The Purpose of the _____ Stage of the New Product

question 49

Multiple Choice

The purpose of the _____ stage of the new product development process of a company is to estimate costs and forecast sales for each idea to get a sense of the potential profit and of how the product might fit within the company's resources.

• A) development
• B) testing
• C) analysis
• D) idea screening

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Definitions:

Optimal Decision

The most efficient, profitable, or desirable decision given the available information, resources, and constraints.

Entree

The main dish of a meal.

Willingness-to-pay

The maximum amount an individual is prepared to expend on a good or service to procure it, reflecting the value the individual places on it.

Bundles

A grouping of products or services sold together as a single package for a combined price.