Question 1

A clothing manufacturer produces some basic models on a large scale. The customers can then choose print, color, embellishments, and size and place a specific order. Which of the following is being exemplified in this case?

Accepted Answer

A)  Reconﬁguration of the value chain to eliminate activities
B)  Creation of a low-end disruptive innovation
C)  Reconfiguration of the value chain to allow for mass customization
D)  Creation of a high-end disruptive innovationE) All of the above
F) B) and D)

Question 2

Strategies that draw on more radical innovations ________.

Accepted Answer

A)  build products on a firm's established knowledge base
B)  employ a fundamentally similar business model as a firm's rivals
C)  often use new technologies to create, deliver, and capture value
D)  create minor improvements to the product or service a firm offersE) A) and B)
F) A) and C)

Question 3

Which of the following statements refers to incremental innovation?

Accepted Answer

A)  It is a pricing strategy that a company uses to get paid for the value it delivers through its business model.
B)  It can be described as building on a firm's established knowledge base to create minor improvements to the product or service a firm offers.
C)  It can be described as innovation that draws on a different knowledge base, technologies, or methods to deliver value in a truly unique way.
D)  It can be described as building on a competing firm's established knowledge base to steadily improve a firm's own product or service.E) All of the above
F) None of the above

Question 4

Which of the following statements is true of a firm that creates a radical innovation?

Accepted Answer

A)  It focuses on the established knowledge base of a firm to deliver value.
B)  It relies on existing technologies and resources to create a new product.
C)  It employs a fundamentally different business model than its rivals.
D)  It aims to sustain its current product offering and revenues.E) A) and D)
F) A) and C)

Question 5

A cell phone manufacturing company gives away a free case with a purchase of any product higher than $50. Which of the following is being exemplified in this case?

Accepted Answer

A)  A blue ocean strategy
B)  A cross-sell strategy
C)  A third-party pay strategy
D)  A bundling strategyE) All of the above
F) A) and B)

Question 6

A radical innovative strategy in which companies in the same industry find the innovation so destructive that they can no longer do business as usual is called a(n)___.

Accepted Answer

disruptive...

Question 7

Stars Corp. decides to eliminate activities associated with collecting and storing the products by directly distributing the finished goods to its customers. This enabled Stars to reduce the total cost. Which of the following is being exemplified in this case?

Accepted Answer

A)  Disintermediation
B)  Low-end disruptive innovations
C)  Standardization
D)  High-end radical innovationsE) None of the above
F) A) and B)

Question 8

Crimson Inc. initially introduced a new gadget to the niche market. Eventually, other organizations provided the same product at a lower price. Hence, Crimson had to reduce the price of the gadget to the market price. This is an example of a ___________.

Accepted Answer

A)  disintermediation strategy
B)  low-end disruptive innovation
C)  differentiation strategy
D)  high-end disruptive innovationE) A) and B)
F) A) and C)

Question 9

A telecommunications service provider, Chrome Inc., creates a new application for its users. The application allows users to make free calls through the Internet. While this increased the number of paid subscribers of Chrome, its competitors who levied a fee for their telecommunication services lost their customers. This is an example of a ___________.

Accepted Answer

A)  supporting innovation
B)  complementary innovation
C)  disruptive innovation
D)  decremented innovationE) C) and D)
F) B) and D)

Question 10

Prints Inc., offers visiting cards, brochures, business cards, and personalized greeting cards. It allows customers to choose from a set of modules and create their own designs. Which of the following is being exemplified in this case?

Accepted Answer

A)  Reconﬁguration of the value chain to eliminate activities
B)  Creation of a low-end disruptive innovation
C)  Reconfiguration of the value chain to allow for mass customization
D)  Creation of a high-end disruptive innovationE) A) and C)
F) All of the above

Question 11

Identify a true statement about bundling strategy.

Accepted Answer

A)  It works well when the product requires ongoing maintenance.
B)  It typically uses price skimming as a strategy to increase profits.
C)  It encourages sales by providing products at a discount.
D)  It requires bundled products to be related to free products.E) A) and B)
F) All of the above

Question 12

A salon that specializes in haircuts comes up with a new service that sets it apart from those of its rivals. Clients are requested to send in their photographs; the stylists then create a set of digital images with various looks. Once the client chooses a desired look, a stylist goes to the client's home to deliver the service. The strategy of creating digital images, which requires a unique set of resources and skills, is an example of a(n) ___________.

Accepted Answer

A)  altered innovation
B)  incremental innovation
C)  radical innovation
D)  progressive innovationE) All of the above
F) A) and C)

Question 13

Which of the following statements is true of a high-end disruptive innovation?

Accepted Answer

A)  It disrupts an existing market by displacing a high-end technology with a low-end tool.
B)  It relies on discounted prices to increase the sale of high-end services.
C)  It uses the price skimming strategy to gain a foothold in the market.
D)  It creates new products that offer superior performance on some existing product features.E) C) and D)
F) B) and C)

Question 14

Groups of people who share similar needs and thus are likely to desire the same features in a product are called ___.

Accepted Answer

The answer of Groups of people who share similar needs...

Question 15

Inks Corp. is a manufacturer of pens. It creates a new product called HYPERLINK "http://en.wikipedia.org/wiki/Quink" \o "Quink" Quink, a quick-drying ink pen that does not require the use of blotting paper. It creates this product by building on its established knowledge of the properties of ink and the mechanisms of a pen. Which of the following innovations is being exemplified in this case?

Accepted Answer

A)  A revolutionary innovation
B)  An incremental innovation
C)  A radical innovation
D)  A subversive innovationE) B) and D)
F) None of the above

Question 16

Radical innovation strategies are sometimes referred to as disruptive innovation because ________.

Accepted Answer

A)  they disrupt the normal functioning of the activities in the industry value chain
B)  they disrupt the production process, thus reducing the production capability of the firm
C)  companies in the same industry can easily imitate this innovation
D)  rival firms find them so disruptive that they can no longer do business as usualE) A) and D)
F) B) and C)

Question 17

Flytech Inc. is an online store where people and businesses buy and sell a broad variety of goods and services. Various brands pay Flytech to advertise and sell their products online. Which of the following is being exemplified in this case?

Accepted Answer

A)  A blue ocean strategy
B)  A cross-sell strategy
C)  A third-party pay strategy
D)  A bundling strategyE) All of the above
F) A) and D)

Question 18

J.J. Inc., a software company, was the first to create a customized messenger application. The subscribers can choose the features they wish to install. The value offered by J.J. is different from its competitors in the market. Which of the following is being exemplified in this case?

Accepted Answer

A)  A blue ocean strategy
B)  A low-end disruptive innovation
C)  A standardization strategy
D)  A high-end disruptive innovationE) All of the above
F) B) and D)

Question 19

Which of the following is a characteristic of products created through top-down disruptive innovation?

Accepted Answer

A)  They move upmarket as they improve their technology and processes.
B)  They are of poorer quality than the existing products in the market.
C)  They are priced significantly lower than other similar products in the market.
D)  They are initially purchased by the most discriminating and least price-sensitive buyers.E) A) and B)
F) All of the above

Question 20

Gem Inc. a clothing manufacturer, creates a new strategy to increase its customer base. Maya, a marketing student, observes that Gem engages in disintermediation, while Nate, her friend, believes that this observation is incorrect. Which of the following statements is likely to support Maya's observation?

Accepted Answer

A)  Gem is likely to offer coupons to regular customers and increase brand loyalty.
B)  Gem is likely to create disruptive innovations to eliminate competition.
C)  Gem is likely to eliminate middlemen and directly deliver products to customers.
D)  Gem is likely to misrepresent facts in its promotions to increase sales.E) A) and C)
F) B) and C)

Exam 10: Innovative Strategies That Change the Nature of Competition

Flytech Inc. is an online store where people and businesses buy and sell a broad variety of goods and services. Various brands pay Flytech to advertise and sell their products online. Which of the following is being exemplified in this case?

Correct Answer
verified

Which of the following statements is true of a high-end disruptive innovation?

Correct Answer
verified

Crimson Inc. initially introduced a new gadget to the niche market. Eventually, other organizations provided the same product at a lower price. Hence, Crimson had to reduce the price of the gadget to the market price. This is an example of a ___________.

Correct Answer
verified

Radical innovation strategies are sometimes referred to as disruptive innovation because ________.

Correct Answer
verified

A clothing manufacturer produces some basic models on a large scale. The customers can then choose print, color, embellishments, and size and place a specific order. Which of the following is being exemplified in this case?

Correct Answer
verified

Correct Answer
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Correct Answer
verified

A cell phone manufacturing company gives away a free case with a purchase of any product higher than $50. Which of the following is being exemplified in this case?

Correct Answer
verified

Correct Answer
verified

Which of the following statements refers to incremental innovation?

Correct Answer
verified

Identify a true statement about bundling strategy.

Correct Answer
verified

Stars Corp. decides to eliminate activities associated with collecting and storing the products by directly distributing the finished goods to its customers. This enabled Stars to reduce the total cost. Which of the following is being exemplified in this case?

Correct Answer
verified

Correct Answer
verified

A radical innovative strategy in which companies in the same industry find the innovation so destructive that they can no longer do business as usual is called a(n)___.

Correct Answer
verified
disruptive...
View Answer

J.J. Inc., a software company, was the first to create a customized messenger application. The subscribers can choose the features they wish to install. The value offered by J.J. is different from its competitors in the market. Which of the following is being exemplified in this case?

Correct Answer
verified

Strategies that draw on more radical innovations ________.

Correct Answer
verified

Which of the following statements is true of a firm that creates a radical innovation?

Correct Answer
verified

Which of the following is a characteristic of products created through top-down disruptive innovation?

Correct Answer
verified

Prints Inc., offers visiting cards, brochures, business cards, and personalized greeting cards. It allows customers to choose from a set of modules and create their own designs. Which of the following is being exemplified in this case?

Correct Answer
verified

Groups of people who share similar needs and thus are likely to desire the same features in a product are called ___.

Correct Answer
verified

Exam 10: Innovative Strategies That Change the Nature of Competition

Flytech Inc. is an online store where people and businesses buy and sell a broad variety of goods and services. Various brands pay Flytech to advertise and sell their products online. Which of the following is being exemplified in this case?

Correct AnswerverifiedShow Answer

Which of the following statements is true of a high-end disruptive innovation?

Correct AnswerverifiedShow Answer

Crimson Inc. initially introduced a new gadget to the niche market. Eventually, other organizations provided the same product at a lower price. Hence, Crimson had to reduce the price of the gadget to the market price. This is an example of a ___________.

Correct AnswerverifiedShow Answer

Radical innovation strategies are sometimes referred to as disruptive innovation because ________.

Correct AnswerverifiedShow Answer

A clothing manufacturer produces some basic models on a large scale. The customers can then choose print, color, embellishments, and size and place a specific order. Which of the following is being exemplified in this case?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A cell phone manufacturing company gives away a free case with a purchase of any product higher than $50. Which of the following is being exemplified in this case?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements refers to incremental innovation?

Correct AnswerverifiedShow Answer

Identify a true statement about bundling strategy.

Correct AnswerverifiedShow Answer

Stars Corp. decides to eliminate activities associated with collecting and storing the products by directly distributing the finished goods to its customers. This enabled Stars to reduce the total cost. Which of the following is being exemplified in this case?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A radical innovative strategy in which companies in the same industry find the innovation so destructive that they can no longer do business as usual is called a(n)___.

Correct Answerverifieddisruptive...View AnswerShow Answer

J.J. Inc., a software company, was the first to create a customized messenger application. The subscribers can choose the features they wish to install. The value offered by J.J. is different from its competitors in the market. Which of the following is being exemplified in this case?

Correct AnswerverifiedShow Answer

Strategies that draw on more radical innovations ________.

Correct AnswerverifiedShow Answer

Which of the following statements is true of a firm that creates a radical innovation?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of products created through top-down disruptive innovation?

Correct AnswerverifiedShow Answer

Prints Inc., offers visiting cards, brochures, business cards, and personalized greeting cards. It allows customers to choose from a set of modules and create their own designs. Which of the following is being exemplified in this case?

Correct AnswerverifiedShow Answer

Groups of people who share similar needs and thus are likely to desire the same features in a product are called ___.

Correct AnswerverifiedShow Answer

Correct Answer
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disruptive...
View Answer

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