8 EGB - Innovation & Design - Summative Exam Flashcards
This information is for students in 8th Course
A trademark protects the unique name, logo, or symbol of a brand from being copied by others.
A) True
B) False
A) True ✅ (A trademark legally protects a brand’s identity, preventing unauthorized use.)
A target market is the group of people most likely to buy a company’s product or service.
A) True
B) False
A) True ✅ (A target market includes potential customers who share similar characteristics, needs, and preferences.)
A company can have more than one target market for the same product.
A) True
B) False
A) True ✅ (Companies often market the same product to multiple segments, adjusting their strategy for each group.)
A trademark protects:
A) A company’s inventions
B) A company’s name, logo, or slogan
C) The formula for a new drug
D) The way a product is manufactured
✅ Answer: B) A company’s name, logo, or slogan
Copyright applies to which of the following?
A) A new machine design.
B) A written book or song.
C) A company’s brand logo.
D) A product that is widely used.
✅ Answer: B) A written book or song.
Relative advantage refers to how much better an innovation is compared to previous alternatives.
A) True
B) False
A) True ✅ (A product with a strong relative advantage is more likely to be adopted quickly.)
A lone inventor is a person who:
A) Works independently to develop an invention.
B) Always creates successful products.
C) Works in large research teams.
D) Sells inventions immediately after making them.
✅ Answer: A) Works independently to develop an invention.
What is the difference between an inventor and an innovator?
A) An inventor only creates new ideas, while an innovator applies them in the market.
B) They both mean the same thing.
C) An innovator is a scientist, and an inventor is a businessman.
D) An inventor is only concerned with marketing.
✅ Answer: A) An inventor only creates new ideas, while an innovator applies them in the market.
What is the role of an entrepreneur in innovation?
A) To generate new ideas and bring them to market.
B) To work only in large corporations.
C) To focus on financial reports.
D) To prevent competition from growing.
✅ Answer: A) To generate new ideas and bring them to market.
Once a product reaches the decline stage, there is no way to make it popular again.
A) True
B) False
B) False ✅ (Some products can be repositioned, rebranded, or improved to extend their market presence.)
Which of the following best defines innovation?
A) A completely new idea or product.
B) The process of improving or modifying existing ideas.
C) A legal protection for new products.
D) The ability to copy competitors’ ideas.
✅ Answer: B) The process of improving or modifying existing ideas.
What does diffusion of innovation refer to?
A) How an innovation spreads through a population.
B) The process of manufacturing a product.
C) The suppression of new technology.
D) A technique for patenting a new invention.
✅ Answer: A) How an innovation spreads through a population.
What is the main purpose of suppressing innovation?
A) To prevent competitors from developing similar products.
B) To protect consumers from new technology.
C) To delay the adoption of an innovation for strategic reasons.
D) To avoid intellectual property issues.
✅ Answer: C) To delay the adoption of an innovation for strategic reasons.
Which of the following is an example of sustaining innovation?
A) A brand-new technology that disrupts the market.
B) Small improvements to an existing smartphone model.
C) A radical shift in manufacturing techniques.
D) The complete redesign of a car’s engine.
✅ Answer: B) Small improvements to an existing smartphone model.
Disruptive innovation is best described as:
A) A minor update to an existing product.
B) An improvement that only benefits large businesses.
C) A technology that creates a new market and disrupts existing ones.
D) A product that has been discontinued.
✅ Answer: C) A technology that creates a new market and disrupts existing ones.
Process innovation focuses on:
A) Improving the methods used to manufacture or deliver a product.
B) Creating entirely new product categories.
C) Changing a product’s external appearance.
D) Increasing the cost of a product.
✅ Answer: A) Improving the methods used to manufacture or deliver a product.
Which type of innovation involves changes in how components of a product are arranged?
A) Modular innovation
B) Architectural innovation
C) Disruptive innovation
D) Process innovation
✅ Answer: B) Architectural innovation
Modular innovation occurs when:
A) A product’s internal components are improved while its structure remains the same.
B) A completely new product is created.
C) A product is no longer produced.
D) A business enters a new industry.
✅ Answer: A) A product’s internal components are improved while its structure remains the same.
Which of the following is an example of radical innovation?
A) A slightly better camera in a new smartphone model.
B) A car manufacturer introducing self-driving technology.
C) An updated version of an existing software program.
D) A company changing its logo.
✅ Answer: B) A car manufacturer introducing self-driving technology.
Configurational innovation involves:
A) Changing how components of a product interact.
B) Only altering a product’s external features.
C) Creating an entirely new product.
D) Avoiding updates to a product.
✅ Answer: A) Changing how components of a product interact.
What is a classic design?
A) A design that remains popular and functional over time.
B) A temporary trend that fades after a short time.
C) A product that is only made for limited-edition collections.
D) A design that is always replaced by new innovations.
✅ Answer: A) A design that remains popular and functional over time.
A company can prevent obsolescence by continuously improving and updating its products.
A) True
B) False
A) True ✅ (Innovation and regular updates help keep products relevant and competitive.)
What does dominant design mean?
A) A widely accepted and standardized version of a product.
B) A product that only a small group of people use.
C) A temporary product trend.
D) A product that is discontinued quickly.
✅ Answer: A) A widely accepted and standardized version of a product.
In the product life cycle, the development stage is when a product is still being created and tested before release.
A) True
B) False
A) True ✅ (The development stage involves research, prototyping, and testing before launching the product.)
What is the main reason some products become classic designs?
A) They balance function, aesthetics, and usability over time.
B) They are produced by many different brands.
C) They are constantly changed every year.
D) They are only sold in high-end markets.
✅ Answer: A) They balance function, aesthetics, and usability over time.
What is obsolescence?
A) When a product is no longer useful or desirable.
B) When a product is improved and lasts longer.
C) When a company invests in classic designs.
D) When a product becomes dominant in the market.
✅ Answer: A) When a product is no longer useful or desirable.
Planned obsolescence is when:
A) A company designs a product to have a limited lifespan.
B) A product becomes outdated due to technological advancements.
C) A company decides to stop selling a product due to low demand.
D) A product naturally wears out over time.
✅ Answer: A) A company designs a product to have a limited lifespan.
Which of the following is an example of obsolescence?
A) A smartphone that stops receiving software updates, making it unusable.
B) A classic chair design that remains popular for decades.
C) A car model that is continuously upgraded every year.
D) A technology that is adopted by the entire industry.
✅ Answer: A) A smartphone that stops receiving software updates, making it unusable.
What is one way companies can avoid obsolescence?
A) By designing products that can be updated or repaired.
B) By making products that break down quickly.
C) By releasing new versions with no real improvements.
D) By ignoring customer feedback.
✅ Answer: A) By designing products that can be updated or repaired.
Which of the following best describes a product that has a dominant design?
A) A product that sets the standard for other designs in the same industry.
B) A product that never changes or evolves.
C) A product that is used by only a small group of people.
D) A product that constantly changes and has no standard form.
✅ Answer: A) A product that sets the standard for other designs in the same industry.
What is innovation?
A) The process of making small changes to a product without improving its function.
B) The creation or improvement of products, processes, or services to add value.
C) A temporary trend in product design.
D) The complete elimination of old products from the market.
✅ Answer: B) The creation or improvement of products, processes, or services to add value.
What does diffusion of innovation refer to?
A) The process by which an innovation spreads across a population.
B) The immediate success of an invention.
C) The elimination of competing technologies.
D) The failure of a new product in the market.
✅ Answer: A) The process by which an innovation spreads across a population.
Why do some companies suppress innovation?
A) To avoid financial risks and maintain existing revenue streams.
B) To encourage more competitors to enter the market.
C) To quickly replace their existing products.
D) To focus only on sustainable products.
✅ Answer: A) To avoid financial risks and maintain existing revenue streams.
Which of the following is an example of sustaining innovation?
A) Improving battery life in an existing smartphone model.
B) Introducing a completely new technology that disrupts the market.
C) Removing key features from a product to make it cheaper.
D) Copying a competitor’s design without changes.
✅ Answer: A) Improving battery life in an existing smartphone model.
What is disruptive innovation?
A) A small upgrade to an existing product.
B) A new technology that replaces established products and industries.
C) A product that remains unchanged over time.
D) A temporary marketing strategy.
✅ Answer: B) A new technology that replaces established products and industries.
Process innovation focuses on:
A) Improving manufacturing methods or business operations.
B) Changing a product’s external design.
C) Eliminating competition in the market.
D) Reducing product costs without improving efficiency.
✅ Answer: A) Improving manufacturing methods or business operations.
Architectural innovation occurs when:
A) The overall structure of a product is redesigned while keeping its components the same.
B) Only small improvements are made to an existing product.
C) A completely new technology is developed from scratch.
D) A company avoids making any changes to its product line.
✅ Answer: A) The overall structure of a product is redesigned while keeping its components the same.
Modular innovation focuses on:
A) Improving the components of a product while maintaining the original design.
B) Removing unnecessary parts from a product.
C) Completely redesigning an entire product.
D) Preventing changes to a product’s design.
✅ Answer: A) Improving the components of a product while maintaining the original design.
Configurational innovation refers to:
A) Changing the way different parts of a product interact with each other.
B) Making no changes to a product’s structure.
C) Replacing one part of a product with an identical one.
D) Eliminating unnecessary parts of a design.
✅ Answer: A) Changing the way different parts of a product interact with each other.
Which of the following is an example of radical innovation?
A) The invention of the smartphone, which transformed communication.
B) A small update to a car’s software.
C) A company changing its logo design.
D) The release of a new fashion trend.
✅ Answer: A) The invention of the smartphone, which transformed communication.