Chapter 6 + First Mover Adv + Omnichannel Retail + Customer Engagement

Question 1

Innovation radar as SCA

Answer 1

1. Change what the firm offers
2. Change who the customer is
3. Change how you sell to customers
4. Change where to sell to customers

Question 2

Offering equity

Answer 2

Refers to the core value that the performance of the product or service offers to the customer, absent any brand or relationship equity effects

Question 3

To be the best what should you focus on apart from innovation cause that is not enough anymore

Answer 3

• innovate with a focus on customer needs
• continuously refine their offerings
• protect their innovation

Question 4

Innovative offering strategies

Answer 4

Innovation radar fretwork
Stage gate process
Repositioning strategies
New-technology based strategies

Question 5

Stage-gate development process

Answer 5

A method for managing the product development process, breaking it into stages with specific criteria that most be met before moving to next stage. It helps reducing risks and improving the success rate of new products

1. Idea generation.
2. Development.
3. Testing.
4. Commercialization.

Question 6

Endowment effect

Answer 6

To include a new feature leads to people to overestimate the value of that feature, where they loose it

Question 7

2 types of innovation

Answer 7

Incremental
Radical

Question 8

Incremental innovation

Answer 8

Often pass each stage gate review more easlily because they involve less risks and are easier to evaluate

Question 9

Radical innovation

Answer 9

Might struggle to through the stages, especially if they are difficult to understand

Question 10

Jugaad

Answer 10

A Hindi word referring to an innovative fix or simple work-around, so these innovation practices seek creative, quick, unconventional, and frugal solutions to problems

Question 11

Repositioning strategy

Answer 11

An innovative offering can result from dramatically repositioning an existing offering such as removing some features or adding others

Question 12

Red ocean strategies

Answer 12

Like the STP method where firms compete for the same customer base and seek to differentiate their offerings based on existing market demands. It works well when customers and market dynamics are known and predictable

Question 13

Blue ocean strategies

Answer 13

Seek to create new, uncontested market spaces rather than competitive within existing ones. Firms need to innovate to introduce new value proposition that redefine the market or create entirely new demand. (Cirque du Soleil redifined circus by adding theatre and so on)

Question 14

Sources of first mover advantage

Answer 14

• Economic factors (economies of scale)
• preemption factors (supplier contract, geographic location)
• technological factors (capitalise on product and process innovation)
• behavioural factors(influence customer preferences and define the ideal product attributes

Question 15

Challenges to first mover advantage

Answer 15

• high demand of uncertainty (if future demand for a product is unclear)
• low barriers to entry (competitors can easily replicate)
• technological shifts (rapid change in technology can render first’s movers early investments obsolete)
• cost advantages by followers (if followers can enter the market with superior production processes or lower costs, they can outperform)

Question 16

Multi-channel what does it mean?

Answer 16

Offers multiples channels, stores, websites, apps, that operate independently. Customers experience different prices, promotions, or service across channels with little interaction between them.

Question 17

Omni-channel what it is?

Answer 17

Integrate all channels for s seamless and consistent experience. Customers can switch between channels smoothly, with synchronised data like loyalty points, purchase history, and promotions

Question 18

2 successful strategies of Omnichannel retailing

Answer 18

1. Short term strategies
   - create switching costs (loyalty programs and service contracts)
   - use of data analytics
   - product bundling
2. Long term strategies
   - integrate channels (dual channels)
   - exclusive products
   - focus on customer experience

Question 19

Challenges and opportunities in omnichannel retailing

Answer 19

1. Blurring barriers (you cannot rely only on location anymore)
2. Changing consumer behaviour (more use of mobile devices)
3. Retailer adaptation (focus on differentiation, product knowledge, offering integrated services offerings)

Question 20

Channel integration quality

Answer 20

Refer to a firm’s ability to provide customers with a seamless purchasing experience across all channels.
Key role in omnichannel retailing

Question 21

4 dimensions of CIQ Chanel integration quality

Answer 21

Channel service configuration
1. Breadth of channel service configuration: customers value having multiple options to complete their tasks (buying online or in store)
2. Transparency of channel service configuration: clear information on what services are available across channels, reducing confusion

Integrated interactions
3. Content consistency: ensuring that product informations, promotions, and prices are the same across alll channels
4. Process consistency: maintaining a consistent experience in terms of service quality, speed and interactions across channels

Question 22

Conjoint analysis

Answer 22

Statistical technique used in market research to understand how consumers value different features of a product. It helps in assessing customer preferences and predicting their decision making process by evaluating trade offs between various product attributes

Question 23

Part worth analysis

Answer 23

Part worths represent the value or preference that a consumer assigns to each level of a product attribut in a conjoint analysis. These values indicate the contribution of each attribute level to the overall preference for a product.

Question 24

Part worth analysis

Answer 24

Part worths represent the value or preference that a consumer assigns to each level of a product attribut in a conjoint analysis. These values indicate the contribution of each attribute level to the overall preference for a product.