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:

Nature Of Attention

The aspect of cognitive processing that allows for focus on specific stimuli while ignoring others.

Shadowing Performance

The process of mimicking verbal material immediately as it is heard, a method used to explore the mechanisms of auditory attention and speech processing.

Treisman's Experiment

An experiment by Anne Treisman that demonstrates the role of attention in the perception of objects, highlighting how the brain integrates information from different visual features.

Broadbent's Model

A theory of attention that proposes that information is filtered at an early stage of perception, allowing only a subset of stimuli to be processed in detail.