Being First to Initiate a Particular Strategic Move Can Have

question 44

Multiple Choice

Being first to initiate a particular strategic move can have a high payoff in all of the following EXCEPT when

• A) pioneering helps build up a firm's image and reputation and creates strong brand loyalty.
• B) buyers remain strongly loyal to pioneering firms because of incentives and switching costs barriers.
• C) there is a steep learning curve and when learning can be kept proprietary.
• D) moving first can constitute a preemptive strike, making imitation extra hard or unlikely.
• E) market uncertainties make it difficult to ascertain what will eventually succeed.

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Definitions:

States of Nature

Different hypothetical conditions or outcomes that could affect a decision in decision theory.

Lingerie Store

A commercial establishment that specializes in selling women's underwear, nightwear, and similar intimate apparel.

Rollback Technique

A method used in recovery and error-checking that involves reverting a system or process to a previous safe state.

Decision Tree

A graphical representation used in decision analysis to visually and explicitly represent decisions and decision making.