In the 1980s and 1990s, Neon Corp. was the most successful firm in the televisio
ID: 425921 • Letter: I
Question
In the 1980s and 1990s, Neon Corp. was the most successful firm in the television market. The firm believed that its competitors would never be able to produce televisions comparable to its quality and cost. As a result, it was unable to respond to the new generations of television with which its Japanese competitors had begun to infiltrate the market. Eventually, Neon lost its market leadership to its competitors. This scenario most clearly exemplifies the ________.
Icarus Paradox
Hawthorne effect
Idiosyncrasy Credit
Giffen effect
Icarus Paradox
Hawthorne effect
Idiosyncrasy Credit
Giffen effect
Explanation / Answer
Icarus paradox: It is a phenomenon in which business fail abruptly after brief success. Here factors which lead to success of business will ultimately leads to failure of product.
Hawthrone effect: It is a phenomenon in which individual modify his behavior in response to their awareness of being observed.
Idiosyncrasy Credit: It is a concept in social psychology that describes an individual's capacity to acceptably deviate from group expectations.
Giffen effect: It is a type of effect where demand for good increases as price increases.
Ans: Icarus Paradox – Explanation – Neon corp believed that its competitor cannot produce quality television at low cost. This was proved falls by Japanese manufacturer. Hence it is Icarus Paradox.