The Screening and Concept Testing Stage of the New-Product Development

question 147

Multiple Choice

The screening and concept testing stage of the new-product development process is used to:

• A) eliminate undesirable ideas and predict consumer acceptance
• B) refine the promotion campaign to be used with the new product
• C) determine the potential profits to be gained from the new product
• D) determine how long the test market should be run
• E) generate new-product ideas

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of the banking industry, and stability of the financial system.

Interest Rates

The cost of borrowing money or the return on invested capital, expressed as a percentage of the principal, affecting economic activity by influencing spending and saving behaviors.

Unemployment

The situation in which individuals who are capable of working and are seeking work are unable to find employment.

Marginal Propensity

The ratio of change in an economic variable (such as consumption) that occurs with a change in another variable (such as income).