The Best Product Development Strategy for Most Firms Is to

question 143

Multiple Choice

The best product development strategy for most firms is to

• A) develop a small number of products that achieve market success and stick with them, because constantly changing old products (or introducing new ones) can confuse and frustrate customers.
• B) maintain one product line while adding regularly to that product line over time to sustain customer interest.
• C) constantly monitor consumer wants and needs and be willing to develop new products and adapt policies and services as those consumer needs begin to change.
• D) focus on the actual product or service and don't worry too much about factors such as image, price, and service.

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Definitions:

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Earnings Per Share

Earnings per share (EPS) is a company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Share Price

The present cost for purchasing or selling a single unit of a corporation's stock.

Constant-Growth DDM

A dividend discount model that assumes dividends grow at a constant rate in perpetuity, used to estimate the value of a stock.