Which of the Following Is a Difference Between Experiential Approach

question 24

Multiple Choice

Which of the following is a difference between experiential approach to innovation and compression approach to innovation? 

• A) ​Experiential approach is used in fast-growing environments, whereas compression approach is used in highly uncertain environments. 
• B) ​Experiential approach is used in periods of incremental change, whereas compression approach is used in periods of discontinuous change. 
• C) ​Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design. 
• D) ​Experiential approach is used to shorten the time of individual steps, whereas compression approach is used to test the improved product or service prototype.

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Definitions:

Neoclassical Assumption

A perspective in economics that assumes individuals have rational preferences, markets are capable of reaching equilibrium, and information is symmetrically distributed.

System 1

A term often used in psychology and behavioral economics, referring to the brain's fast, automatic, and intuitive approach to decision-making.

Rational Behavior

Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility.

System 2

A term often used in psychology to refer to the deliberate, effortful, and analytical mode of thinking, contrasted with fast, automatic System 1 thinking.