In the Idea Generation Stage of the New-Product Development Process

question 177

Multiple Choice

In the idea generation stage of the new-product development process,

• A)many new ideas in business markets come from competitors.
• B)customers are given new products to test.
• C)a S.W.O.T.analysis helps evaluate new product ideas.
• D)a firm decides which ideas to pursue based on ROI screening.
• E)final ROI estimates are done.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

High-profitability

Refers to the ability of a business or investment to generate earnings significantly above its costs and expenses.

High-loyalty

A customer's strong allegiance or attachment to a brand, product, or company, often reflected in repeat business and positive word-of-mouth.

Communication Investments

The allocation of resources towards marketing communication channels aiming to promote a brand or product.