10 - Creativity & Innovation

Question 1

2 components of creativity

Answer 1

Definition and importance
Increasing creativity

Question 2

2 components of innovation

Answer 2

Improve attitude
Reduce attitude-behaviour gap

Question 3

Attitude-behaviour gap

Answer 3

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

Question 4

How can managers reduce the attitude-behaviour gap?

Answer 4

Reminder
Implementation method
Behaviour consistency

Question 5

Reminder (reducing attitude-behaviour gap)

Answer 5

Using prompts to encourage consumers to act in accordance with their attitudes. Make consumers aware that certain offerings exist

Question 6

Implementation method (reducing attitude-behaviour gap)

Answer 6

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

Question 7

Behaviour consistency (reducing attitude-behaviour gap)

Answer 7

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

Question 8

Research on implementation method

Answer 8

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

Question 9

Customer journey maps

Answer 9

Shows the steps in a consumers journey, consists of pain points and pleasure points

Question 10

The 3 circles that create successful new products

Answer 10

Customer need
Technology
Cost

Question 11

Customer need

Answer 11

Unmet, and often hidden
eg: blackberry to iphone, customers had unmet needs of larger buttons

Question 12

Technology

Answer 12

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

Question 13

Cost

Answer 13

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

Question 14

Why diverse teams are beneficial

Answer 14

Diverse teams generate more diverse ideas due to varying experiences and knowledge

Question 15

Two stages of brainstorming within teams

Answer 15

Divergent Thinking
Convergent Thinking

Question 16

Divergent thinking

Answer 16

Free association, no constraints
Leads to creative new product ideas, advertisements, etc

Question 17

Convergent thinking

Answer 17

Constraints included (time, money, tech, etc)
Puts ideas generated from divergent thinking against constraints

Question 18

What inhibits divergent thinking

Answer 18

Education systems
Groupthink in teams

Question 19

What facilitates divergent thinking

Answer 19

Playful environment
Risky projects
Diverse teams

Question 20

Groupthink

Answer 20

Tendency for members of a cohesive group to seek consensus that they fail to do a realistic judgement of possibly better alternatives

Question 21

Radical innovations

Answer 21

Significant changes in offerings, major shifts in features, functionality, and design
eg: when the iPhone was first introduced

Question 22

Incremental innovations

Answer 22

Smaller, gradual improvements to existing offerings. Focused on refining existing features, increasing efficiency, or enhancing user experience
eg: iPhone 12 -> iPhone 13

Question 23

Forecasting new product sales for incremental innovations

Answer 23

Take sales data of previous products to estimate forecasts

Question 24

Forecasting new product sales for radical innovations

Answer 24

Size of potential market * likely market share

Question 25

Purchase intentions

Answer 25

Convert target market into likely market share through surveys (ask their likeliness to buy)
eg: 45/100 respondents will buy = 45% likely market share

Question 26

Forecasted sales after launch for radical innovations

Answer 26

Product life cycle (PLC) have trends and we can forecast trends based off of previous radical innovations

Question 27

New product development process

Answer 27

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

Question 28

Concept development

Answer 28

Specify attributes of new product (relative advantage, innovativeness, price, switching costs, trialability, complexity)
Create a prototype

Question 29

Concept testing

Answer 29

Ask target consumers to see/use product
Measure response of target consumers

Question 30

Targeting segments of the product life cycle (PLC)

Answer 30

Advertise to reach the segment at the right time of the PLC
Innovators
Early adopters
Early majority
Late majority
Laggards