Question 1

In the video game console industry,Magnavox was the first mover but was not the winner.Atari and Nintendo came up with their respective gaming consoles soon afterwards.They were

Accepted Answer

A)  also first movers. 
B)  early movers 
C)  laggards. 
D)  late movers.

Question 2

In which of the following scenarios would an earlier entry into the market be beneficial?

Accepted Answer

A)  A firm that has developed a new line of video games for which the required graphics card is yet to become mainstream. 
B)  A cell phone manufacturer who has developed a touch phone without conducting any market research. 
C)  A firm that has developed a new line of vacuum cleaners that can be preprogrammed to function automatically without any user involvement. 
D)  A firm that has patented its technological innovation.

Question 3

Acme Products was late to enter the desk height adjuster market.However,Acme has vast financial resources compared to the 2 other small companies in this new market.Which of the following best represents Acme's chances of success?

Accepted Answer

A)  Slim because it is a late entrant into the market. 
B)  Excellent because it can outspend the other companies in further development and marketing of the product. 
C)  Acme's chances of success cannot be determined. 
D)  Acme's chances of success are exactly equal to those of the other companies.

Question 4

When S.C.Johnson Company came up with a new hair care product that repaired split ends,it spent money on market education and provided incentives to wholesalers and retailers to sell the product.This strategy will _____ the early adoption of this innovative product.

Accepted Answer

A)  hinder 
B)  have no effect on 
C)  accelerate 
D)  delay

Question 5

Even though the technology for high definition DVD players is clearly superior to the old generation,it requires that users buy high definition television sets.This factor might reduce the adoption of new DVD players.

Accepted Answer

A) True 
 B)False

Question 6

If you enter the market too early,the risk is that

Accepted Answer

A)  the technology (or complements) will be underdeveloped. 
B)  legal aspects related to the product do not exist. 
C)  you will have large cash flow initially but it will deplete faster. 
D)  consumers will lock you out of the market.

Question 7

A firm with fast-cycle development processes has more timing of entry options.

Accepted Answer

A) True 
 B)False

Question 8

When McDonalds first moved into Russia,it had to teach farmers how to grow better potatoes and cattle,and bakers how to make hamburger buns.This is an example of

Accepted Answer

A)  corporate social responsibility. 
B)  an undeveloped supply channel. 
C)  development partnerships. 
D)  late-mover manipulation.

Question 9

If you are a first mover in the market of a new technology,you may find that your product offerings will have to be modified as consumers let their preferences be known.

Accepted Answer

A) True 
 B)False

Question 10

If you are certain of customer preferences and needs,you can enter the market earlier than if customer needs were unknown.

Accepted Answer

A) True 
 B)False

Question 11

TechSense was the first company to introduce a GPS-enabled shoe into the market and shoe sales are rapidly increasing.Which of the following is most likely to be true for TechSense?

Accepted Answer

A)  TechSense has incurred significant research and development expenses. 
B)  Consumers will be able to change to a competitor's product relatively easily. 
C)  TechSense's product is a perfect match with customer requirements. 
D)  Complementary goods producers are aplenty.

Question 12

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

Accepted Answer

A)  has the opportunity to earn licensing royalties. 
B)  can yield sustained monopoly rents. 
C)  has lower bargaining power. 
D)  is more susceptible to incumbent inertia.

Question 13

Late entrants usually enter the market only once the product has been adopted by the
mass market.

Accepted Answer

A) True 
 B)False

Question 14

In the personal computer operating system market Microsoft,who was a(n)_____ became the winner in the market place.

Accepted Answer

A)  first mover 
B)  late mover 
C)  follower 
D)  laggard

Question 15

Although other companies in the gliding shoe market have come out with hydrogen based power units,the first company in this market,GlideShoe is sticking with the fossil fuel power units.This is likely an example of incumbent inertia.

Accepted Answer

A) True 
 B)False

Question 16

Jackson Laboratories has come up with a new diabetic blood sugar monitoring device that does not require patients to prick their fingers.It has determined that this new technology is likely to quickly become the dominant method used by diabetics and will replace the old blood sugar monitoring devices Jackson currently sells.Hence,Jackson should enter the market quickly.

Accepted Answer

A) True 
 B)False

Question 17

Apex is the leader in the shoe glider market while Summit is a new startup company.Both have just released new generation shoe gliders.Which entry is likely to be adopted more quickly?

Accepted Answer

A)  Apex 
B)  Summit 
C)  Both will be adopted at the same rate 
D)  Neither

Question 18

If a firm intends to refine an earlier entrant's technology and beat the earlier entrant to market with a new version of this technology,it must have enabling technologies.

Accepted Answer

A) True 
 B)False

Question 19

Lee Peterson has invented a new product that detects water leaks due to broken pipes and sends out an alarm similar to a smoke alarm.However,Lee has very little personal money to invest in this new product.He finally raised enough money to enter the market and began to experience some success.The product was not patentable because it was too similar to other existing technologies.Major corporations saw his success and have now entered the market with competing products.What will be the probable destiny of Lee Peterson's company?

Accepted Answer

The answer of Lee Peterson has invented a new product...

Question 20

For a very new product technology,market research may be of significant help.

Accepted Answer

A) True 
 B)False

Exam 5: Timing of Entry Part Two Formulating Technological Innovation Strategy

In the video game console industry,Magnavox was the first mover but was not the winner.Atari and Nintendo came up with their respective gaming consoles soon afterwards.They were

In which of the following scenarios would an earlier entry into the market be beneficial?

Acme Products was late to enter the desk height adjuster market.However,Acme has vast financial resources compared to the 2 other small companies in this new market.Which of the following best represents Acme's chances of success?

When S.C.Johnson Company came up with a new hair care product that repaired split ends,it spent money on market education and provided incentives to wholesalers and retailers to sell the product.This strategy will _____ the early adoption of this innovative product.

Even though the technology for high definition DVD players is clearly superior to the old generation,it requires that users buy high definition television sets.This factor might reduce the adoption of new DVD players.

If you enter the market too early,the risk is that

A firm with fast-cycle development processes has more timing of entry options.

When McDonalds first moved into Russia,it had to teach farmers how to grow better potatoes and cattle,and bakers how to make hamburger buns.This is an example of

If you are a first mover in the market of a new technology,you may find that your product offerings will have to be modified as consumers let their preferences be known.

If you are certain of customer preferences and needs,you can enter the market earlier than if customer needs were unknown.

TechSense was the first company to introduce a GPS-enabled shoe into the market and shoe sales are rapidly increasing.Which of the following is most likely to be true for TechSense?

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

Late entrants usually enter the market only once the product has been adopted by the mass market.

In the personal computer operating system market Microsoft,who was a(n) _____ became the winner in the market place.

Although other companies in the gliding shoe market have come out with hydrogen based power units,the first company in this market,GlideShoe is sticking with the fossil fuel power units.This is likely an example of incumbent inertia.

Apex is the leader in the shoe glider market while Summit is a new startup company.Both have just released new generation shoe gliders.Which entry is likely to be adopted more quickly?

If a firm intends to refine an earlier entrant's technology and beat the earlier entrant to market with a new version of this technology,it must have enabling technologies.

For a very new product technology,market research may be of significant help.