Exam 1 PDF

1. A firm discovers a new technology they need to acquire to stay competitive with market changes. The new technology is not something they have produced before and is high risk, but they are reluctant to use something that was not developed in house. So they decide to follow a "make stra...

1. A firm discovers a new technology they need to acquire to stay competitive with market changes. The new technology is not something they have produced before and is high risk, but they are reluctant to use something that was not developed in house. So they decide to follow a "make strategy" rather than buying or partnering to acquire the technology. Unfortunately they find their ultimate outcome is a failure as the technology proves too diBicult to make in-house. As we discussed in class, this firm has suBered from a. NIH Syndrome 2. One of the good things about pursuing a Customer Intimate strategy is lower customer research costs. a. False 3. Which of the following is NOT an innovation strategy type? a. Flexible Sprinter 4. What innovation scholar studied the macro-processes of the diBusion of innovations by looking at how agricultural innovations (like drought-resistant seeds) were adopted by diBerent farming communities? a. Everett Rogers 5. Which of the following is NOT one of the five common mistakes that firms make when determining the value proposition for a new product or service? a. Don't remember to behave like the pioneer even when they aren't 6. For Fast Followers, their customers are ______________________, the value delivered is _____________________, and the way it is delivered is ______________________ a. early adopters and early majority; superior products; refinement 7. In our discussion of consumer personality traits that can impact their adoption of innovations, we talked about how one of the critical traits for consumers' adoption of e- commerce in the 1990's was: a. Need for touch 8. People often show greater preference for middle options -- a decision heuristic known as the compromise eBect. This eBect is largely due to individuals' intuition of ____________________. a. A normal distribution 9. The compromise eBect is more likely to eBect new products and services than mature products and services. a. True 10. One of the key take-aways of the Bass Model is that the success of innovative products is clear right away and managers should not be afraid to pull the plug on products that don't show immediate high sales performance. a. False 11. One of the key take-aways of the Bass Model is that the success of innovative products is clear right away and managers should not be afraid to pull the plug on products that don't show immediate high sales performance. a. False 12. In the concept of Fast Failure, what does MVP stand for? a. Minimum viable product 13. Which of the following is not one of the five innovation attributes that, when considered together, explain 49-87% of the variance in rate of adoption? a. Price 14. Which of the following is not one of the five innovation attributes that, when considered together, explain 49-87% of the variance in rate of adoption? a. Price 15. Product leaders deliver on their value proposition by focusing on: a. Commercialization 16. A Product DiBerentiation (PD) curve is a valuable tool in what new product management activity? a. Versioning 17. Which scholar developed the lead user theory at MIT? a. Eric Von Hippel 18. Research shows that happiness has many positive impacts on employees in terms of creativity, except for one important downside in that it decreases risk tolerance. a. Happiness 19. Which of the following are the Pioneer Perils? a. Shifts in consumer tastes b. Innovator's dilemma c. Harder to commit resources first d. Failure to adapt to competition 20. Apple introduced the App Store on July 10, 2008 and went from zero apps to hundreds overnight. The more iPhones sold, the more third parties were motivated to develop apps for iPhone users. In this way, the popularity of the iPhone fueled increased value to the consumer outside of Apple's actions. This phenomenon is called: Indirect network externalities 21. In the Bass Model, the pattern of diBusion is largely determined by the ratio of _____________ (q) and ____________ (p) in a market of size (M). a. imitators, innovators 22. The hardest type of value proposition to develop, but the most eBective one in practice is: a. Resonating focus 23. Medtronics is an innovation-focused firm that for many years used a carefully developed alternating annual schedule of strategic vision from top-down and from bottom-up to determine innovative products to design. Their Innovation Lab has been devoted to allowing equal opportunities for employees to pitch new product ideas and proposals. During this time, was Medtronics an example of a formal or emergent innovation process? a. Formal 24. In the mid-1970's, plastics were first used in the production of kayaks when plastics- manufacturers, Uniroyal and Hollowform, teamed up to produce a molded plastic kayak for the booming whitewater market. The success of their radically innovative product was a  function of working closely with avid kayakers who were modifying their current kayaks to execute new and better whitewater moves. This is a classic example of ________________ in innovation development. a. Lead user theory 25. Research by Everett Rogers shows that the likelihood of being an innovator is positively correlated with more social participation. a. True 26. One way to reduce risk for both the consumer and the producer is to build a complex product from smaller subsystems that are created independently and can be assembled or bundled together as needed. This is called ____________. a. Modularity 27. Clay Christensen, a leading innovation scholar from Harvard, is the author of what best- selling book? a. The Innovator's Dilemma 28. The value of early telephones increased as more people adopted them because there were more people for telephone owners to call. This increase in a new product's value due to the adoption of others is called: a. Direct network externality 29. What are the challenges in moving from innovators to early adopters, as described in Crossing the Chasm? a. Finding a compelling application that will interest consumers who aren't experts. b. Going to the early adopters too soon before the product is perfectly functional c. Providing high level marketing support 30. A large consumer electronics firm spends 18 months developing a new television and is close to beginning production. The marketing department is asked to get consumer feedback in a series of focus groups run by a high-profile consulting firm and yet the marketing team knows that the product is too close to production and launch to make any changes to the design based on consumer responses. The marketing department participates in the focus groups and submits the feedback as requested, but as they expected, no changes are made to the television specs. This unfortunately common scenario is often referred to as ____________________. a. Innovation theater 31. GE was, at one time, famous for its "work-out sessions" in which executives gathered in “the pit,” an amphitheater-style classroom where people had to answer questions and defend opinions in a way that aimed to bust the assumptions that fueled bureaucracy and habit. This type of corporate activity is part of a larger broader exercise called ________________. a. Unlearning 32. The extent to which a firm monitors, learns about, and internally shares customer and competitor trends in the market is termed _________________________. a. Marketing orientation 33. In order to build a culture of creativity, it is important for top leadership to be strict about enforcing consequences for failures, so employees don't take advantage of loose management styles. a. False 34. A telehealth tech firm develops a new app that will require part-time staBing from large numbers of pediatric nurses, who are in relatively short supply. The firm sprints to be first to market so that they will have access to recruit the nurses and sign them to long-term contracts. Because of this, later competitors struggle to fully staB their application. This is an example of: a. A producer-based source of pioneer's advantage 35. The key message of GeoBrey Moore's book, Crossing the Chasm, is that the most critical chasm for firms to successfully cross if they hope to create a profitable new product or service is the shift from: a. Early adopters to early majority 36. Technology mapping is: a. A way to capture the four basic steps in managing technology resources 37. For firms that strive to be operationally excellent, the information that is critical to collect is to study consumers to diBerentiate early and late majority, to study customer satisfaction with competitor products (defections/returns), and to understand late majority “hurdles” to adopt. a. False 38. From the early to mid 1900's, instant coBee was seen as an unattractive product by female shoppers in the United States. This shifted suddenly in the 1970's when instant coBee became a blockbuster product. What happened to cause this radical shift? a. The product became more compatible with women's self-perceptions as they increasingly worked outside the home and were less likely to judge themselves as homemakers. 39. During World War II, Lockheed Martin wanted to develop radically new aircraft and so set up a facility far from their headquarters. It was located in a tent and was near the Burbank Airport. The name of this facility has been used for similar spaces where companies try to increase creativity by creating physical space from "business as usual." These facilities are called ___________________. a. Skunk works 40. People have a strong inner motivation to develop theories about how the world works and life seems more predictable when evidence proves these theories to be correct. This, unfortunately, leads to a prevalent bias called ______________________ in which people are more likely to notice evidence that supports their theory and interpret ambiguous evidence in a way that supports their theory. a. Confirmatory bias.