CBA 469 Ch. 7 Quiz

Successfully transitioning from one stage of the industry life cycle to the next is referred to as _______.

crossing the chasm

Introducing a new technology to an existing market to better address consumer needs is known as _________ innovation.

disruptive

Which are the four steps of the innovation process?

- idea - innovation - imitation - invention

Which of the following are types of innovation?

- incremental - radical - disruptive - architectural

Which of the following are stages of the industry life cycle?

- maturity - introduction - decline - growth - shakeout

Innovation can _______.

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

Place the 4 steps of the innovation process in order from first to last.

1. Idea 2. Invention 3. Innovation 4. Imitation

process goes with which of the following: 1. biotechnology or 2. electric vehicle

1. biotechnology

product goes with which of the following: 1. biotechnology or 2. electric vehicle

2. electric vehicle

Which term is used for the customer segment in the introductory stage of the industry life cycle?

Technology enthusiasts

True or False: The chasm separating the early adopters from the early majority is the largest.

True

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

all but the most efficient firms

The four-step innovation process begins with ______.

an idea

What does the innovation process begin with?

an idea

Using known components, based on existing technologies, in a new configuration to create a new market is known as ______.

architectural innovation

The introductory stage of the industry life cycle is a ________ -intensive process.

capital

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

creative destruction

The customer segment known as ________ enjoy testing product prototypes and providing voluntary feedback that companies use to perfect their products.

technology enthusiasts

DaShawn likes to do a lot of research before he buys a new product and relies on the endorsement by others. He also wants to be sure the product will be practical. DaShawn is likely a member of which type of customer?

the early majority

Which of the following statements about platform businesses is true?

they can grow faster than pipeline businesses

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

early adopters

Taking on an economic risk in order to innovate is known as ______.

entrepreneurship

The process in which change agents create new products or processes at significant economic risk is known as ________.

entrepreneurship

In the maturity stage of the industry life cycle, industry growth ________.

flattens or even declines

The stage during which a new product has gained some acceptance, thus causing first-time buyers to eagerly acquire the product and accelerate demand, is the _______ stage.

growth

The type of innovation that focuses on improving an existing product by using existing technology and targeting existing markets is a(n) ______ innovation.

incremental

Which type of innovation applies to existing markets and existing technologies?

incremental

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

industry life cycle

When a company introduces a new product or process or business model with the intent of gaining a competitive advantage, that company is engaging in _________.

innovation

The second step of the four-step innovation process involves the transformation of an idea into a new product or process and is known as ____________

invention

Which of the following statements about platform business is true?

it creates value not only for the businesses but also for consumers

Which statement best describes the speed of innovation over the past hundred years?

it has accelerated dramatically

Which of the following statements about a business pipeline is true?

it is the traditional system of horizontal business organization

Which customer segment will only adopt a new product when it becomes absolutely necessary?

laggards

Most firms consider laggards to be __________.

not worth the effort of pursuing

A large incumbent firm that has established a number of formalized practices and procedures may have a difficult time producing radical innovations due to its _______.

organizational inertia

Educational organizations, such as Coursera, offer massive open online courses on the web as an alternative to traditional universities. This is an example of a(n) __________ innovation.

disruptive

New methods for producing existing products or delivering existing services are known as ________.

process innovations

A firm that successfully leverages network effects can ___.

push its industry into the growth stage

Benny's Baos had an edge in the market, but other companies began to enter the market. Benny is now losing customers even though he has launched an aggressive marketing campaign in an attempt to attract customers. Benny's Baos is likely in the ______ stage of the industry life cycle.

shakeout

The business structure that is linear and has producers at one end and consumers at the other is known as a(n) _________.

pipeline

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

research and development

During which stage does a standard develop?

growth

Which statement describes the long tail?

A large amount of revenue derived from a small number of units among almost unlimited choices

One of the largest customer segments of the market that includes customers who research the product, wait until new-product kinks have been resolved, and purchase from well-established companies is ______.

the late majority

Simone was the first among her peers to try the new unicorn hair dye. For months she was the only person with unicorn hair. After some time, though, the product became available everywhere, and nearly every other person began sporting unicorn hair, even Simone's mom. This situation describes which of the following?

the crossing-the-chasm framework

A significant difference between technology enthusiasts and early adopters is that _______.

early adopters are interested in how a new technology will improve their lives, rather than in the details of the technology itself

True or False: Platform businesses are organized as traditional linear pipelines.

false

What is the relationship between innovation and competitive advantage?

innovation is a powerful weapon for gaining and maintaining competitive advantage

Increases in the value of a product or service that result from a corresponding increase in the number of users are known as __________.

network effects

A company that resists change and sticks to formalized business processes and structures is likely experiencing ________.

organizational inertia

The business structure that is linear and has producers at one end and consumers at the other is known as a(n) _______.

pipeline

Demand declines most rapidly in the ______ stage of the industry life cycle.

decline

Which of the following are advantages of platform businesses compared to pipeline businesses?

- they scale efficiently by eliminating gatekeepers - they benefit from community feedback - they unlock new sources of value creation and supply

Which of the following are characteristics of the early majority?

- they weigh benefits and costs carefully - they have a strong sense of practicality

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

- through market competition - by being imposed by government or other agencies

During the growth stage of the industry life cycle, _______ increases rapidly.

demand

Which of the following is a primary factor in avoiding creative destruction?

innovation

In the _______ stage of the industry life cycle, a few number of large firms compete for a share of a market that has reached its maximum size.

maturity

Because it targeted a new market and used new technologies, the first mass-produced automobile is considered a(n) ______ innovation.

radical

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 decline stage of the industry life cycle, product innovation efforts ______.

come to a halt

An architectural innovation is __________.

a new product in which existing technologies are used in a novel way to create new markets

A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as _________.

the long tail

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

early adopters and the early majority

Which of the following is an example of invention?

Apple combining smart phone and wristwatch technologies to create the Apple Watch

What question is asked along the horizontal axis of the markets-and-technology framework?

Does the innovation build on existing technologies or create new ones?

Innovations that target NEW markets and represent a major break from existing technologies or ways of thinking, such as the digital camera, the touch-screen smart phone, or the decoding of the human genome, are examples of _________ innovations.

radical