Why Are Customers Often Considered the Most Important Sources of New

question 23

Multiple Choice

Why are customers often considered the most important sources of new product ideas?

• A) Customers are close to the market and can pass along information about problems and new product possibilities.
• B) The company can analyze customer questions and complaints to find new products that better solve consumer problems.
• C) Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase.
• D) Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives.
• E) Customers estimate the minimum and maximum sales to assess the range of risk.

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Definitions:

Future Value

An asset or cash's value on a particular date in the future, matching the value of a specified amount now.

Interest Rate

The percentage of an amount of money charged for its use over a specified period.

Cash Flows

Refers to the total amount of money being transferred into and out of a business, especially affecting liquidity.

Years

Units of time equal to 365 days (or 366 days in a leap year), often used as a measure of time for financial, operational, or strategic planning.