A cross-functional product development team has been examining a proposed new product intensively for six months. The team has decided that although the product is unique and technologically-advanced, the cost of production will exceed the price that the consumer would be willing to pay. At this point, the product development team should
A) engage in creative destruction.
B) recommend that the product be sold at a loss in order to create a new market.
C) turn over the product evaluation to a new product-development team which may have more passion for the product.
D) recommend that the project be set aside.

Question

Quizplus · Accepted Answer

The best choice in this scenario is to recommend that the project be set aside. If the cost of production is higher than the price the consumer would be willing to pay, it would not make business sense to proceed with the project. It is important to consider the financial viability of the product before investing more time, effort, and resources into it, and it seems that the product development team has already evaluated the situation thoroughly. Pursuing the project further would only waste time and resources that could be allocated to other more promising projects.

A Cross-Functional Product Development Team Has Been Examining a Proposed