Groupthink Occurs in a New Product Planning Process When

question 123

Multiple Choice

Groupthink occurs in a new product planning process when

• A) everyone has an opinion but no one is willing to take charge and guide the discussion.
• B) everyone has the same idea after using the brainstorming idea-generation technique.
• C) there is too much competition among marketing managers, so no one is willing to share his/her ideas.
• D) someone suspects a problem with a new product concept but is afraid to speak up because everyone else is so enthusiastic.
• E) top management wants the new product to go forward regardless of what anyone else thinks.

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Definitions:

Discount Rate

The rate of interest utilized within discounted cash flow methodology to calculate the current market value of future cash flows.

Net Present Value

The calculation of the current value of a series of future cash flows generated by an investment minus the initial capital cost.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Immediate Cash Outflow

Expenditures or payments that require immediate disbursement of cash from a business.