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?

  1. Introduction comes before growth, but after maturity.
  2. Maturity comes before decline, but after growth.
  3. Growth comes before maturity, but after decline.

Answer: B

The correct order is introduction, growth, maturity, decline.

2. Which of the following is NOT TRUE?

  1. The maturity phase can be of almost any length.
  2. The growth phase is profitable.
  3. The decline phase can be reversed.

Answer: B

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 ______.

  1. culturally anchored.
  2. built in.
  3. socially essential.

Answer: A

The others are invented terms.

4. Which of the following is NOT one of Rogers’ criteria for new product acceptance?

  1. relative advantage
  2. compatibility
  3. profitability

Answer: C

Profitability is an issue for the firm to address.

5. What does AIDA stand for?

  1. attention, interest, desire, affection
  2. attention, intelligence, distance, action
  3. attention, interest, desire, action

Answer: C

The others are invented.

6. What proportion of the population did Rogers classify as innovators?

  1. 2.5%
  2. 16.7%
  3. 10.2%

Answer: A

Innovators are about 2.5% of the population, according to Rogers.

7. Continuous innovation is defined as ______.

  1. developing a new product that relates only distantly to previous products
  2. a new product that follows closely on from a previous product
  3. the development of a new product that differs radically from its predecessors

Answer: B

The product will have a clear relationship to the previous product.

8. One possible route around the ‘acceptance problem’ is ______.

  1. mass compatibility
  2. mass cosmopolitanism
  3. mass customisation

Answer: C

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 ______.

  1. geopositioning
  2. geolocation
  3. geomapping    

Answer: B

10. People who like technology for its own sake are called ______.

  1. technophiles
  2. technophobes
  3. technocrats

Answer: A

The ending phile denotes lover of.

Web exercise

Visit 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 and watch David Pogue in a TedX talk about why failures teach us success!