Ideally, before a new product is developed, a firm should have a precise protocol, a statement that identifies (1) what the product will be and can do; (2) a well-defined target market; and (3)
A)a clear plan for product distribution.
B)an analysis of potential competitive products.
C)a precise budget of how much can be spent at each step of the process.
D)specific customers' needs, wants, and preferences.
E)clear financial goals and expectations.

Question

Quizplus · Accepted Answer

Knowing specific customers' needs, wants, and preferences is crucial for developing a product that will be successful in the market. Without this information, the product may not meet customers' expectations and may not sell well, ultimately leading to a loss for the firm. Choices A, B, C, and E are also important considerations when developing a new product, but they are not as critical as understanding customer needs.

Ideally, Before a New Product Is Developed, a Firm Should