Question 1

The initial cost of a good itself can be a switching cost.

Accepted Answer

A) True 
 B)False

Question 2

New product development time increases when using strategic alliances and cross-functional teams.

Accepted Answer

A) True 
 B)False

Question 3

A delayed entry into a market with a new technology is preferred when:

Accepted Answer

A)  support by complementary goods providers is initially high. 
B)  enabling technologies are initially less mature. 
C)  customer uncertainty is low in the beginning. 
D)  the scope for improving over previous technologies is high. 
A)  support by complementary goods providers is initially high. 
B)  enabling technologies are initially less mature. 
C)  customer uncertainty is low in the beginning. 
D)  the scope for improving over previous technologies is high.

Question 4

The tendency of existing firms to be slow to respond to changes in the industry environment due to their large size,established routines,or prior strategic commitments to existing suppliers and customers is known as:

Accepted Answer

A)  monopoly costs. 
B)  path dependency. 
C)  incumbent inertia. 
D)  technology trajectory. 
A)  monopoly costs. 
B)  path dependency. 
C)  incumbent inertia. 
D)  technology trajectory.

Question 5

If a firm has a longer new product development process,it means that the firm will:

Accepted Answer

A)  have a better chance to introduce a refined version of a competitor's technology. 
B)  face a high possibility of losing to an early entrant. 
C)  have an increased ability to respond to changes in customer requirements. 
D)  overburden its development team by following a parallel development process. 
A)  have a better chance to introduce a refined version of a competitor's technology. 
B)  face a high possibility of losing to an early entrant. 
C)  have an increased ability to respond to changes in customer requirements. 
D)  overburden its development team by following a parallel development process.

Question 6

First movers typically invest more in exploratory research than late entrants.

Accepted Answer

A) True 
 B)False

Question 7

After much experimentation and trial and error,TechSmart launched a GPS-enabled shoe into the market.It was the first company to introduce such footwear.Later,several other firms also began to offer similar shoes.Which of the following is most likely to be true for TechSmart?

Accepted Answer

A)  TechSmart had incurred significant research and development expenses. 
B)  TechSmart's ability to exploit monopoly rents will be low. 
C)  TechSmart will be able to exploit incumbent inertia of the late entrants. 
D)  TechSmart had to invest less on establishing distribution channels and generating consumer awareness, compared to firms that entered the market after it. 
A)  TechSmart had incurred significant research and development expenses. 
B)  TechSmart's ability to exploit monopoly rents will be low. 
C)  TechSmart will be able to exploit incumbent inertia of the late entrants. 
D)  TechSmart had to invest less on establishing distribution channels and generating consumer awareness, compared to firms that entered the market after it.

Question 8

Early followers enter the market only after a product begins to penetrate the mass market.

Accepted Answer

A) True 
 B)False

Question 9

For a very new product technology,market research will be of great help.

Accepted Answer

A) True 
 B)False

Question 10

Other things being equal,less customer uncertainty favors earlier timing of entry.

Accepted Answer

A) True 
 B)False

Question 11

In the video game console industry,Magnitude was the first firm to introduce a console in the market.However,consumers were uncertain about the product,and its high costs discouraged consumers from purchasing it.Eventually,Magnitude withdrew the product from the market.A few years later,Mantel and Adventura came up with their respective gaming consoles and successfully established their products.Mantel and Adventura will be considered as:

Accepted Answer

A)  pioneers. 
B)  early followers. 
C)  laggards. 
D)  late movers. 
A)  pioneers. 
B)  early followers. 
C)  laggards. 
D)  late movers.

Question 12

When a market is characterized by mature enabling technologies,a firm should enter the market late.

Accepted Answer

A) True 
 B)False

Question 13

Not all innovations require complementary goods.

Accepted Answer

A) True 
 B)False

Question 14

Late entrants typically bear the bulk of research and development expenses.

Accepted Answer

A) True 
 B)False

Question 15

Many start-up firms demise because new innovations tend to be adopted very slowly at first.

Accepted Answer

A) True 
 B)False

Question 16

The first entrants to sell in a new product or service category are referred to as _____.

Accepted Answer

A)  pioneers 
B)  early leaders 
C)  early followers 
D)  laggards 
A)  pioneers 
B)  early leaders 
C)  early followers 
D)  laggards

Question 17

Alpen Inc.is a manufacturing firm that holds a patent for a new food processing machine,which is considerably more efficient and safe.Being the only firm that manufactures that product,Alpen Inc.charges a very high price for its products.This is referred to as _____.

Accepted Answer

A)  monopoly rent 
B)  technology lag 
C)  incumbent inertia 
D)  absorptive capacity 
A)  monopoly rent 
B)  technology lag 
C)  incumbent inertia 
D)  absorptive capacity

Question 18

Which of the following is an example of an enabling technology for the computer hardware industry?

Accepted Answer

A)  Laptops gradually replacing desktops at workplace. 
B)  Computer hardware has zero utility without a microprocessor. 
C)  Employees using anti-glare eyeglasses to increase readability from computer screens. 
D)  Availability of special chairs with back support for people who work for long hours on computers. 
A)  Laptops gradually replacing desktops at workplace. 
B)  Computer hardware has zero utility without a microprocessor. 
C)  Employees using anti-glare eyeglasses to increase readability from computer screens. 
D)  Availability of special chairs with back support for people who work for long hours on computers.

Question 19

Jacob had been using WordPerfect 5.1 for DOS for several years and was quite an expert at it.When his boss wanted him to change to a Windows-based system,Jacob told his boss that it would slow him down.Jacob also pointed out that it would cost a lot of money to train him to use the new system.This is an example of:

Accepted Answer

A)  cognitive dissonance. 
B)  high switching costs. 
C)  high monopoly rents. 
D)  early entry continuation. 
A)  cognitive dissonance. 
B)  high switching costs. 
C)  high monopoly rents. 
D)  early entry continuation.

Question 20

If the aspects that customers have come to expect in a technology are difficult for competitors to imitate,a technology leader:

Accepted Answer

A)  will have to bear monopoly costs. 
B)  can yield sustained monopoly rents. 
C)  will have lower bargaining power. 
D)  will have higher switching costs. 
A)  will have to bear monopoly costs. 
B)  can yield sustained monopoly rents. 
C)  will have lower bargaining power. 
D)  will have higher switching costs.

The initial cost of a good itself can be a switching cost.

New product development time increases when using strategic alliances and cross-functional teams.

A delayed entry into a market with a new technology is preferred when:

The tendency of existing firms to be slow to respond to changes in the industry environment due to their large size,established routines,or prior strategic commitments to existing suppliers and customers is known as:

If a firm has a longer new product development process,it means that the firm will:

First movers typically invest more in exploratory research than late entrants.

After much experimentation and trial and error,TechSmart launched a GPS-enabled shoe into the market.It was the first company to introduce such footwear.Later,several other firms also began to offer similar shoes.Which of the following is most likely to be true for TechSmart?

Early followers enter the market only after a product begins to penetrate the mass market.

For a very new product technology,market research will be of great help.

Other things being equal,less customer uncertainty favors earlier timing of entry.

When a market is characterized by mature enabling technologies,a firm should enter the market late.

Not all innovations require complementary goods.

Late entrants typically bear the bulk of research and development expenses.

Many start-up firms demise because new innovations tend to be adopted very slowly at first.

The first entrants to sell in a new product or service category are referred to as _____.

Alpen Inc.is a manufacturing firm that holds a patent for a new food processing machine,which is considerably more efficient and safe.Being the only firm that manufactures that product,Alpen Inc.charges a very high price for its products.This is referred to as _____.

Which of the following is an example of an enabling technology for the computer hardware industry?

If the aspects that customers have come to expect in a technology are difficult for competitors to imitate,a technology leader:

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

The initial cost of a good itself can be a switching cost.

New product development time increases when using strategic alliances and cross-functional teams.

A delayed entry into a market with a new technology is preferred when:

The tendency of existing firms to be slow to respond to changes in the industry environment due to their large size,established routines,or prior strategic commitments to existing suppliers and customers is known as:

If a firm has a longer new product development process,it means that the firm will:

First movers typically invest more in exploratory research than late entrants.

After much experimentation and trial and error,TechSmart launched a GPS-enabled shoe into the market.It was the first company to introduce such footwear.Later,several other firms also began to offer similar shoes.Which of the following is most likely to be true for TechSmart?

Early followers enter the market only after a product begins to penetrate the mass market.

For a very new product technology,market research will be of great help.

Other things being equal,less customer uncertainty favors earlier timing of entry.

When a market is characterized by mature enabling technologies,a firm should enter the market late.

Not all innovations require complementary goods.

Late entrants typically bear the bulk of research and development expenses.

Many start-up firms demise because new innovations tend to be adopted very slowly at first.

The first entrants to sell in a new product or service category are referred to as _____.

Alpen Inc.is a manufacturing firm that holds a patent for a new food processing machine,which is considerably more efficient and safe.Being the only firm that manufactures that product,Alpen Inc.charges a very high price for its products.This is referred to as _____.

Which of the following is an example of an enabling technology for the computer hardware industry?

If the aspects that customers have come to expect in a technology are difficult for competitors to imitate,a technology leader:

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