MGT 4300 Chapter 7

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?

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

Innovation can ______.

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

Place the four steps of the innovation process in order from first to last. (From top to bottom)

1. idea 2. invention 3 innovation 4. imitation

Which statement describes the long tail?

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

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

All but the most efficient firms

Which of the following is an example of invention?

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

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

Crossing the chasm

Demand declines most rapidly in the _________ stage of the industry life cycle

Decline

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

Decline

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

Demand

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

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 segments dominates the market growth stage of the industry life cycle?

Early adopters

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

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

During which stage does a standard develop?

Growth

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

What is the relationship between innovation and competitive advantage?

Innovation is a powerful weapon for gaining and maintaining competitive advantage.

Creating new products out of new or existing ideas is known as _______________.

Invention

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

It has accelerated dramatically.

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

Which of the following statements about the maturity stage of the industry life cycle is true?

Only a few large firms remain

A firm that successfully leverages network effects can ___.

Push its industry into the growth stage

In which stage of the industry life cycle does competition become more intense, forcing weaker firms out of the industry?

Shakeout

An agreed-upon solution about a common set of engineering features and design choices is known as a __________

Standard

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

Technology enthusiasts

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

Technology enthusiasts

The shakeout stage of the industry life cycle is dominated by _______________.

The early majority

Industries often tend to follow a predictable industry life cycle.

True

The four-step innovation process begins with ______.

an idea

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

creative destruction

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

entrepreneurship

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

industry life style

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 are the four steps of the innovation process?

invention idea imitation innovation

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

the late majority is not confident in using new technologies

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

True or false: Innovation can create value for one firm while destroying value for another.

true