Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

In industries that have increasing returns to adoption due to network externalities,allowing competitors to get a head start in building an installed base is the safest strategy.

Accepted Answer

A) True 
 B)False

Question 3

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 4

When Fun Bun Inc.,an international fast-food chain,first moved into China,it had to teach farmers how to grow a particular variety of potatoes,and bakers had to be taught how to make hamburger buns.This is an example of:

Accepted Answer

A)  corporate social responsibility. 
B)  an undeveloped supply channel. 
C)  incumbent inertia. 
D)  monopoly rents. 
A)  corporate social responsibility. 
B)  an undeveloped supply channel. 
C)  incumbent inertia. 
D)  monopoly rents.

Question 5

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.

Question 6

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

Accepted Answer

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

Question 7

A disadvantage of using parallel development processes is that it greatly lengthens the new product development time.

Accepted Answer

A) True 
 B)False

Question 8

Late entrants typically bear the bulk of the research and development expenses for their product or service technologies.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true of first movers in comparison with 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 11

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

Accepted Answer

A) True 
 B)False

Question 12

Pioneer Athletics Inc.wants to provide better landing mats for gymnasts.It therefore asks its foam suppliers to use a new innovative process to manufacture higher quality,durable foam for use in its mats.This new process used to develop the foam represents a(n)_____ for Pioneer Athletics.

Accepted Answer

A)  network externality 
B)  preemption rent 
C)  enabling technology 
D)  incumbent rent 
A)  network externality 
B)  preemption rent 
C)  enabling technology 
D)  incumbent rent

Question 13

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 14

Why were other keyboards that claimed to be more efficient not able to replace the QWERTY keyboard? Explain how this illustrates the need to consider switching costs when introducing new technologies.

Accepted Answer

The QWERTY keyboard was initially introd

Question 15

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

Accepted Answer

A)  result in an inability to preemptively capture scarce assets. 
B)  enable it to yield sustained monopoly rents. 
C)  result in lower bargaining power over suppliers. 
D)  mean negligible research and development costs. 
A)  result in an inability to preemptively capture scarce assets. 
B)  enable it to yield sustained monopoly rents. 
C)  result in lower bargaining power over suppliers. 
D)  mean negligible research and development costs.

Question 16

Doven Inc.pioneered software development in the 1970s and introduced its range of office tools well ahead of its competitors.According to the classification scheme of entrants,Doven would be classified as a(n)_____.

Accepted Answer

A)  first mover 
B)  early follower 
C)  early leader 
D)  laggard 
A)  first mover 
B)  early follower 
C)  early leader 
D)  laggard

Question 17

Not all innovations require complementary goods.

Accepted Answer

A) True 
 B)False

Question 18

Alpen Inc.is a manufacturing firm that holds the patent for a new food processing machine that is considerably safer and more efficient than the others available in the market.Being the only firm that manufactures this product,Alpen charges a very high price for it.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 19

Loren has invented a product that detects water leakages caused by broken pipes and sends out an alarm similar to a smoke alarm.However,Loren has very little personal money to invest in this new product.Therefore,he borrows enough money from his friends to enter the market and begins to experience some success.The product is not patentable because it is too similar to other existing technologies.Major corporations have seen his success and have now entered the market with competing products.What will be the probable destiny of Loren's company?

Accepted Answer

Since Mr.Loren does not have significant

Question 20

Magnitude Inc.was the first company to introduce a video gaming 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 Corp.and Adventura Inc.came up with their respective gaming consoles and successfully established their products.In this scenario,Mantel and Adventura would be considered:

Accepted Answer

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

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

In industries that have increasing returns to adoption due to network externalities,allowing competitors to get a head start in building an installed base is the safest strategy.

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

When Fun Bun Inc.,an international fast-food chain,first moved into China,it had to teach farmers how to grow a particular variety of potatoes,and bakers had to be taught how to make hamburger buns.This is an example of:

Which of the following statements is true of customer preferences?

A disadvantage of using parallel development processes is that it greatly lengthens the new product development time.

Late entrants typically bear the bulk of the research and development expenses for their product or service technologies.

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

Which of the following statements is true of first movers in comparison with early followers and late entrants?

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

Pioneer Athletics Inc.wants to provide better landing mats for gymnasts.It therefore asks its foam suppliers to use a new innovative process to manufacture higher quality,durable foam for use in its mats.This new process used to develop the foam represents a(n)_____ for Pioneer Athletics.

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

Why were other keyboards that claimed to be more efficient not able to replace the QWERTY keyboard? Explain how this illustrates the need to consider switching costs when introducing new technologies.

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

Doven Inc.pioneered software development in the 1970s and introduced its range of office tools well ahead of its competitors.According to the classification scheme of entrants,Doven would be classified as a(n)_____.

Not all innovations require complementary goods.

Alpen Inc.is a manufacturing firm that holds the patent for a new food processing machine that is considerably safer and more efficient than the others available in the market.Being the only firm that manufactures this product,Alpen charges a very high price for it.This is referred to as _____.

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

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

In industries that have increasing returns to adoption due to network externalities,allowing competitors to get a head start in building an installed base is the safest strategy.

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

When Fun Bun Inc.,an international fast-food chain,first moved into China,it had to teach farmers how to grow a particular variety of potatoes,and bakers had to be taught how to make hamburger buns.This is an example of:

Which of the following statements is true of customer preferences?

A disadvantage of using parallel development processes is that it greatly lengthens the new product development time.

Late entrants typically bear the bulk of the research and development expenses for their product or service technologies.

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

Which of the following statements is true of first movers in comparison with early followers and late entrants?

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

Pioneer Athletics Inc.wants to provide better landing mats for gymnasts.It therefore asks its foam suppliers to use a new innovative process to manufacture higher quality,durable foam for use in its mats.This new process used to develop the foam represents a(n)_____ for Pioneer Athletics.

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

Why were other keyboards that claimed to be more efficient not able to replace the QWERTY keyboard? Explain how this illustrates the need to consider switching costs when introducing new technologies.

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

Doven Inc.pioneered software development in the 1970s and introduced its range of office tools well ahead of its competitors.According to the classification scheme of entrants,Doven would be classified as a(n)_____.

Not all innovations require complementary goods.

Alpen Inc.is a manufacturing firm that holds the patent for a new food processing machine that is considerably safer and more efficient than the others available in the market.Being the only firm that manufactures this product,Alpen charges a very high price for it.This is referred to as _____.

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