The hierarchy of effects is one of the methods used for identifying potential problems in the launch management of a new product. Which of the following statements is true regarding this method?
A) It tries to predict competitors' reactions after they have heard of the new product.
B) It involves going through all the data accumulated in the new product's file.
C) It starts with a satisfied customer and works back from that satisfaction to identify the effects necessary to produce it.
D) It involves asking channel partners to predict the potential problems and their effects on the launch of the new product.

Question

Quizplus · Accepted Answer

The hierarchy of effects starts with a satisfied customer and works back from that satisfaction to identify the effects necessary to produce it. It is a way to identify potential problems in the launch management of a new product. Option A is incorrect as it is related to predicting competitors' reactions rather than identifying potential problems. Option B is incorrect as it is related to going through all the data accumulated in the new product's file rather than identifying potential problems. Option D is also incorrect as it involves channel partners' prediction of potential problems and their effects rather than identifying potential problems itself.

The Hierarchy of Effects Is One of the Methods Used