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Sample Quizzes from McGraw Hill

CHAPTER 2

1. What is the underlying process for innovation?a. Creativityb. Knowledgec. Developmentd. Agglomeration(Feedback: Page: 18)

2. Which of the following is not a function of creativity?a. Environmentb. Knowledgec. Intellectual abilityd. Attention to detail (Feedback: Page: 19)

3. Which of the following is not a characteristic of an inventor?a. They are curious and more interested in problems than solutions.b. They question the assumptions made in previous work in the field.c. They often have the sense that all knowledge is unified.d. They are specialists by nature. (Feedback: Page: 21)

4. Which of the following is the correct sequence of steps for the demand-pull approach to research anddevelopment?

a. Customers express an unmet need, R&D develops the product to meet that need, the product isproduced, and marketing promotes the product.

b. Scientific discovery leads to an invention, engineering designs the product, it is manufactured and thenmarketing promotes it.

c. R&D comes up with the product concept which is refined by engineering, manufacturing produces it,and marketing sells it.

d. Manufacturing sees a way to improve a product, R&D takes the suggestions and expands on it,engineering redesigns it, manufacturing implements the change, and marketing promotes it.

(Feedback: Page: 25)

5. Which of the following is an example of the cultural context of technology?a. The degree to which technology can be protected by patents or copyrightb. The availability of supplier and distributor marketsc. The population density of labor or customers d. The degree of market concentration(Feedback: Page: 34)

CHAPTER 31. The Acme Mattress Company discovered that it could more cheaply use polyurethane foam for its mattress than

traditional stuffing materials. This is an example of a(n) _____ innovation.

a. architecturalb. radicalc. component d. competence destroying

2. When handheld calculators replaced slide rulesa. the specific phase had been reached.b. a technological discontinuity had occurred

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c. technological continuity existed.d. an incremental change had occurred.

3. Which of the following statements is true regarding the use of the S-curve as a prescriptive tool?a. The performance limits of a technology can be predetermined.b. The shape of a technology's s-curve is absolute.c. Firms cannot control the shape of the s-curve.d. Unexpected market changes can shorten or extend the life cycle of a technology.

4. Donald is extremely adventurous when it comes to buying new gadgets and gizmos. He has sufficient financialresources and is at ease in complex and uncertain situations. According to this description, Donald is most likely

a(n)

a. early adopter.b. innovator. c. member of the early majority.d. member of the late majority.

5. During the era of incremental changea. firms attempt to simplify product design. b. firms invest in learning about alternative design architecture.c. firms are more capable of identifying and responding to major architectural innovation.d. firms focus on achieve breakthrough capabilities.

CHAPTER 4

1. The standard form of the learning curve is formulated as y = ax-b, where a is thea. number of direct labor hours required to produce the xth unit.b. number of direct labor hours required to produce the first unit.c. cumulative number of units produced.d. learning rate.

2. The availability of complementary goods and the size of the installed base area. negatively correlated.b. positively correlated. c. inversely proportional.d. unrelated.

3. Increasing returns isa. when gross returns from a product or process increases with the size of its installed base.b. when the rate of return from a product or process increases with the size of its installed base.c. when the rate return from a product or process increases as the cost per unit decreases.d. when gross returns from a product or process increases as the cost per unit decreases.

4.

Products that are not available in the market and that may not even exist but are advertised anyway are knownas

a. technological figments.b. works in progress.c. anticipatory innovations.d. vaporware.

5. Network externality benefitsa. refer to the value customers reap as a larger portion of the market adopts the same good.b. refer to the costs users bear as a larger portion of the market adopts the same good.c. refer to the value organizations generate as their product becomes the dominant design.

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d. refer to the value firms generate by advancing their technological platforms.CHAPTER 5

1. StarTech Enterprise was the first company to introduce a GPS-enabled shoe which was targeted at tourists,trekkers, and runners. The shoe was a best seller and, with no other competitors expected to the market,

StarTech was able to increase the price of the shoe without losing much of its customer base. This is an example

of

a. monopoly rents. b. product domination.c. enabling technologiesd. switching costs.

2. Julie currently drives an automatic car. Her husband Max, however, insists she change to a manual transmission(stick shift) car as it will help them reduce their fuel expenses. Julie is against the idea as it will take her a

considerable amount of time to learn how to drive a manual car. This is an example of

a. high switching costs.b. incumbent inertia.c. high monopoly costs.d. decreasing returns to adoption.

3. Sony Corporation has long been considered as the pioneer of portable music devices with the release of itshighly successful Sony Walkman. However, when consumer preferences switched to MP3 players, Sony was slow

to respond to this need resulting in loss of revenues and market share and ultimately culminating in the

domination of Apple's iPod. This is an example of

a. monopoly costs.b. incumbent inertia. c. high switching costs.d. enabling technologies.

4. If you enter the market too late, the risk is thata. the demand for the technology may exceed the supply.b. competitors control the market and make success practically impossible.c. you will face legal challenges of violating patent laws.d. no one will understand your technology.

5. The development cycle time for a new product can be shortened by usinga. combined qualitative techniques.b. parallel development processes.c. smaller development teams.d. a mechanistic organizational structure.

CHAPTER 6

1. Which of the following is an example of an exit barrier?a.

Government regulation

b. Brand loyaltyc. Advertisingd. Fixed capital investments

2. LeatherTown has recently opened up its own tannery which supplies the leather it uses in its wallets, bags, beltsand jackets. This is an example of

a. backward vertical integration. b. forward vertical integrationc. horizontal integration.d. horizontal expansion.

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3. Buyer bargaining power increases whena. there are few firms and several buyers.b. the firm's product is highly differentiated.c. the buyer's can threaten to vertically integrate backwards.d. the buyer faces switching costs.

4. Which of the following is a support activity according to Michael Porter's model of the value chain?a. Storage of raw materialsb. After-sales servicec. Recruitment d. Marketing

5. When the relationship between a resource and the outcome it produces is poorly understood, then it is said tobe

a. tacit.b. socially complex.c. causally ambiguous. d. tactically vague.