Which of the following observations about new product policy is true?
A) Policy-making criteria on new products should specify a working definition of the profit concept that is acceptable to top management.
B) There should be no specific time period for the product to become operational as this disturbs the new product development process.
C) When developing a new product policy, a company should focus more on consumer satisfaction levels than on the product's economic contribution.
D) A short-term focus is necessary for an effective new product policy in order to gain competitive advantage.

Question

Which of the following observations about new product policy is true? 
A) Policy-making criteria on new products should specify a working definition of the profit concept that is acceptable to top management.
B) There should be no specific time period for the product to become operational as this disturbs the new product development process.
C) When developing a new product policy, a company should focus more on consumer satisfaction levels than on the product's economic contribution.
D) A short-term focus is necessary for an effective new product policy in order to gain competitive advantage.

Quizplus · Accepted Answer

Policy-making criteria on new products should specify (1) a working definition of the profit concept acceptable to top management, (2) a minimum level or floor of profits, (3) the availability and cost of capital to develop a new product, and (4) a specified time period in which the new product must recoup its operating costs and begin contributing to profits.

Which of the Following Observations About New Product Policy Is