Ideally, Before a New Product or Service Is Developed, a Firm

question 173

Multiple Choice

Ideally, before a new product or service is developed, a firm should have a precise ________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

• A) formula
• B) contract
• C) modus operandi
• D) protocol
• E) methodology

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Definitions:

Substitute Products

Goods or services that can be used in place of one another, where the increase in price of one leads to an increase in demand for the other.

Total Utility

The total amount of satisfaction derived from the consumption of a single product or a combination of products.

Marginal Utility

The additional satisfaction or benefit obtained from consuming one more unit of a good or service.

Consumer's Income

The total amount of income a person earns from work, investments, and other sources, influencing their purchasing power and demand for goods.