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:
Crowdsourcing refers to the practice of obtaining input, ideas, or services by soliciting contributions from a large group of people, particularly from an online community. It involves gathering ideas or feedback from the public, often through open calls, to leverage the collective intelligence of a broad, diverse audience. This allows organizations to access a wide pool of knowledge and creativity, which can lead to innovative solutions or product ideas that might not emerge within a closed group or traditional research and development setting.
In the case of Kallton, the company is inviting its customers to suggest ideas for its upcoming product models. By encouraging the public to contribute their ideas, Kallton is essentially using crowdsourcing to generate new product concepts. Customers are not only contributing their thoughts but may also be rewarded if their ideas are short-listed for implementation. This is a direct example of how companies can tap into external resources (customers in this case) to enhance their product development processes.
Why not the other options?
- A) Marketing strategy development: This is the process of defining marketing strategies and positioning for a product or service in the market. It doesn’t focus on gathering ideas for new products from the public.
- C) Concept development: This is a phase in the new product development process where companies turn ideas into concrete product concepts, typically with a defined product prototype. While crowdsourcing can provide input during concept development, concept development itself is not crowdsourcing.
- D) Business analysis: This refers to assessing the commercial viability of a new product or service. It focuses on cost, profit, and market feasibility, not the generation of product ideas.
- E) Test marketing: This involves launching a new product in a limited market to gauge customer response before a full-scale launch. Test marketing occurs after product ideas have been developed, not during the idea generation phase.
Thus, Kallton is using crowdsourcing to generate new product ideas by engaging its customers directly for input and suggestions.