BNAD 303- Ch.12

Which of the following is a way by which risk can be diversified?

By creating a broader portfolio of products through innovation

Product development or product design entails a process of balancing which types of considerations?

Engineering Manufacturing Marketing

Product development entails a variety of processes and considerations to determine which aspects of a product or service?

Form and features

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?

It is better than its substitutes.

What will happen to a firm if it continues to produce the same products in a saturated market?

It will eventually decline.

What objectives do firms have in adding new products, services, and processes to their offerings?

To keep customers from getting bored with existing products To satisfy the changing needs of consumers

What might a concept include along with a brief written description of the product?

Visual images Customer needs it satisfies

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

True or False: New products must be targeted toward end consumers.

false