The profit-enhancing impact of product innovation tends to be on all of the following, except
A)the firm's revenues.
B)the buyers' utility derived from the product.
C)the firm's cost of production.
D)the attractiveness of the product to buyers.

Question

Quizplus · Accepted Answer

Product innovation typically aims to increase a firm's revenues, enhance the utility or satisfaction buyers derive from the product, and make the product more attractive to potential buyers. While it can sometimes lead to cost reductions through more efficient production methods or materials, the primary focus of product innovation is not necessarily on reducing the firm's cost of production.

The Profit-Enhancing Impact of Product Innovation Tends to Be on All