Sample Questions Midterm

7/29/2019 Sample Questions Midterm

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Sample questions: Chapter 2True/False

1. The Small Business Technology Transfer (STTR) program facilitates partnershipsbetween small businesses and nonprofit research institutions.T

2. Technology clusters may span a region as narrow as a city or as wide as agroup of neighboring countries. T

3. A knowledge broker puts existing information to use in new and profitable ways. T

Multiple Choice

1. Which of the following products would be considered novel?

a. A detergent advertises that it can remove spots.b. A company announces it has produced a recreational hovercraft for sale in toystores. c. A cell phone company announces that it now offers text messaging.d. A college announces it will install artificial turf on its football field.

2. The president of Mountain Home University has been asked by her board oftrustees to set up a mechanism for the commercialization of technology developed atthe university. Such a mechanism is typically called a

a. business department.b. commercialization office.c. technology transfer office.d. royalty department.

3. Which of the following would notaffect geographic clustering of an industry?

a. The nature of the technology.

b. The degree to which communication and frequent interaction is required forknowledge sharing.c. Population density of labor.d. Profit margins of a technology firm.

Sample questions: Chapter 31.Radical innovation entails changing the overall design of the system or the waythat components interact with each other. F

2. In order to initiate a component innovation, a firm requires knowledge about the waycomponents link and integrate to form the whole system. F

3.A technologys S-curve of performance improvement is unrelated to its S-curveof diffusion. F

4. Moores Law refers to the rapidly increasing density of transistors on integratedcircuits that enabled microprocessor performance to increase dramatically. Thisincrease in density is expected to always continue at the same rate. F

5. In the era of ferment, firms focus on efficiency and market

penetration. F


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Multiple Choice:

1. Which of the following is most clearly an example of processinnovation?a. A pizza chain is able to develop a method that enables pizzas to be baked in 10minutes rather than the standard 20 minutes during the late 1980s.b. A potato chip company introduces a line of its potato chips with a new type ofseasoning.

c. A major motion picture studio releases a new 3D movie.d. A tire manufacturer develops a tire that re-inflates itself instantly when it ispunctured

2. If one plots a technologys S-curve with performance against time rather thaneffort, the resulting curvea. will be more accurate.b. may obscure the true relationship if effort is not constant over time.c. will be the same as if it were plotted the other way around.d. will not be representative of a technologys rate of performance improvement

oradoption.

3. Handheld calculators replaced slide rules. This is an example of a(n)innovation.a. logical extensionb. incrementalc. componentd. discontinuous

Sample questions: Chapter 4

1. The Buyer Utility Map developed by Kim and Mauborgne can be applied onlyto consumer products. F

2. If a new innovation has a significant advantage in functionality, its overall valuewill be greater than the incumbent standard. F

3. When comparing the value of a new technology to an existing technology, thetendency is to focus mainly on objective information. F

4. The value of a good to a user increases in a linear fashion.

F

Multiple choice:1. As complementary technologies develop for an innovation, that innovationwilla. become less attractive because the market is now too cluttered.b. become more attractive to other firms.c. decline in sales as buyers will not want to buy complementary technology due to thecost.

d. lose status because now it is easier to use.


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2. QwikEats is a fast food restaurant. It has recently opened a childrens play areawithin its premises that allows parents to dine in peace without having to worry abouttheir children. According to the Kim and Mauborgne model, QwikEats is offering the

utility levers during the stage of buyerexperience.a. environmental friendliness, purchase.b. risk, supplements.c. convenience, purchase.

d. simplicity, maintenance.

3. Disetronic is the insulin pump market for diabetics. If Disetronic raises the cost of thepumps to a very high rate and technology development of alternative insulin deliverysystems ceases,a. consumers might complain that the company has become too dominant.b. consumers will experience high network externality benefits.c. consumers will be happy because the insulin pump technology will continuallybe improved by Disetronic.d. consumers will stop purchasing insulin pumps from Disetronic.


Irrespective of whether the characteristics of a technology are imitable or not, a firstmover has an opportunity to build brand loyalty before the entry of other competitors.T

Once buyers have adopted a good, they can easily switch to anothergood. F

Although other companies in the gliding shoe market have come out with hydrogenbased power units, the first company in this market, GlideShoe is sticking with thefossil fuel power units. This is likely an example of incumbent inertia. T

Early followers typically bear the bulk of the research and developmentexpenses. F

Acme Products was late to enter the desk height adjuster market. However, Acme hasvast financial resources compared to the 2 other small companies in this new market.Which of the following best represents Acmes chances of success?

a. Slim because it is a late entrant into the market.

b. Excellent because it can outspend the other companies in further developmentand marketing of the product.

c. Acmes chances of success cannot be determined.d. Acmes chances of success are exactly equal to those of the othercompanies. Hint: Page: 102

When S.C. Johnson Company came up with a new hair care product that repaired splitends, it spent money on market education and provided incentives to wholesalers andretailers to sell the product. This strategy will the early adoption of this innovativeproduct.a. hinderb. have no effect onc. accelerate


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d. delay


A firms intellectual property can act as an entry barrier for other firms. T

According to Porters value chain model, firm infrastructure is a primary

activity. F

When the Arizona grocery store chain, Smittys, told Associated Grocers (AG) to givethema bigger price discount or they would open their own warehouse and distribution center,AGlistened because Smittys was a big customer. This is an example of the

a. bargaining power of buyers.b. bargaining power of sellers.c. threat of substitutes.d. technological substitution.

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Sample Questions Midterm