chap 7 quiz 2
Researchers at Games First Inc. spent several months coming up with a fun game for toddlers that incorporates a new idea in preschool education. This scenario describes step _____ of the innovation process.
2
How is the early majority section of consumers different from the late majority section?
Although the early majority is confident in their ability to master a new technology, the late majority is not.
Which of the following statements is true of a disruptive innovation?
It invades the market from the bottom up, by first capturing the low end
Which of the following scenarios would be characteristic of an entrepreneur?
Rachel implemented a new and more efficient way to produce pottery.
Which of the following reasons led to the launch of Procter & Gamble's "Connect + Develop," a web-based interface that connects the company's internal-innovation capability with the distributed knowledge in the global community?
The company was no longer able to generate adequate growth through closed innovation.
Globe Source Inc. is a consumer electronics company that follows an open innovation model. Which of the following can be concluded about this firm?
The firm will buy others' intellectual property whenever it advances its own business model
Which of the following is one of the reasons that led to CNN, an innovator, losing its leadership position in the 24-hour cable news industry?
The second movers imitated CNN's incremental innovation to continuously improve their offering.
Why is it easier for new entrants to involve in radical innovations when compared to incumbent firms?
Unlike incumbent firms, new entrants do not have formal organizational structures and processes.
which of the following statements accurately brings out the difference between closed innovation and open innovation?
While open innovation focuses on building an effective business model to commercialize R&D, closed innovation focuses on being first to market.
A new product often has a high price when it is launched because of a
a large investment in designing a product while producing small quantities
Which of the following scenarios would typically happen in a firm that uses open innovation?
a meeting with professors at a university to get ideas for product
Which of the following would be the result of product innovation?
an inexpensive, high-quality refrigerator
It is important for a firm to win over the early majority section of the market to ensure the commercial success of an innovation because
enter into the market in large numbers, creating a herding effect
Intel's Celeron chip and Atom chip are initiatives to
guard the company against disruptive innovation by protecting the low end of the market.
A factor favoring the success of disruptive innovation is that
incumbent firms are slow to change
While the personal computer industry is flooded and growing with laptops and tablets, Ivan recently bought a desktop, his first personal computer. He realized that a computer at home would be helpful for his children for their school projects, and he could use it to maintain the simple accounts of his plumbing business. Which of the following customer segments does Ivan best represent?
laggards
Incumbent firms favor incremental innovation over radical innovation because
radical innovation will disturb the existing power distribution within the firms.
EasyOpen Inc. has entered a stage in which the demand for their innovative electric can openers has declined. Now most customers are buying replacement parts or buying their second can opener from the firm. What stage in the industry life cycle does this scenario describe?
shakeout stage
When does a firm fall into the large competitive chasm between early adopters and early majority?
when it fails to successfully launch a mass-market version of its product
General Electric (GE) disrupted itself in the healthcare industry by
introducing inexpensive and smaller diagnostic devices in developing countries.
