A Product-Development Team Has Been Examining a Proposed New Product

question 39

Multiple Choice

A product-development team has been examining a proposed new product intensively for six months. They have decided that although the product is unique and technologically-advanced, the cost of production will exceed the price that the consumer would be willing to pay. At this point, the product development team should

• A) engage in creative destruction.
• B) recommend that the product be sold at a loss in order to create a new market.
• C) turn over the product evaluation to a new product-development team which may have more passion for the product.
• D) recommend that the project be set aside.

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Definitions:

ANOVA

Analysis of Variance (ANOVA) is a statistical method used to test differences between two or more means by analyzing variances.

Chi-square Test

A statistical test used to determine the significance of the association between categorical variables.

Unequally

In a manner that is not equal or identical in status, amount, or value.

Respondents

Individuals who provide data or responses to a survey or questionnaire.