First-Mover Disadvantages (Or Late-Mover Advantages) Rarely Ever Arise When

question 105

Multiple Choice

First-mover disadvantages (or late-mover advantages) rarely ever arise when

• A) the costs of pioneering are much higher than being a follower and only negligible learning/experience curve benefits accrue to the pioneer.
• B) rapid market evolution gives fast followers an opening to leapfrog the pioneer with next-generation products of their own.
• C) the pioneer's products are somewhat primitive and do not live up to buyer expectations, allowing clever followers to win disenchanted buyers with better-performing products.
• D) the marketplace is skeptical about the benefits of a new technology or product being pioneered by a first-mover.
• E) the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment.

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Definitions:

Account Aggregation

A financial service that compiles information from various accounts, belonging to an individual or entity, into a single platform for easier management and analysis.

Financial Management

The strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institution; it also includes applying management principles to the financial assets of an organization.

Third-Party

An entity or individual not directly involved in a transaction or agreement but who may be affected by it or have an interest in it.

Honoring Checks

The act of accepting a check as payment and processing it as directed by the terms written on the check.