The business case analysis stage is important because ________.
A)Not a lot of money has been spent on the new product until this point of the new-product development process
B)It represents another low-cost analysis prior to developing a prototype product
C)The firm has already decided to take this product to the market and this analysis must confirm this action
D)A, B, and C
E)None of these

Question

Quizplus · Accepted Answer

As the product definition is developed and a tentative marketing strategy created, a critical "go-no go" decision is made before the next product development stage. At this point, the costs have been small relative to the cost of moving to full product development, market testing, and launch. There is a lot of pressure to get the decision right because a mistake is expensive. The business case analysis is an overall evaluation of a product and usually assesses the product's probability of success.

The Business Case Analysis Stage Is Important Because ________