Question 1

A firm intending to refine an earlier entrant's technology should avoid fast-cycle development processes.

Accepted Answer

A) True 
 B)False  False

Question 2

Explain why sometimes the follower and not the first mover of a new technology is more successful in the marketplace.

Accepted Answer

Although first movers have the opportunity to shape the market and have the first shot at becoming the dominant design,often they are not sure of consumer preferences.As consumer preferences become known,they may have to modify their product designs.Sometimes they must also engage in consumer education about using the new technology,which can be an expensive proposition.Followers can capitalize on learning about consumer preferences from the marketplace.They can introduce products that meet consumer preferences without having to make costly adjustments.They do not have to worry as much about consumer education.This helps them in becoming more successful in the marketplace.

Question 3

In industries that have increasing returns to adoption,allowing competitors to get a head start in building an installed base is a safe strategy.

Accepted Answer

A) True 
 B)False  False

Question 4

The time invested by buyers to become familiar with a product's operation cannot be considered as a switching cost.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following calls for an early entry into a market?

Accepted Answer

A)  Immature enabling technologies 
B)  Unavailability of complementary goods 
C)  High customer uncertainty 
D)  Low entry barriers 
A)  Immature enabling technologies 
B)  Unavailability of complementary goods 
C)  High customer uncertainty 
D)  Low entry barriers

Question 6

In an industry characterized by increasing returns to adoption,there can be powerful advantages to being an early provider.

Accepted Answer

A) True 
 B)False

Question 7

When Pioneer Athletics wanted to provide better landing mats for gymnasts,it asked its supplier Delta Foam Industries (DFI) used a new processes to manufacture higher quality,durable foam for use in its mats.This foam represents a(n) _____ for Pioneer Athletics.

Accepted Answer

A)  network externality 
B)  monopoly cost 
C)  enabling technology 
D)  incumbent inertia 
A)  network externality 
B)  monopoly cost 
C)  enabling technology 
D)  incumbent inertia

Question 8

All pioneers face customer uncertainty.

Accepted Answer

A) True 
 B)False

Question 9

What assumptions underlie the use of timing of entry strategies into the market for new products?

Accepted Answer

It is assumed that timing of entry is a

Question 10

The credibility of a firm can influence the rate of adoption of its technology.

Accepted Answer

A) True 
 B)False

Question 11

Early leaders are firms that are the first to enter the market.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of first movers relative to early followers and late entrants?

Accepted Answer

A)  Cost of developing necessary production processes and complementary goods is lower for first movers. 
B)  First movers are in a better position to exploit buyer switching costs and also to reap increasing returns advantages. 
C)  First movers, being incumbents, have greater ability than later entrants to respond to changes in the industry environment and adopt newer production processes. 
D)  First movers fail to capture scarce resources such as key locations, government permits, access to distribution channels, and relationships with suppliers. 
A)  Cost of developing necessary production processes and complementary goods is lower for first movers. 
B)  First movers are in a better position to exploit buyer switching costs and also to reap increasing returns advantages. 
C)  First movers, being incumbents, have greater ability than later entrants to respond to changes in the industry environment and adopt newer production processes. 
D)  First movers fail to capture scarce resources such as key locations, government permits, access to distribution channels, and relationships with suppliers.

Question 13

Jupiter Inc.,a software firm,is starting to face competition from the new entrant Coral Inc.Jupiter Inc.wants to prevent its existing customers from switching to Coral's newly developed software.Which of the following measures should Jupiter Inc.adopt?

Accepted Answer

A)  Ensure that customers find its software more convenient and simpler to use, as compared to that of Coral Inc. 
B)  Keep the initial cost of the software higher than that of Coral Inc. 
C)  Keep the prices of the complements required for the software higher than that of Coral Inc. 
D)  Ensure that fewer complementary products are availability for its products, as compared to that of Coral Inc. 
A)  Ensure that customers find its software more convenient and simpler to use, as compared to that of Coral Inc. 
B)  Keep the initial cost of the software higher than that of Coral Inc. 
C)  Keep the prices of the complements required for the software higher than that of Coral Inc. 
D)  Ensure that fewer complementary products are availability for its products, as compared to that of Coral Inc.

Question 14

Marine Systems was the first company to develop inventory management software specifically for hotels and restaurants.Soon after Marine Sytems had launched its product,Unicorn Systems developed similar software.The software developed by Unicorn Systems outperformed the one developed Marine Systems,and it eventually became the market leader.Unicorn Systems is an example of a(n) _____.

Accepted Answer

A)  pioneer 
B)  late mover 
C)  early follower 
D)  laggard 
A)  pioneer 
B)  late mover 
C)  early follower 
D)  laggard

Question 15

A technology may be underdeveloped and its fit with customer needs unknown in the early market stages.

Accepted Answer

A) True 
 B)False

Question 16

Fashion Fair,the first mover in the "all year discount" stores market,lost its market share to a late entrant-Brand Fair.Brand Fair operated its discount stores solely over the Internet,which,in turn,saved a lot of expenses.However,Fashion Fair was unable to adopt the online store business model due to its existing contracts with suppliers and investment in a physical infrastructure.This is an example of:

Accepted Answer

A)  incumbent inertia. 
B)  monopoly rents. 
C)  path dependency. 
D)  technology spillover. 
A)  incumbent inertia. 
B)  monopoly rents. 
C)  path dependency. 
D)  technology spillover.

Question 17

If _____ is high,firms will have to enter a market early.

Accepted Answer

A)  threat of competitive entry 
B)  entry barrier 
C)  inability to improve previous technology 
D)  customer ambiguity 
A)  threat of competitive entry 
B)  entry barrier 
C)  inability to improve previous technology 
D)  customer ambiguity

Question 18

Which of the following is an advantage of being a later entrant into a market?

Accepted Answer

A)  Firms can capture scarce resources. 
B)  Firms do not have to invest in exploratory research. 
C)  Firms have to develop their own supply and distribution channels. 
D)  Firms are unaffected by switching costs. 
A)  Firms can capture scarce resources. 
B)  Firms do not have to invest in exploratory research. 
C)  Firms have to develop their own supply and distribution channels. 
D)  Firms are unaffected by switching costs.

Question 19

If entry barriers are high,entering a market early becomes necessary.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true of customer preferences?

Accepted Answer

A)  The importance of technological features to customers stays constant over time. 
B)  Customers can differ from producers in their understanding of a new technology. 
C)  All pioneers of new-to-the-world technologies face customer uncertainty. 
D)  Other things being equal, more customer uncertainty favors earlier timing of entry. 
A)  The importance of technological features to customers stays constant over time. 
B)  Customers can differ from producers in their understanding of a new technology. 
C)  All pioneers of new-to-the-world technologies face customer uncertainty. 
D)  Other things being equal, more customer uncertainty favors earlier timing of entry.

A firm intending to refine an earlier entrant's technology should avoid fast-cycle development processes.

Explain why sometimes the follower and not the first mover of a new technology is more successful in the marketplace.

In industries that have increasing returns to adoption,allowing competitors to get a head start in building an installed base is a safe strategy.

The time invested by buyers to become familiar with a product's operation cannot be considered as a switching cost.

Which of the following calls for an early entry into a market?

In an industry characterized by increasing returns to adoption,there can be powerful advantages to being an early provider.

When Pioneer Athletics wanted to provide better landing mats for gymnasts,it asked its supplier Delta Foam Industries (DFI) used a new processes to manufacture higher quality,durable foam for use in its mats.This foam represents a(n) _____ for Pioneer Athletics.

All pioneers face customer uncertainty.

What assumptions underlie the use of timing of entry strategies into the market for new products?

The credibility of a firm can influence the rate of adoption of its technology.

Early leaders are firms that are the first to enter the market.

Which of the following statements is true of first movers relative to early followers and late entrants?

Jupiter Inc.,a software firm,is starting to face competition from the new entrant Coral Inc.Jupiter Inc.wants to prevent its existing customers from switching to Coral's newly developed software.Which of the following measures should Jupiter Inc.adopt?

A technology may be underdeveloped and its fit with customer needs unknown in the early market stages.

If _____ is high,firms will have to enter a market early.

Which of the following is an advantage of being a later entrant into a market?

If entry barriers are high,entering a market early becomes necessary.

Which of the following statements is true of customer preferences?

Introduction

Sources of Innovation

Types and Patterns of Innovation

Standards Battles and Design Dominance

Defining the Organizations Strategic Direction

Choosing Innovation Projects

Collaboration Strategies

Protecting Innovation

Organizing for Innovation

Managing the New Product Development Process

Managing New Product Development Teams

Crafting a Deployment Strategy

Filters

Exam 5: Timing of Entry

A firm intending to refine an earlier entrant's technology should avoid fast-cycle development processes.

Explain why sometimes the follower and not the first mover of a new technology is more successful in the marketplace.

In industries that have increasing returns to adoption,allowing competitors to get a head start in building an installed base is a safe strategy.

The time invested by buyers to become familiar with a product's operation cannot be considered as a switching cost.

Which of the following calls for an early entry into a market?

In an industry characterized by increasing returns to adoption,there can be powerful advantages to being an early provider.

When Pioneer Athletics wanted to provide better landing mats for gymnasts,it asked its supplier Delta Foam Industries (DFI) used a new processes to manufacture higher quality,durable foam for use in its mats.This foam represents a(n) _____ for Pioneer Athletics.

All pioneers face customer uncertainty.

What assumptions underlie the use of timing of entry strategies into the market for new products?

The credibility of a firm can influence the rate of adoption of its technology.

Early leaders are firms that are the first to enter the market.

Which of the following statements is true of first movers relative to early followers and late entrants?

Jupiter Inc.,a software firm,is starting to face competition from the new entrant Coral Inc.Jupiter Inc.wants to prevent its existing customers from switching to Coral's newly developed software.Which of the following measures should Jupiter Inc.adopt?

A technology may be underdeveloped and its fit with customer needs unknown in the early market stages.

If _____ is high,firms will have to enter a market early.

Which of the following is an advantage of being a later entrant into a market?

If entry barriers are high,entering a market early becomes necessary.

Which of the following statements is true of customer preferences?

Introduction

Sources of Innovation

Types and Patterns of Innovation

Standards Battles and Design Dominance

Defining the Organizations Strategic Direction

Choosing Innovation Projects

Collaboration Strategies

Protecting Innovation

Organizing for Innovation

Managing the New Product Development Process

Managing New Product Development Teams

Crafting a Deployment Strategy

Filters