, and identify late majority adoption hurdles.

    Instant Coffee Adoption Shift

    • Instant coffee's transformation from an unattractive product to a blockbuster was driven by a change in women's self-perceptions as they entered the workforce and redefined their roles.

    Skunk Works

    • Lockheed Martin's "Skunk Works" facility, a separate creative space designed for radical innovation, inspired the naming of similar creative spaces in other companies.

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    Description

    Test your knowledge on various strategies related to innovation and customer intimacy. This quiz covers concepts like NIH Syndrome, innovation diffusion, and common value proposition mistakes. Enhance your understanding of how firms adopt new technologies and the significance of different consumer traits.

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