Of the Four New Product Development Alternatives Discussed in the Text

question 16

Multiple Choice

Of the four new product development alternatives discussed in the text, which one involves an existing customer base and a totally new product?

• A) diversification
• B) product development
• C) market development
• D) market penetration

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Definitions:

Continuous Compounding

The process whereby interest earned is immediately reinvested to earn more interest, theoretically occurring an infinite number of times per period.

APR

Annual Percentage Rate, the annual rate charged for borrowing or earned through an investment, accounting for compounding.

EAR

Effective Annual Rate, the actual return on an investment when compounding interest is taken into account over a one-year period.

Geometric Mean Return

The geometric mean return, for investment performance, is the compound annual growth rate (CAGR) of an investment, calculated by taking the nth root of the total returns, where n represents the number of periods.