Each stage of the new product development process requires management to give its approval before moving forward. What does this ensure?
A) It ensures that the company doesn't create product diffusion.
B) It ensures that companies don't waste resources on marginal concepts.
C) It ensures that all products that actually make it through the process will be successful.
D) It ensures that employees have a stake in the process.

Question

Quizplus · Accepted Answer

Each stage of the new product development process requires management approval to ensure that the company does not waste resources on marginal concepts. It helps to identify and eliminate any potential unsuccessful products at an early stage, reducing costs and increasing the chances of success for the final product. The approval process is not a guarantee of success but rather a way to mitigate financial and resource risks. Options A, C, and D are incorrect because the approval process does not ensure the absence of product diffusion, success, or employee participation in the process.

Each Stage of the New Product Development Process Requires Management