MGT 491 Ch. 7 Practice Quiz

Which of the following scenarios would be characteristic of an entrepreneur? John implemented a new and more efficient way to produce pottery. Karen imitated a new, more efficient method of producing pottery. Hugo scaled back the production of pottery because it wasn't cost effective. Juliana used a proven marketing method to advertise her pottery.

John implemented a new and more efficient way to produce pottery.

Lauren is the CEO of TimeEx Inc. and is competing in an industry that is shifting due to disruptive innovation. Which of the following strategies should she consider to most appropriately respond to this disruptive innovation? Lauren should guard against the disruptive innovation by protecting the low end of the market. Lauran should stop allocating her firm's resources towards continually trying to innovate. Lauren should exit the industry before her firm files for bankruptcy. Lauren should focus on procuring the "laggards" in her industry.

Lauren should guard against the disruptive innovation by protecting the low end of the market.

Which of the following statements is true of the early majority section of consumers? They come into the market during the introduction stage. They are unaware that many hyped new product introductions will fade away. They weigh the benefits and costs carefully when adopting a new product. They make up the smallest market segment.

They weigh the benefits and costs carefully when adopting a new product.

Which of the following business models in the landscaping industry is likely to scale most efficiently? a company that offers three different bundles of services at a low, medium, and high price point depending on the level of care required by the customer a company that deploys a team of both skilled and unskilled landscapers to each customer's location regardless of their needs a company that charges the same hourly rate for landscaping services no matter what the situation requires a company that allows users of its website to schedule appointments with landscapers who specialize in the exact service required

a company that allows users of its website to schedule appointments with landscapers who specialize in the exact service required

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in incremental innovations. radical innovations. architectural innovations. disruptive innovations.

architectural innovations.

How has Apple been able to sustain its competitive advantage in the smartphone industry? by reducing its network effects by targeting its new products and services toward laggards by driving the price for the end user to zero by regularly introducing incremental improvements in its products

by regularly introducing incremental improvements in its products

A(n) ________ leverages new technologies to attack existing markets. disruptive innovation incremental innovation radical innovation architectural innovation

disruptive innovation

The customers entering the market in the growth stage are primarily technology enthusiasts. laggards. early adopters. late majority.

early adopters.

Fulcrum Feet is a manufacturer of athletic shoes. It has released an improved version of its premier running shoe in markets in which the company already operates. Which of the following types of innovations does this scenario best illustrate? radical innovation incremental innovation architectural innovation disruptive innovation

incremental innovation

Incumbent firms favor incremental innovation over radical innovation because their business decisions are independent of the other parties in their innovation ecosystem. radical innovation will disturb the existing power distribution within the firms. incumbent firms do not have formal organizational structures and processes like the way new entrants do. incremental innovations help firms sustain a permanent competitive advantage, whereas radical innovations only help gain a temporary advantage.

radical innovation will disturb the existing power distribution within the firms.