Steve wanted to open a day care service facility for dogs.He estimated the costs involved in providing the services desired by dog owners.After extensive deliberation,Steve decided not to proceed with the plan as the cost of providing the services was too high compared to the rates dog owners would be willing to pay.Which of the following stages of the new-product development process has Steve used to arrive at this decision?
A)Idea screening
B)Business analysis
C)Idea generation
D)Test marketing

Question

Quizplus · Accepted Answer

Steve has used the business analysis stage to estimate the costs involved in providing the services desired by dog owners and compare them to the rates dog owners would be willing to pay. Based on this analysis, he has decided not to proceed with the plan. Therefore, option B (Business analysis) is the correct answer. Option A (Idea screening) is incorrect as Steve has already generated the idea to open a day care service facility for dogs. Option C (Idea generation) is also incorrect as Steve has already generated the idea and is in the process of analyzing its feasibility. Option D (Test marketing) is irrelevant as Steve has not yet launched the business and is still in the planning stage.

Steve Wanted to Open a Day Care Service Facility for Dogs.He