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APPLICATION QUESTIONS Multiple Choice 111. Sony used to enjoy a three-year lead on new products. Today, Matsushita will copy the product within six months, leaving very little time for Sony to recoup its initial investments. This is an example of ________, one of the factors hindering new-product development. a. faster required development times b. capital shortages c. cost of development d. fragmented markets e. shorter product life cycles 112. When Scott Paper couldn’t compete with Fort Howard Paper Co. on price for the lucrative institutional toilet tissue market, it decided to differentiate by making larger rolls of paper and providing institutional customers with free dispensers. This is an example of ________. a. incremental innovation b. disruptive technology c. fragmented markets d. customer-driven engineering e. perceptual mapping 113. When the USB memory stick was introduced, it destroyed demand for floppy disks due to its vastly superior storage capacity, cheaper price per unit of storage capacity, and more convenient size, shape, and usage. This was an example of ________. a. incremental innovation b. disruptive technology c. fragmented markets d. customer-driven engineering e. perceptual mapping 114. Your firm has a new-product concept that seems to be a sure winner. You have estimated that the cost of development is $1 million, which the company does not have. As a result, this sure winner does not get out of the idea stage. This is an example of ________, which is one of the factors hindering new-product development. a. shortages of new ideas b. cost of development c. faster required development times d. corporate culture e. capital shortage 115. When the major car companies added drink holders to the design of their cars, they were practicing ________, where the firm attaches high importance to incorporating customer preferences in the final designs. a. listening skills b. marketing applications c. implementation of customer requests d. customer-driven engineering e. dual adaptation  Â