When Deciding on Which New Products to Develop, a Firm

question 59

Multiple Choice

When deciding on which new products to develop, a firm must devote people, time, and money to designing a new product. Because any firm has only limited resources, it

• A) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development.
• B) is not able to develop more than one new product at a time.
• C) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business.
• D) faces a trade-off because resources used to develop one product will not be available to develop another product.

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Definitions:

Work Outcomes

The results or outputs derived from an individual's or group's efforts at work, encompassing productivity, performance, and job satisfaction.

Vroom's Expectancy Theory

A motivational theory that suggests individuals are more likely to engage in activities if they believe their efforts will result in a desirable outcome.

Equation

A mathematical statement that asserts the equality of two expressions, usually connected by an equals sign.

Motivation

The force or process that initiates, guides, and maintains goal-oriented behaviors.