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.)