In a sequential new product development process, which of the following is true of the product development step?
A) Product development is usually followed by a business analysis of the product.
B) Product development involves introducing a product into realistic market settings.
C) Product development avoids testing products on actual customers due to liability concerns.
D) Product development is usually followed by test marketing.
E) Product development helps top management review profit projections.

Question

Quizplus · Accepted Answer

In a sequential new product development process, product development is usually followed by test marketing. This step involves introducing the product into realistic market settings and testing it on actual customers to gauge their consumer response and interest. Test marketing helps companies analyze the potential success of their products before fully launching them into the market. Business analysis and profit projections are typically done earlier in the process, while avoiding testing on actual customers is not a recommended practice in product development.

In a Sequential New Product Development Process, Which of the Following