First-Mover Advantages Are Unlikely to Be Present in Which One

question 61

Multiple Choice

First-mover advantages are unlikely to be present in which one of the following instances?

• A) when pioneering helps build a firm's image and reputation with buyers
• B) when first-time customers remain strongly loyal to pioneering firms in making repeat purchases
• C) when early commitments to new technologies,new-style components,new or emerging distribution channels,and so on can produce an absolute cost advantage over rivals
• D) when moving first can constitute a preemptive strike,making imitation extra hard or unlikely
• E) when rapid market evolution (due to fast-paced changes in technology or buyer preferences) presents opportunities to leapfrog a first-mover's products with more attractive next-version products

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Definitions:

Expenses

Costs incurred by a business in its operational activities.

Profitability Analysis

Marketing analytics tool that measures how much profit the firm generates, as well as how much profit certain aspects of the firm, including regions, channels, and customer segments, contribute.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a business.

Revenue Analysis

A process of reviewing and evaluating the income generated from operations, usually to understand financial performance and identify improvement areas.