In High-Technology Companies,there Is an Inordinate Focus on the Technology

question 61

Multiple Choice

In high-technology companies,there is an inordinate focus on the technology and product features rather than the customer and the benefits sought because:

• A)products sell better with focus on technology than with focus on customers.
• B)high-technology companies are usually founded and run by engineers.
• C)these companies invest huge amounts in innovation and have the ability to create entire product classes.
• D)they believe that customers are not aware of the technological innovations that they are capable of.

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Definitions:

Expected Rate of Return

The anticipated amount of profit or loss an investment is projected to generate, expressed as a percentage of the initial investment.

R&D Project

Research and Development project, which involves investigative activities that a business or organization undertakes with the intention of making a discovery that can either lead to the development of new products or procedures, or to improvement of existing products or procedures.

R&D Activity

The process of investigating new ideas and refining existing products or processes through research and development efforts.

Expected Returns

The anticipated return on an investment, calculated as an average of all possible returns weighted by their likelihood of occurrence.