10 - Creativity & Innovation Flashcards
2 components of creativity
Definition and importance
Increasing creativity
2 components of innovation
Improve attitude
Reduce attitude-behaviour gap
Attitude-behaviour gap
Attitude towards product
eg: 6 on a 10 point scale for BMW cars
Reasons for gap:
- cringe community
- salesmen are cocky
- brand is inferior against competitors
How can managers reduce the attitude-behaviour gap?
Reminder
Implementation method
Behaviour consistency
Reminder (reducing attitude-behaviour gap)
Using prompts to encourage consumers to act in accordance with their attitudes. Make consumers aware that certain offerings exist
Implementation method (reducing attitude-behaviour gap)
Make a plan that guides consumers to do something
eg: make a voting plan that shows directions to voting booths, available time slots to book, etc to incentivize voting
Behaviour consistency (reducing attitude-behaviour gap)
Ensuring consumers have necessary resources and opportunities to act on their intentions, and reinforcing repetition
eg: parties giving people vote signs for their yards for every voting season
Research on implementation method
Control condition (no implementation method)
Experimental condition (implementation method)
eg: control - calling and reminding someone to vote
experimental - calling and reminding someone to vote. Asking if they will vote, when they will vote, where they will vote, etc
Customer journey maps
Shows the steps in a consumers journey, consists of pain points and pleasure points
The 3 circles that create successful new products
Customer need
Technology
Cost
Customer need
Unmet, and often hidden
eg: blackberry to iphone, customers had unmet needs of larger buttons
Technology
Ready, works well
Can be split into firm-level technology and industry-level technology
eg: firm-level tech can be touchscreens on iphones, industry-level tech can be wireless networks
Cost
Low enough for consumers
Can be split into firm-level costs and industry-level costs
eg: firm-level costs can be buying a phone, industry-level costs can be streaming costs
Why diverse teams are beneficial
Diverse teams generate more diverse ideas due to varying experiences and knowledge
Two stages of brainstorming within teams
Divergent Thinking
Convergent Thinking
Divergent thinking
Free association, no constraints
Leads to creative new product ideas, advertisements, etc
Convergent thinking
Constraints included (time, money, tech, etc)
Puts ideas generated from divergent thinking against constraints
What inhibits divergent thinking
Education systems
Groupthink in teams
What facilitates divergent thinking
Playful environment
Risky projects
Diverse teams
Groupthink
Tendency for members of a cohesive group to seek consensus that they fail to do a realistic judgement of possibly better alternatives
Radical innovations
Significant changes in offerings, major shifts in features, functionality, and design
eg: when the iPhone was first introduced
Incremental innovations
Smaller, gradual improvements to existing offerings. Focused on refining existing features, increasing efficiency, or enhancing user experience
eg: iPhone 12 -> iPhone 13
Forecasting new product sales for incremental innovations
Take sales data of previous products to estimate forecasts
Forecasting new product sales for radical innovations
Size of potential market * likely market share
Purchase intentions
Convert target market into likely market share through surveys (ask their likeliness to buy)
eg: 45/100 respondents will buy = 45% likely market share
Forecasted sales after launch for radical innovations
Product life cycle (PLC) have trends and we can forecast trends based off of previous radical innovations
New product development process
Idea generation (worth considering?)
Idea screening (Product aligned with company objectives?)
Concept development and testing (would consumers try it?)
Marketing strategy development (is there a cost-effective marketing strategy?)
Business analysis (will the product meet profit goals?)
Product development
Market testing (has product met expectations?)
Commercialization
Concept development
Specify attributes of new product (relative advantage, innovativeness, price, switching costs, trialability, complexity)
Create a prototype
Concept testing
Ask target consumers to see/use product
Measure response of target consumers
Targeting segments of the product life cycle (PLC)
Advertise to reach the segment at the right time of the PLC
Innovators
Early adopters
Early majority
Late majority
Laggards
