An example of the theory of innovation in the previous question is the success that PayPal achieved in its early days by providing a convenient way for ____to accept payments. (BLJ, p. 159; Kindle, 2649) (Ch. 10—The Job to Be Done)

A. large e-Commerce merchants

B. large brick-and-mortar stores

C. small eBay sellers

D. small brick-and-mortar stores

BLJ argues that payment innovation is more difficult when it requires _____ adoption because in such markets ____. (p. 162; Kindle, 2685-2691) (Ch. 10—The Payments Innovation Challenge)

A. bilateral; two separate advertising campaigns are needed

B. bilateral; one side won’t get on board till it sees the other side getting on board

C. unilateral; there is less diversification of risk

D. unilateral; there is the only side that can be charged a fee

Which of the following are mentioned by BLJ as key requirements for success in payment innovation? (BLJ, pp. 172-173; Kindle, 2875-2893) (Achieving Success in Payment Innovation)

1. Figuring out how to scale up without sacrificing reliability.

2. Solving the chicken-and-egg problem.

3. Coping with state and federal regulations.

A. 1 and 2

B. 2 and 3

C. 1 and 3

D. 1, 2, and 3

Which of the following were strategies that PayPal used in its early days to reach critical mass? (p. 13)

1. Provide the payments service free.

2. Give a $10 bonus to new account holders for registering and linking a credit card to the account.

3. Advertise heavily to attract customers.

A. 1 and 2

B. 1 and 3

C. 2 and 3

D. 1, 2, and 3