Late movers are defined as which of the following?

• A. Wait longer before acting, with no immediate actions.
• B. Respond to a competitive action a significant amount of time after the first mover's actions and the second mover's response.
• C. Be the first to act in the market.
• D. Always imitate the first mover.

Answer: (B)

Late movers act after others have taken steps, using the information from those moves to guide their own response. They intentionally wait for a significant period to observe the first mover’s actions and any subsequent moves before entering the market or countering. This timing strategy helps them learn from the market, reduce risk, and target gaps left by the pioneers.

That’s why the best answer describes reacting to a competitive action after the first mover’s move and after a second mover has already responded, with a noticeable delay. It captures the essence of late entry: responsiveness built on observing prior actions rather than rushing in or merely copying the leader.

The other descriptions don’t fit: waiting with no action implies no entry at all, which isn’t characteristic of late movers; being first to act is the opposite of late movers; and always imitating the first mover isn’t a defining trait of late movers, who may differentiate or respond strategically rather than copy.