You Are in the New Product Development Process for a New

question 21

Multiple Choice

You are in the new product development process for a new consumer electronics product. So far, everything has been very positive, and you are starting to believe this product might be a blockbuster. As you prepare for the next stage of the process, you are concerned that your competition might try to "jam" your new product by increasing promotional activities for their own products. More importantly, you are concerned that these competitors might try to copy your product as you move into this next stage.
Which of the following stages of the new-product development process are you about to enter?

• A) Product development
• B) Test marketing
• C) Concept testing
• D) Commercialization
• E) Screening

---

Definitions:

Economic Profit

The variance between gross receipts and all outlays, including both tangible and intangible costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating, not including opportunity costs.

Implicit Costs

The opportunity costs that are not directly paid out but represent the loss of potential income from using resources in a certain way.

Opportunity Costs

Missing out on possible advantages from other choices by opting for a particular alternative.