Deck 12: Technical Standards

Question 1

Technical standards are specifications to ensure that different components of the same system are compatible.

Answer 1

True

Question 2

In computers, different standards are in place for hardware, printers, software, memory chips, and peripheral devices produced by different companies.

Answer 2

False

Question 3

Many argue that the all-steel body in automobiles emerged as a dominant design out of chance occurrence.

Answer 3

True

Question 4

The government can influence the adoption of technical standards by becoming an early adopter and creating a large installed base for a particular variant.

Question 5

The best technology usually becomes the industry standard.

Question 6

The QWERTY keyboard became the industry standard because it was the best technology.

Question 7

Because systemic products are composed of components that need to be used with other components, having a common standard is important in ensuring that components produced by different companies can be used together.

Question 8

Standardization enhances customer adoption because it hinders the creation of complementary products.

Question 9

Where technical standards exist, your company will have a tremendous advantage and the potential to earn high profits if your proprietary technology is the industry standard.

Question 10

One way to enhance your chances of winning a standards battle is to make your product backward compatible.

Question 11

It is possible to manage customer expectations by making pronouncements about the size of your installed base.

Question 12

An advantage associated with preannouncements is that they provide information to competitors who may accelerate their development of competing products.

Question 13

You would be better off if you can make your technology work equally well with multiple standards so that your firm will not be greatly disadvantaged if one standard emerges rather than another.

Question 14

If you lose a standards battle, your only real option is to exit the market.

Question 15

If you lose a standards battle and conform to the industry standard you could benefit by having a larger target market.

Question 16

If the market is young and most of the customers are in the late majority, then you should differentiate your product form existing technical standards.

Question 17

To increase your customers' switching costs and reduce their likelihood of changing suppliers, you could make your products or services incompatible with the alternatives offered by your competitors.

Question 18

An open standard is one in which specifications are know by other companies.

Question 19

Using a closed standard demonstrates to your competitors how your technology works, making it easier for them to imitate it.

Question 20

Nonproprietary open standards may benefit companies by making their products better for customers.

Question 21

With an open standard you incur the risk that licensees might change your technology in a way that makes it unnecessary for them to pay you royalties.

Question 22

Introduction of the DIVX by Circuit City was done as an attempt to:

A) supplement the DVD format
B) enhance the DVD format
C) establish a new standard
D) all of the above

Question 23

What are the specifications to ensure that different components of the same system are compatible called?

A) installed base
B) component
C) condition
D) requirement

Question 24

What was the computer industry attempting to do when they worked toward having hardware, printers, software, memory chips and peripheral devices produced by different companies all work together?

A) develop an installed base
B) develop standards
C) develop components
D) develop requirements

Question 25

Which element of house wiring complies with a technical standard?

A) voltage
B) amperage
C) the electrical outlet
D) all of the above

Question 26

What is a reason why technical standards and dominant designs develop?

A) chance occurrence
B) the nature of technology
C) government imposition
D) all of the above

Question 27

Which mechanism for the development of a technical standard was in effect when the International Telecommunication Union created the H.320 standard for video conferencing?

A) government imposition
B) government involvement
C) trade association involvement
D) competition between firms

Question 28

Which mechanism for the development of a technical standard was in effect when nylon and polyester emerged as the dominant designs in synthetic fiber?

A) nature of technology
B) chance occurrence
C) government imposition
D) competition between firms

Question 29

What mechanism for the development of a technical standard was in effect in the recent battle over developing a standard for HDTV?

A) nature of technology
B) government involvement
C) competition between firms
D) government imposition

Question 30

Which mechanism for the development of a technical standard was in effect when the all-steel body in automobiles emerged as the dominant design?

A) government imposition
B) competition between firms
C) trade association involvement
D) chance occurrence

Question 31

Which mechanism for the development of a technical standard was in effect when the European Union adopted the GSM wireless telephony standard?

A) nature of technology
B) competition between firms
C) government imposition
D) trade association involvement

Question 32

Which mechanism for the development of a technical standard was in effect when Sony and Philips worked together on developing a standard for compact disk technology?

A) nature of technology
B) competition between firms
C) chance occurrence
D) cooperation between firms

Question 33

What is a reason why the best technology does not always become the industry standard?

A) government mandate
B) strategic actions of firms
C) social support for a particular alternative
D) all of the above

Question 34

Why was the QWERTY keyboard established as the standard for typewriters and computer keyboards?

A) installed base too large to change
B) government mandate
C) strategic actions of firms
D) agreement by standard setting bodies

Question 35

Why did the internal combustion engine become the standard for automobiles instead of the electric battery motor?

A) government mandate
B) social support
C) strategic actions of firms
D) agreement by standard setting bodies

Question 36

What is the most common way that industries converge on technically inferior alternatives?

A) natural workings of the market
B) social support
C) government mandate
D) strategic action of firms

Question 37

Why was the original adoption of high-definition DVDs slow?

A) technical difficulties
B) government regulation
C) battles over a common standard
D) all of the above

Question 38

Why are technical standards important to the customer adoption decision?

A) ensuring components produced by different companies are compatible
B) making many products more functional
C) facilitates the creation of complementary products
D) all of the above

Question 39

Why would you have an advantage in a market where you have a technical standard?

A) products that conform to the standard can be sold at a premium
B) suppliers have to conform to the standard
C) competitors will have to adopt your technology
D) all of the above

Question 40

What was occurring when railroads were trying to decide on the standard width of a railroad track?

A) backward compatibility
B) standards battle
C) cooperation between competing firms
D) customer adoption

Question 41

What can be done to win a standards battle?

A) gain the support of the producers of competitive products
B) make your product forward compatible
C) manage your customers' expectations
D) all of the above

Question 42

In the high-definition DVD battle, what were Sony and Toshiba trying to accomplish by gaining the support of the movie studios?

A) gaining the support of the producers of complementary products
B) making the product backward compatible
C) managing the customers' expectations
D) making product preannouncements

Question 43

In the high-definition DVD battle, what were Sony and Toshiba trying to accomplish by having game manufacturers include their standard in the game consoles?

A) managing the customer's expectations
B) criticizing the competition
C) gaining the support of other complementary products
D) making the product backward compatible

Question 44

What are you attempting to accomplish when you introduce a product that also works with a previous generation of products?

A) manage customer expectations
B) make the product backward compatible
C) gain the support of complementary products
D) make product preannouncements

Question 45

What were Sega and Nintendo doing when, in the early 1990s, they each claimed to control over 60 percent of the market?

A) gaining the support of complementary products
B) managing customer expectations
C) criticizing the competition
D) all of the above

Question 46

How can preannouncements help to manage expectations?

A) convince competitors that they expedite the launch a competing product
B) discourage suppliers from attempting to form alliances with you
C) attempt to become the industry standard
D) all of the above

Question 47

What is a cost associated with preannouncements?

A) providing information to competitors
B) motivate customers to delay purchases of the company's existing products
C) undermine your customers trust
D) all of the above

Question 48

What was Thomas Edison attempting to do when he electrocuted a dog using George Westinghouse's electrical standard?

A) providing information to competitors
B) making product preannouncements
C) criticizing a competitor
D) making the product backward compatible

Question 49

Based on the advantages and disadvantages associated with standards battles, what should a company entering a newly developing industry do?

A) exert all efforts possible to win the standards war
B) concede to other companies if they are in an advantages
C) manage information to ensure victory of the standards war
D) hedge against the loss of a standards battle

Question 50

What is an option you have if you lose a standards battle?

A) exit the market
B) conform to the new standard
C) continue to produce your product with a different standard
D) all of these are options

Question 51

What is a likely outcome if you surrender a standards battle and conform to the standard?

A) lose all the capital, reputation, and learning that you have invested in the industry
B) your ability to differentiate your product will be enhanced
C) reduction in the size of your target market
D) improved ability to focus on a niche

Question 52

Based on the pros and cons of conforming to the industry standard, when should you not conform and focus on a niche?

A) if the market is mature and most customers are in the late majority
B) if the market is young and most customers are in the late majority
C) if the market is mature and most customers early adopters
D) if the market is young and most customers are early adopters

Question 53

Based on the pros and cons of conforming to the industry standard, when should you make your product compatible with the existing industry standard?

A) if the market is mature and most customers are in the late majority
B) if the market is young and most customers are in the late majority
C) if the market is mature and most customers are early adopters
D) if the market is young and most customers are early adopters

Question 54

Which strategy would likely help to defend your technology standard by increase your customer's switching costs?

A) make your product more attractive by focusing on one or two features
B) sign short-term contracts with producers of complementary products
C) make future generations of your product backward compatible with previous versions
D) make your product compatible with the alternatives offered by competitors

Question 55

At what level does business in the MP3 market compete?

A) business strategy
B) technology standard
C) operating efficiency
D) technical system

Question 56

What type of standard has specifications that are known by other companies?

A) technical
B) open
C) business
D) closed

Question 57

What type of standard has specifications that are not known by other companies?

A) technical
B) open
C) business
D) closed

Question 58

What is an advantage associated with closed systems?

A) make it easier for other companies to build complementary products
B) encourage other companies to adopt your technology
C) generate a large installed base very quickly
D) none of the above

Question 59

What is a risk associated with an open system?

A) risk that licensees might change your technology so it unnecessary for them to pay you royalties
B) demonstrates to your competitors how your technology works
C) make less money than if you had a closed system
D) all of the above

Question 60

What is one way a nonproprietary open system makes the product better for the customer?

A) does not allow companies to control quality or the development of the standard
B) do not require customers to pay royalties
C) does not provide strong incentives for companies to support their customers
D) opens up markets to competitors

Question 61

What is one way a nonproprietary open system creates strategic problems for providers?

A) customers are neutral
B) the products are easier to customize
C) do not provide strong incentives for companies to support their customers
D) do not require customers to pay royalties

Question 62

Define technical standards and explain why they are important in a wide variety of industries.

Question 63

Describe how technical standards and dominant designs develop in a variety of ways.

Question 64

Explain how it occurs that the technical standard is often inferior to the other alternative technologies available.

Question 65

Explain the relationship between technical standards and customer adoption in industries in which technical standards exist.

Question 66

Explain the various tactics that can be used to help win a standards battle.

Question 67

Describe the various strategies available if you lose a standards battle.

Question 68

Explain the different strategies that can be followed to defend a technological standard.

Question 69

Compare and contrast open versus closed standards. Explain the advantages and disadvantages of both types of standards