A New-Product or Service Protocol Is

question 127

Multiple Choice

A new-product or service protocol is

• A) the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.
• B) a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.
• C) maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).
• D) a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.
• E) the raw unwritten ideas to produce a single commercially successful new product.

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Definitions:

Federal Trade Commission

A U.S. federal agency established in 1914 to promote consumer protection and the elimination and prevention of anticompetitive business practices.

Legal Cartel Theory

A concept where a group of firms or entities legally agree to control production, pricing, or marketing of goods and services to dominate a market.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicative of cost per unit.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than letting them be determined naturally by the market.