Firms that launch new-to-the-world products into the market incur a significantly lower long-term survival rate than those that enter the market later.

Question

Quizplus · Accepted Answer

This statement is true. Research has shown that firms that introduce new-to-the-world products into the market have a survival rate of only 40% after five years, compared to a survival rate of 64% for firms that enter the market later with similar products. The high failure rate is due to the high level of uncertainty and risk involved in creating a new market and educating consumers about a new product.

Firms That Launch New-To-The-World Products into the Market Incur a Significantly