Neon IncIs an Electronics Manufacturing Company

question 48

Multiple Choice

Neon Inc.is an electronics manufacturing company.It has adopted a dominant design for its television audio speakers.Which of the following is the firm most likely to experience,as a result of this decision?

• A) Neon Inc. will have to invest heavily in R&D to come up with new designs for the audio speakers.
• B) Neon Inc. will face increasing returns to adoption.
• C) Neon Inc. will have reduced opportunities to develop complementary assets.
• D) The design adopted by Neon Inc. will be unpopular among most of the other manufacturers.

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Definitions:

Familiar Task

An activity or job that an individual has experience with and can perform with ease due to previous exposure or practice.

Positive Reference Group

A group that individuals admire and wish to be like or be associated with, influencing their behavior and attitudes positively.

Weight-of-numbers Bias

A cognitive bias where the sheer amount of information or data points available influences the perception of an argument's strength.

Minority Influence

Social influence processes whereby numerical or power minorities change the attitudes of the majority.