Question 1

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 D

Question 2

Other things being equal,an entrant with a strong reputation can attract adoptions earlier than entrants without strong reputations.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following statements is true of a firm entering a market too early?

Accepted Answer

A)  Distribution channels required for the firm's products will be well established prior to its entry. 
B)  Enabling technologies and complements available to the firm will be immature. 
C)  The firm's competitors would have already captured controlling shares of the market. 
D)  The firm will not be able to reap the advantages of monopoly rent. 
A)  Distribution channels required for the firm's products will be well established prior to its entry. 
B)  Enabling technologies and complements available to the firm will be immature. 
C)  The firm's competitors would have already captured controlling shares of the market. 
D)  The firm will not be able to reap the advantages of monopoly rent. B

Question 4

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 opportuni

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Component technologies that are necessary for the performance or desirability of a given innovation are referred to as _____.

Accepted Answer

A)  architectural technologies 
B)  diffused technologies 
C)  primary technologies 
D)  enabling technologies 
A)  architectural technologies 
B)  diffused technologies 
C)  primary technologies 
D)  enabling technologies

Question 7

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

Accepted Answer

A)  Ensuring that customers find its software simpler and more convenient to use than that of Coral 
B)  Keeping the initial cost of its software higher than that of Coral's 
C)  Keeping the prices of the complements required for its software higher than that set by Coral 
D)  Ensuring that fewer complementary products are available for its products in comparison to that for the products of Coral 
A)  Ensuring that customers find its software simpler and more convenient to use than that of Coral 
B)  Keeping the initial cost of its software higher than that of Coral's 
C)  Keeping the prices of the complements required for its software higher than that set by Coral 
D)  Ensuring that fewer complementary products are available for its products in comparison to that for the products of Coral

Question 8

New innovations typically tend to:

Accepted Answer

A)  be adopted very slowly at first. 
B)  eliminate incumbent inertia for late entrants. 
C)  eliminate monopoly rents when they are first introduced. 
D)  reduce the effectiveness of future enabling technologies. 
A)  be adopted very slowly at first. 
B)  eliminate incumbent inertia for late entrants. 
C)  eliminate monopoly rents when they are first introduced. 
D)  reduce the effectiveness of future enabling technologies.

Question 9

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

Accepted Answer

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

Question 10

Fashion Fair Corp.,the first mover in the "all-year discount" stores market,lost its market share to a late entrant,Brand Fair Inc.Brand Fair operates its discount stores solely through the Internet,which saves a lot of expenses.Fashion Fair has been unable to replicate this strategy by adopting the online store business model due to its existing contracts with suppliers and heavy investment in retail stores.Fashion Fair has been experiencing:

Accepted Answer

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

Question 11

Since SmartShoe Inc.is the market leader in the gliding shoe market,it enjoys an excellent reputation.It is the pioneer of this new market and currently holds 40 percent market share.Now,SmartShoe wants to introduce a new range of orthopedic shoes.Discuss how its reputation might affect the new product's acceptance among distributors and consumers.

Accepted Answer

SmartShoe's excellent reputation will gi

Question 12

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

Accepted Answer

A)  Late entrants are the first to capture scarce resources. 
B)  Late entrants often do not have to invest in exploratory research. 
C)  Late entrants often are most likely to capitalize on monopoly rents. 
D)  Late entrants are unaffected by switching costs. 
A)  Late entrants are the first to capture scarce resources. 
B)  Late entrants often do not have to invest in exploratory research. 
C)  Late entrants often are most likely to capitalize on monopoly rents. 
D)  Late entrants are unaffected by switching costs.

Question 13

All pioneers face customer uncertainty.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

_____ require multiple stages of a new product development process to occur simultaneously.

Accepted Answer

A)  Incumbent development processes 
B)  Parallel development processes 
C)  Monopoly development processes 
D)  Slow-cycle development processes 
A)  Incumbent development processes 
B)  Parallel development processes 
C)  Monopoly development processes 
D)  Slow-cycle development processes

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

Other things being equal,an entrant with a strong reputation can attract adoptions earlier than entrants without strong reputations.

Which of the following statements is true of a firm entering a market too early?

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

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

Component technologies that are necessary for the performance or desirability of a given innovation are referred to as _____.

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

New innovations typically tend to:

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

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

All pioneers face customer uncertainty.

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

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

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:

_____ require multiple stages of a new product development process to occur simultaneously.

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

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

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

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

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

Other things being equal,an entrant with a strong reputation can attract adoptions earlier than entrants without strong reputations.

Which of the following statements is true of a firm entering a market too early?

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

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

Component technologies that are necessary for the performance or desirability of a given innovation are referred to as _____.

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

New innovations typically tend to:

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

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

All pioneers face customer uncertainty.

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

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

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:

_____ require multiple stages of a new product development process to occur simultaneously.

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

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

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

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