Multiple Choice Questions
This chapter is about innovation and digital technologies. From a company’s viewpoint, developing and marketing new products is a way of staying ahead of competition, of regenerating the company’s competitive position, and of revitalising the firm’s product portfolio. From a consumer’s viewpoint, new products often offer new digital solutions to problems, and can be instrumental in helping to create a better lifestyle.
1. Considering the product life cycle, which of the following is TRUE?
- Introduction comes before growth, but after maturity.
- Maturity comes before decline, but after growth.
- Growth comes before maturity, but after decline.
The correct order is introduction, growth, maturity, decline.
2. Which of the following is NOT TRUE?
- The maturity phase can be of almost any length.
- The growth phase is profitable.
- The decline phase can be reversed.
The growth phase is often unprofitable due to the support needed for the product.
3. When a product becomes part of everyday life it is said to be ______.
- culturally anchored.
- built in.
- socially essential.
The others are invented terms.
4. Which of the following is NOT one of Rogers’ criteria for new product acceptance?
- relative advantage
Profitability is an issue for the firm to address.
5. What does AIDA stand for?
- attention, interest, desire, affection
- attention, intelligence, distance, action
- attention, interest, desire, action
The others are invented.
6. What proportion of the population did Rogers classify as innovators?
Innovators are about 2.5% of the population, according to Rogers.
7. Continuous innovation is defined as ______.
- developing a new product that relates only distantly to previous products
- a new product that follows closely on from a previous product
- the development of a new product that differs radically from its predecessors
The product will have a clear relationship to the previous product.
8. One possible route around the ‘acceptance problem’ is ______.
- mass compatibility
- mass cosmopolitanism
- mass customisation
Customers are able to design the product themselves from a range of possible options.
9. The identification of real-world geographic location of an Internet-connected device (e.g. mobile phone) is more commonly known as ______.
10. People who like technology for its own sake are called ______.
The ending phile denotes lover of.
Visit https://www.youtube.com/watch?v=UGO67sWUFVE and watch this one-minute video from ‘A Quality Minute’.
Why would anyone want to start a failed products museum? More to the point, why would anyone imagine that these products would ever have sold?
Then go to https://www.youtube.com/watch?v=5dEHB9OBNlc and watch David Pogue in a TedX talk about why failures teach us success!