The value of a technological innovation is mainly determined by what the technology can do.
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Question 2
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Firms should constantly focus on launching their products as early as possible.
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Question 3
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Cannibalization is the process by which a firm's financial resources are depleted by a single product offering.
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Question 4
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Opening a technology completely may result in a loss of compatibility and erosion of product quality.
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Question 5
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If Circle Systems decides to not make its new PDA backward compatible with programs written for the old PDA,its sales of PDA programs would be more profitable assuming consumers upgrade.
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Question 6
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If your objective is maximum market skimming,you will initially set a high price.
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Question 7
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If you are seeking to become the dominant design of a new technology,then penetration pricing will not work.
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Question 8
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Wholesalers sell goods to the public.
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Question 9
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When manufacturers bypass wholesalers and retailers to sell directly to end users it is called disintermediation.
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Question 10
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Online distribution is suitable when customers are disbursed and require extensive education about the product.
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Question 11
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Bundling products together can offer firms the advantage of switching costs.
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Question 12
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When a company asks another firm to develop a complementary good,one incentive that is often used is a guarantee that specific quantities of that complimentary good will be sold.
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Question 13
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To be effective,advertising for technology should always concentrate on the real message and not try to be entertaining.
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Question 14
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Radio advertising offers high sensory richness.
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Question 15
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Innovators are unwilling to accept incompleteness in products.
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Question 16
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Most firms find it easy to make the transition between successfully selling to early adopters and the early majority.
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Question 17
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In targeting the late majority and laggards,a company should emphasize the advanced technological features of the new product.
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Question 18
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If a company,through promotion,can create a large perceived installed base where one does not yet exist,it can lead to a large actual installed base.
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Question 19
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A "connector" can spark an information epidemic about a new product.
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Question 20
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A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.