Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using __ to generate new product ideas.
A) marketing strategy development
B) crowdsourcing
C) concept development
D) business analysis
E) test marketing
The correct answer and explanation is :
The correct answer is:
B) Crowdsourcing
Explanation:
Kallton is utilizing crowdsourcing as a method to generate new product ideas. Crowdsourcing is a technique where a company seeks ideas, insights, or contributions from a large group of people, often through the internet or public platforms. Instead of relying solely on internal research and development teams, companies can tap into a diverse range of perspectives from customers, enthusiasts, and industry experts.
By inviting customers to suggest ideas for its upcoming product model, Kallton is leveraging external creativity and innovation. This approach has several benefits:
- Enhanced Creativity and Fresh Ideas – Customers are the end-users of the products, and their feedback can lead to innovative features or improvements that internal teams might overlook.
- Customer Engagement and Loyalty – Allowing customers to participate in product development makes them feel valued and strengthens their connection with the brand.
- Market Validation – Ideas suggested by customers indicate actual market demand, reducing the risk of launching an unwanted or unsuccessful product.
- Cost-Efficient Innovation – Instead of spending excessive resources on R&D, Kallton can collect viable ideas at a lower cost.
- Competitive Advantage – By actively involving customers in the ideation process, Kallton can stay ahead of competitors by quickly identifying emerging trends.
Other options, such as marketing strategy development, concept development, business analysis, and test marketing, focus on different stages of product development but do not specifically involve external idea generation.
Thus, crowdsourcing is the best answer in this scenario because Kallton is seeking product ideas directly from customers through public participation.