Question 1

In the _________, individuals develop an attitude toward the proposition and reach a decision about whether the innovation will meet their needs. If this is positive they will experiment with the innovation.

Accepted Answer

In the decision stage, individuals evaluate the innovation and decide whether it will meet their needs, leading to experimentation if the decision is positive.

Question 2

This is the pathway a product assumes over its lifetime. There are said to be five main stages: development, introduction, growth, maturity and decline.

Accepted Answer

Product lifecycle refers to the stages a product goes through over its lifetime, including development, introduction, growth, maturity, and decline.

Question 3

MySQL, the world's leading open-source database software producer uses this approach. By making the source code of the software freely available to everybody, the software is available to everyone to use and/or modify. This is a good example of:

Accepted Answer

Making the source code freely available for everyone to use and/or modify is an example of radical service innovation, as it fundamentally changes the way the software is distributed and developed, allowing for open collaboration and modification.

Question 4

These are groups of brands that are closely related in terms of their functions and the benefits they provide:

Accepted Answer

Product lines consist of various products that are closely related either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

Question 5

Convenience products are non-durable and are bought because the consumer does not want to put very much effort, if any, into the buying decision. Which behaviour closely corresponds to convenience products?

Accepted Answer

Routinized response behavior is closely associated with convenience products because consumers typically buy these items out of habit without much thought or effort.

Question 6

Möller, Rajala, and Westerlund (2008) distinguish between three service innovation strategies as:

Accepted Answer

Möller, Rajala, and Westerlund (2008) indeed identify three distinct strategies for service innovation, which include focusing on established services within competitive markets, pursuing incremental service innovation to add value, and seeking radical service innovation to create entirely new offerings.

Question 7

At stage 4 of service innovation, the highest end of innovation maturity, firms integrate the services dimension as part of their total offer. Known as servitization, this involves the provision of a bundle of goods-service solutions over the life cycle of their customers, 'from cradle to grave'.

Accepted Answer

At stage 4 of service innovation, firms indeed reach a level of innovation maturity where they integrate services as part of their total offer, a process known as servitization. This involves providing a comprehensive bundle of goods and services that cater to the entire lifecycle of their customers, effectively from 'cradle to grave', ensuring a holistic solution that combines both product and service elements.

Quiz 11: Product: New Proposition Development and Innovation