In Which of the Following Instances Are First-Mover Disadvantages Not

question 52

Multiple Choice

In which of the following instances are first-mover disadvantages not likely to arise?

• A) when the costs of pioneering are much higher than being a follower and only negligible buyer loyalty or cost savings accrue to the pioneer
• B) when rivals are employing offensive strategies rather than defensive strategies
• C) when the products of an innovator are somewhat primitive and do not live up to buyer expectations
• D) when buyers are skeptical about the benefits of a new technology or product being pioneered by a first mover
• E) when rapid market evolution (due to fast-paced changes in technology or buyer preferences) gives fast followers and maybe even cautious late movers the opening to leapfrog a first mover's products with more attractive next-version products

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Definitions:

Differential Analysis

The process of comparing the differences in cost and revenue between different business decisions or scenarios to help in decision making.

Differential Analysis

The process of comparing the costs and benefits of different business decisions or alternatives.

Markup Percentage

The percentage added to the cost of goods to cover overhead and profit, representing the difference between the cost of the product and its selling price.

Product Cost

The total of costs directly attributed to the production of a product, including materials, labor, and manufacturing overhead.