One Reason New Products Fail Is That Although Most Major

question 125

Multiple Choice

One reason new products fail is that although most major corporations use a formal decision-making process, sometimes they fail to critically evaluate the progress along the way. This is why many firms have a ________ to ensure that problems are corrected before proceeding to the next stage.

• A) written protocol
• B) Stage-Gate®process
• C) cross-functional team
• D) prototype test
• E) test market

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Definitions:

Dominant Firms

Companies that hold a major share of the market within their industry, exerting significant influence over market conditions, including prices and available supply.

New Products

Goods or services that have been recently developed, introduced to the market, or innovated to meet consumer needs.

Monopolistic Competition

A market structure in which many firms sell a differentiated product, entry is relatively easy, each firm has some control over its product price, and there is considerable nonprice competition.

Market Structure

The characteristics of an industry that define the likely behavior and performance of its firms. The primary characteristics are the number of firms in the industry, whether they are selling a differentiated product, the ease of entry, and how much control firms have over output prices. The most commonly discussed market structures are pure competition, monopolistic competition, oligopoly, pure monopoly, and monopsony.