Question

Which type of innovation seeks to make a better product to target the high-end of the market?

• A. Sustaining innovation
• B. Low-end disruptive innovation
• C. New market disruptive innovation
• D. Quantity based innovation

Answer 1

The Correct Option is A

Sustaining innovation is a term commonly used in the domain of innovation and entrepreneurship to describe the process of making improvements to existing products or services. This type of innovation is focused on enhancing and refining an existing product to better meet the needs of current customers, keeping pace with market demand, and typically targeting the high-end or more profitable segments of the market.

Explanation

1. Sustaining Innovation: This targets improvements in performance for existing products within established markets. Companies often implement sustaining innovations to attract premium customers willing to pay more for enhanced functionalities, higher quality, or advanced features. Hence, it is the appropriate choice for targeting the high-end of the market.
2. Low-end Disruptive Innovation: This approach seeks to provide low-cost products that initially capture the lower end of the market. Over time, they improve to challenge incumbent businesses, but the primary target is not the high-end customers initially.
3. New Market Disruptive Innovation: This type of innovation creates entirely new markets by offering products that offer different values not available in existing markets. It is not aimed at the high-end segment but rather potential new customers who might have unmet needs.
4. Quantity Based Innovation: This is not a commonly recognized term in the field of innovation. This option does not accurately describe a strategy that targets high-end market improvements.

Conclusion

Given the options and definitions, sustaining innovation is the correct answer because it specifically aims to enhance a product to meet the needs of the high-end market. The primary objective is to refine and improve existing products for customers who value the improvements and are willing to pay for them.