Which of the Following Is Not an Accurate Characterization of the Idea

question 194

Multiple Choice

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

• A) The stage involves getting reactions from customers by way of concept testing.
• B) The stage evaluates the potential reaction of channel partners like wholesalers and retailers.
• C) The stage produces rough estimates of costs, sales, and profits.
• D) The stage introduces a prototype of the product.
• E) The stage involves an assessment of the assumptions managers are making about the new idea.

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Definitions:

Hicks Version

Refers to a model or approach in economics that elaborates on how consumer demand for goods is affected by changes in income and substitution effects.

Income and Substitution Effects

The changes in consumer behavior resulting from changes in relative prices and purchasing power, affecting choices between goods.

Utility Function

A mathematical representation of how a series of choices provides different levels of happiness or satisfaction to an individual or entity.

Budget Constraint

An economic model that represents all the combinations of goods and services that a consumer can afford, given their income and prices of goods.