In Which of the Following Ways Is Product Development Different

question 63

Multiple Choice

In which of the following ways is product development different for services than for physical goods?

• A) Instead of gathering product ideas, the company goes immediately to the testing phase.
• B) Instead of screening ideas, the company tests all of them, since no prototype is needed.
• C) Instead of creating a prototype, the company develops a service process design.
• D) The business analysis step is not needed, since there are no production costs with services.
• E) The commercialization step is gradual for services, but rapid for physical goods.

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Definitions:

Intermediation Revenue Model

A business model where revenue is generated by facilitating transactions between two or more parties.

Real Estate Brokers

Professionals licensed to arrange real estate transactions, negotiating deals between buyers and sellers, often representing one of the parties.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period of time.

Operating Costs

Expenses associated with the routine functioning of a business or system.