Innovation is defined as:

a) the commercialization of a new product or process.

b) the invention of a new product or process.

c) a new product or process idea.

d) the implementation of a new production method.

Question 2

Process innovation refers to:

a) the development of a new service.

b) the development of a new product.

c) the implementation of a new or improved production method.

d) the development of new products or services.

Question 3

Innovation can help to provide a temporary competitive advantage when:

a) barriers to entry are high.

b) barriers to imitation are low and intellectual property rights are difficult to enforce.

c) there are few other competitors.

d) barriers to entry are low.

Question 4

Following establishment of a dominant design in the product life cycle, what would you
expect to happen?

a) Emphasis on product innovation rather than process innovation.

 b) Emphasis on process innovation rather than product innovation.

c) Competition to increase as new firms enter the industry.

d) Competition to decrease as more firms exit than enter the industry.

Question 5

Established firms relative to new firms are better at:

a) all types of innovation.

b) innovation which is competence-enhancing.

c) innovation which is competence-destroying.

d) Innovation which is disruptive.

Question 6

In which markets are network effects likely?

a) Markets subject to increasing returns

b) 'Tippy' markets

c) Hi-tech product markets

d) All of the above

Question 7

Which of the following are valuable in a standards war?

a) Competitive advantage

b) Late mover advantage

c) Early mover advantage

d) Technological advantage

Question 8
The fundamental challenge of knowledge transfer in multinational firms is:

a) transferring explicit knowledge across borders.

b) transferring tacit knowledge across borders.

c) creating tacit knowledge in overseas subsidiaries.

d) transferring tacit and explicit knowledge across borders.

Question 9

What potential advantages can be gained from involving overseas subsidiaries in R&D
activities?

a) Local subsidiaries offer financial advantages such as lower land and labour costs.

b) Local subsidiaries offer access to local companies.

c) Local subsidiaries offer access to technical knowledge and skills.

d) Local subsidiaries offer financial advantages as well as access to local markets,

technical knowledge and skills.

Question 10

Outsourcing of innovation globally is more likely where:

a) Innovations are autonomous

b) Innovations are systemic

c) Innovations are systemic or autonomous

d) Innovations are made by service sector firms

Innovation is defined as:

Your answer:

b) the invention of a new product or process.

Correct answer:

a) the commercialization of a new product or process.

Feedback:

Innovation is defined as the commercialization of a new product or process.

Page reference: 349

Question 2

Process innovation refers to:

Your answer:

b) the development of a new product.

Correct answer:

c) the implementation of a new or improved production method.

Feedback:

Process innovation refers to the implementation of a new or improved production method.

Page reference: 349

Question 3

Innovation can help to provide a temporary competitive advantage when:

Your answer:

b) barriers to imitation are low and intellectual property rights are difficult to enforce.

Feedback:

Innovation can help to provide a temporary competitive advantage when barriers to imitation
are low and intellectual property rights are difficult to enforce.
Page reference: 356
Question 4

Following establishment of a dominant design in the product life cycle, what would you
expect to happen?

Your answer:

b) Emphasis on process innovation rather than product innovation.

Feedback:

Following establishment of a dominant design in the product life cycle there is expected to be
emphasis on process innovation rather than product.
Page reference: 350

Question 5

Established firms relative to new firms are better at:

You did not answer the question.

Correct answer:

b) innovation which is competence-enhancing.

Feedback:

Established firms relative to new firms are better at innovation which is competence-
enhancing.
Page reference: 357

Question 6

In which markets are network effects likely?

Your answer:

c) Hi-tech product markets

Correct answer:

d) All of the above

Feedback:

Network effects are likely in 'tippy' markets, hi-tech product markets, and markets subject to
increasing returns.
Page reference: 358-359

Question 7

Which of the following are valuable in a standards war?

Your answer:

b) Late mover advantage

Correct answer:

c) Early mover advantage

Feedback:

Early mover is an advantage in a standards war.

Page reference: 360

Question 8

The fundamental challenge of knowledge transfer in multinational firms is:

You did not answer the question.

Correct answer:

b) transferring tacit knowledge across borders.

Feedback:

The fundamental challenge of knowledge transfer in multinational firms is transferring tacit

knowledge across borders.
Page reference: 365

Question 9

What potential advantages can be gained from involving overseas subsidiaries in R&D
activities?

Your answer:

c) Local subsidiaries offer access to technical knowledge and skills.

Correct answer:

d) Local subsidiaries offer financial advantages as well as access to local markets, technical
knowledge and skills.

Feedback:

Advantages of involving overseas subsidiaries in R&D activities, include: local subsidiaries

offer financial advantages as well as access to local markets, and technical knowledge and
skills.
Page reference: 368

Question 10
Outsourcing of innovation globally is more likely where:

Your answer:

c) Innovations are systemic or autonomous

Correct answer:

a) Innovations are autonomous

Feedback:

Which one of the following is an advantage of the small firm in the innovation process?

A. Ability of the entrepreneur to carry out multiple tasks

B. Ability to raise finance
C. Ability to carry out R&D
D. Ability of the entrepreneur to act on new ideas or product development

The goals should be ____________ for the success of business plan.

A. Generalized
B. Specific
C. Limitless
D. Imaginary

LMM stands for:

A. Local Marble Market

B. Locally Manufactured Marble
C. Locally Manufactured Machinery
D. Local Meat Market

Creativity can be influenced by the relationship between an agency and:

Clients

Consumers
Controllers

Channels

Creativity is only
relevant to TV
advertising.

Your Answer: True

Correct Fals
Answer: e

2. Shimp (2010) proposes creative advertising

consists of three elements – complete:
1. C---------------
2. A---------------
3. N---------------

Your Answer: Connectedness, Novelty

and Appropriateness
Correct Answer: Connectedness,
Appropriateness and
Novelty

3. One of the main aims of creativity in

advertising is to gain:

Your Answer: Interest

Correct Answer: Attention

4. Complete the following statement:

_________ is a critical component of
__________ advertising effectiveness as it
_______ how consumers in different
countries and regions perceive advertising.

Your Answer: International/influences/Cult

ure
Correct Culture/International/influen
 Answer: ces

5. El-Murad and West (2004) present a paper in

the Journal of Advertising Research which
examines which of the following:

Your Answer: Copywriting and art

direction
Correct Answer: Defining advertising
creativity

6. The creative partnership in a typical

advertising agency consists of which two
roles?
Your Answer:
touy

Art Director and Copywriter

7. Who would normally be responsible for

developing the creative brief in an advertising
agency?

Your Answer: Account planner

8. Creativity can be influenced by the

relationship between an agency and:

Your Answer: Controllers

Correct Answer: Clients

9. Sir John Hegarty is the Global Artistic Director

for which agency:

Your Answer: BBH

10. Advertisers in many Asian nations use

emotional rather than cognitive or rational
appeals
 Your Answer: False
Correct Answer: True

11. Name three types of products where appeals

based on sex might be effective?
Your Answer:
ford

Perfume, fashion, jewellery

12. Music has the potential to gain _________

and assist product ________ in
advertisements. Complete blanks.

Your Answer: differentiation/ Attention

Correct Answer: Attention/ differentiation

13. Divergence dimensions of advertising

creativity include which of the following:

Your Answer: Artistic value

Correct Answers: Artistic value

Originality

Flexibility

Synthesis

14. Stuhlfaut (2011) offers a concept which he

refers to as the Creative ______.

Your Answer: Content

Correct Answer: Code

15. Successful creativity leads from identifying a

client’s:

Your Answer: History

Correct Answer: Needs
16. Burtenshaw et al (2006: 90) suggest that a
good creative brief ‘should be written in a way
that ________ creativity and promotes
__________ ideas’. Complete missing words.

Your Answer: Stimulates/original

17. The principle of building a border around an

idea or story and then presenting a contained
and managed view of an issue is known as:

Your Answer: Bordering

Correct Answer: Framing

18. UGC stands for what?

Your Answer:
gh

User Generated Content

19. UGC can be derived through which of the

following processes:

Your Answer: Friend sources

Correct Answers: Open sources

Crowd sources

Friend sources

20. Shimp (2010) identifies that although

advertisers aim for their ads to be creative,
they also need them to _________ in the
memory of the receiver. Complete blank:

Your Answer: Hold

Correct Answer: Stick

21. Can advertising messages be positive or

 negative?

Your Answer: False

Correct Answer: True

22. Which brand is well known for ‘edgy’

advertising?

Your Answer: Benetton

23. Name four types of Information based

appeals.
Your Answer:
gf

Factual/ Slice of
Life/Demonstration/Comparison

24. Name four types of Emotional based appeals.

Your Answer:
gh

Fear/Humour/Animation/Sex/Music/Fant
asy and Surrealism

25. The Cannes Lions Creative Effectiveness

Awards are based on cinema advertising –
true or false?

Your Answer: False