Which of the statements are true of innovations?

(A) Innovations are a must to survive in business
(B) Discontinuous innovations lead to failures
(C) Continuous innovations do not disrupt established usage and behaviour patterns
(D) Line extensions are discontinuous innovations
(E) In discontinuous innovations, there is a change not only in technology but also in behavioural patterns of usage and consumption

Choose the correct answer from the options given below:

Correct option is D

Innovation is critical for business survival and growth because it helps companies stay competitive and respond to changing market demands.

A. Innovations are a must to survive in business: True. Continuous innovation allows firms to meet evolving customer needs, improve efficiency, and fend off competition.

B. Discontinuous innovations lead to failures: False. Discontinuous innovations are breakthrough changes that often disrupt markets but do not inherently lead to failure. Many major technological advances are discontinuous innovations.

C. Continuous innovations do not disrupt established usage and behaviour patterns: True. Continuous innovations are incremental improvements that maintain existing consumer behaviors and market structures.

D. Line extensions are discontinuous innovations: False. Line extensions typically involve minor modifications or additions to existing products and are examples of continuous, not discontinuous, innovations.

E. In discontinuous innovations, there is a change not only in technology but also in behavioural patterns of usage and consumption: True. Discontinuous innovations transform how consumers use products, requiring new behaviors or adoption patterns.

Information Booster:

Innovation drives competitiveness and market relevance. Continuous innovations involve minor improvements that keep user habits intact. Discontinuous innovations bring radical change in technology and behavior, often creating new markets. Line extensions are small product changes within the same category. Successful companies balance both types to adapt and grow. Behavioral change is significant in adopting discontinuous innovations, which require customer learning and acceptance.

Additional Knowledge:

• Statement B (Discontinuous innovations lead to failures): Incorrect because discontinuous innovations are breakthrough advancements that can lead to significant success. Although risky, many successful technologies (like the internet) were discontinuous innovations.

• Statement D (Line extensions are discontinuous innovations): Incorrect as line extensions are incremental improvements or additions and do not fundamentally alter technology or behavior, thus are continuous innovations.