Identifying huge consumer demand, Jumpstart Inc., an automobile manufacturer, pioneered the production of battery-operated cars. The product met with initial success in the market leading Jumpstart Inc. to increase production in huge volumes. However, over a period of time, consumer needs evolved and consumers sought more sophisticated technology-driven cars, and the sales of these cars dropped heavily. This illustrates the _____ risk that was not considered during the idea screening phase.
A) functional
B) hierarchical
C) market
D) internal

Question

Quizplus · Accepted Answer

The scenario illustrates the market risk that was not considered during the idea screening phase. The company failed to anticipate the changing consumer needs and preferences, leading to a drop in sales. A thorough analysis of the market trends and consumer needs could have helped the company mitigate this risk.

Identifying Huge Consumer Demand, Jumpstart Inc