Jumpstart Inc. ,an automobile manufacturer,are better-known as the pioneers in the production of battery-operated cars.These cars were a huge success in the initial years of their launch,and Jumpstart manufactured them in huge volumes.However,over a period of time,consumer needs evolved and consumers sought more sophisticated technology-driven cars,leading to a considerable dip in the sales of these cars.This scenario illustrates the _____ risk that was not considered during the idea screening phase.
A)functional
B)hierarchical
C)market
D)internal

Question

Quizplus · Accepted Answer

The scenario highlights the market risk that was overlooked during the idea screening phase. Jumpstart Inc. failed to anticipate the changing demands of the consumers and did not modify their product offerings accordingly, leading to a drop in sales. This can be considered a market risk as it arises due to external factors such as changes in consumer preferences, competition, etc.