Which of the following is true of the idea screening phase of the new product development process?
A)New product ideas are not eliminated merely because they are outside the fields of a firm's interest in this stage.
B)Lack of technology and resources is often not a useful reason to discount new product ideas in this stage.
C)A firm needs to consider three categories of risk and its associated risk tolerance in this stage prior to reaching a decision.
D)Unlike the idea generation stage,this stage is not involved in expanding viable ideas into full product concepts.

Question

Quizplus · Accepted Answer

During the idea screening phase, a firm needs to consider three categories of risk: market risk, technology risk, and strategic risk, and evaluate its associated risk tolerance before making a decision. A lack of technology and resources can be a valid reason to discount new product ideas at this stage, and ideas may be eliminated if they do not fit within the firm's interests or if they lack potential profitability. Additionally, this stage is not involved in expanding viable ideas into full product concepts, as that is the focus of the concept development stage.

Which of the Following Is True of the Idea Screening