Which of the following observations is true of new product policy?
A) Policy-making criteria on new products should specify a working definition of the profit concept that is acceptable to top management.
B) There should be no specific time period for the product to become operational as this disturbs the new product development process.
C) When developing a new product policy, a company should focus on consumer satisfaction levels rather than the product's economic contribution.
D) A short-term focus is sufficient for an effective new product policy in order to gain competitive advantage.

Question

Quizplus · Accepted Answer

A working definition of the profit concept is crucial for effective decision-making on new products. It helps to ensure that new products contribute to the overall profitability of the company. B is incorrect because there should be a specific timeline for the product to become operational to avoid delays and cost overruns. C is incorrect because while consumer satisfaction is important, it should be balanced against economic considerations. D is incorrect because a long-term focus is necessary to ensure that the new product is successful in the market.

Which of the Following Observations Is True of New Product