Ch.7 Questions

According to the crossing-the-chasm framework, the largest difference in consumer expectations is between...

early adopters and the early majority

Because she wants to introduce new production processes to the local restaurant industry, Lorraine is considered a(n)...

entrepreneur

The primary objective of firms during the introductory stage of the industry life cycle is to...

establish themselves as a market participant and position themselves for future growth.

At which stage of the industry life cycle does the size of the market expand rapidly?

growth

The innovation process is a four-step process that exists of idea, invention, innovation, and _____.

imitation

The _____ identifies how industries tend to develop and change over time.

industry life cycle

Which of the following allows a firm to redefine a market in its favor?

innovation

Which of the following are strategic options in the decline stage of the industry life cycle?

maintain consolidate exit harvest

In the _____ stage of the industry life cycle, a moderate amount of large firms compete for a share of a market that has reached its maximum size.

maturity

Most firms consider laggards to be...

not worth the effort of pursuing

Which of the following characteristics change as the industry life cycle progresses?

number and size of competitors type of customer type and level of innovation

Which of the following metrics are used by social entrepreneurs to evaluate performance?

people planet profits

Innovation can...

provide firms with a competitive advantage make existing products or businesses obsolete

A firm that successfully leverages network effects can...

push the industry into the growth stage

During the introductory stage of the industry life cycle, an innovator will likely devote most of their time, money, and effort to...

research and development

Applying concepts from strategic managements to the innovation process is known as...

strategic entrepreneurship

A significant difference between the early majority and the late majority is that...

the late majority is not confident in using new technologies

During the shakeout stage of the industry life cycle, profits degrade for...

all but the most efficient firms

Which of the following are ways in which standards can emerge?

through market competition by being imposed by gov or other agencies NOT: by having firms purchase a standard's license by letting consumers vote for their preferred standard

Which of the following are characteristics of the early majority?

weigh benefits and costs carefully rely on reviews by reputable magazines strong sense of practicality

Entrepreneurs innovate by...

commercializing new ideas and inventions.

First-mover disadvantages might include the need to ______

continuously perfect a product educated potential customers about the product's benefits find distribution channels

The negative effect of innovative ride-sharing services like Uber and Lyft on traditional taxi cab companies is an example of...

creative destruction

In the ______ stage of the industry life cycle, falling demand leads to a reduction in market size.

decline

It is challenging for firms to "cross the chasm" because...

each stage of the industry life cycle features a different group of customers with different preferences and demands

Which customer segment dominates the market growth stage of the industry life cycle?

early adopters