Week 6 & 7

Question 1

Passive innovation resistance

Answer 1

Consumers show initial resistance to change
Passive: love for equilibrium
Active: attitude towards new product

Question 2

Marketing steps

Answer 2

1. Marketing research
2. Choosing a value proposition
3. Construct and integrate marketing program
4. Build profitable relationship and customer delight
5. Capture value from customer

Question 3

Maslow’s hierarchy of needs

Answer 3

Self-actualization
Esteem (status symbol)
Belongings and love
Safety
Psychological

Question 4

3 levels of product

Answer 4

• Core
• Actual
• Augmented

Question 5

Marketing basics

Answer 5

Segmentation: divide the total market into smaller segments
Targeting: select segments to enter
Positioning: position the market offers in the customers mind
Differentiation: differentiate the market offering to create superior product value for customers

Question 6

Brand developing

Answer 6

Creating brand
Brand stretching
Brand extension
Co-branding

Question 7

Brand stretching vs brand extension

Answer 7

stretching is a new market while extension is the same market

Question 8

Strategies how to price

Answer 8

Cost-based
Competitor oriented
Market-led

Question 9

Strategies evolution of price

Answer 9

Skimming: high price and decreasing
Penetration: low price and increaing

Question 10

When to do which pricing strategy

Answer 10

High promotion high price: rapid skimming
High promotion low price: rapid penetration
Low promotion high price: slow skimming
Low promotion low price: slow penetration

Question 11

Demi-Moore’s law

Answer 11

Markets are hesitant to new things because they like balance and equilibria

Question 12

Challenges innovations

Answer 12

• Unravel status quo
• Create a new status quo

Question 13

Successful go-to-market campaign

Answer 13

• Reason back from endgame
• Complement power plays
• Incentives to benefits, delivery and consumers
• Preserve flexibility

Question 14

Passive resistance solution

Answer 14

• Mental stimulation
• Benefit comparison

Question 15

Cognitive styles for staying at status quo

Answer 15

• routine lovers
• Cognitive rigidity
• emotional reaction
• short term focus

Question 16

Relational rents

Answer 16

Profits reached by exhange relationship as they are not achieved in isolation

Question 17

Relational view

Answer 17

combination of resources may yielad an advantage in the form of relational rents and competitive advantage

Question 18

Relational view sources of SCA

Answer 18

• relation specific asset (site, human, physical)
• knowledge sharing routines
• complementary resources
• effective governance

Question 19

Knowledge sharing routines

Answer 19

Interorganizational learning
Partner-specific absorptive capacity
Cognitive proximity
Alignment of incentives

Question 20

Complementary resources

Answer 20

• indivisible assets, competencies and capabilities
• ability to identify partners and evaluate potential complementarities
• organization complementarity

Question 21

Mechanisms preserving relational rents

Answer 21

Interorganizational asset interconnectedness
Partner scarcity
Resource indivisibility
Insitutional environment
Causal ambiguity
Time compression diseconomies

Question 22

Types of open innovation

Answer 22

Sourcing (outside-in)
Acquiring (outside-in)
Revealing (inside-out)
Selling/licensing (inside-out)

Question 23

Startup corporation collaborations

Answer 23

• Corporate venture capital
• corporate incubation
• outside in startup program
• inside out platform startup program

Question 24

RBV vs RV

Answer 24

single firm vs multiple firms
closed knowledge vs open knowledge

Question 25

Crowd based innovation

Answer 25

- crowd contests - collaborative communities - crowd complementors - crowd labor market

Question 26

Why the crowd?

Answer 26

- loose and decentralized - high scale and diversity - intrinsic motivation - available on demand

Question 27

Arms-length relationship vs partnership

Answer 27

* Arms-length relationship: o Nonspecific asset investments o Minimal information exchange o Separable technological & informational systems o Low transaction costs & minimal investment in governance mechanisms * Partnership: o Investment in relation-specific assets o Substantial knowledge exchange & joint learning o Combining scarce, but complementary resources or capabilities o Lower transaction costs than competitors due to governance mechanisms

Question 28

Effective governance

Answer 28

greater ability to employ informal rather than formal self-enforcing safeguards - Lower marginal costs - difficulty imitation - Lower contracting/monitoring/adaptation/recontracting costs - superior incentives for value-creating initiatives

Question 29

Crowd contests opportunities

Answer 29

- when unclear which combination of skills and technical approach is needed - when experimentation is needed - insight for technological frontier of feasibility

Question 30

Crowd contests challenges

Answer 30

identifying problem making the problem understandable without spilling company secrets solutions must be easy implamentable

Question 31

Crowd collaborative communities opportunities

Answer 31

output of multiple contributors to one final solution when problem is easy to orchestrate

Question 32

Crowd collaborative communities problems

Answer 32

IP protection almost impossible

Question 33

Crowd complementors opportunities

Answer 33

provision of solution to more than one problem can expand demand for the product

Question 34

Crowd complementors challenges

Answer 34

crowd needs access to function of core product

Question 35

Crowd labor market opportunities

Answer 35

on demand matching and immediate support on a huge scale contract can be long term relationships Easy for repititive tasks

Question 36

Crowd labor market problems

Answer 36

need to know which skills are needed able to find the specific skill