The purpose of the screening stage in a new-product development process is to:
a. refine the promotion campaign to be used with the new product.
b. eliminate ideas that are inconsistent with an organization's new-product strategy.
c. identify and eliminate concept tests that might lead to duplication of experiments.
d. set a limit on the number of members allowed to assess the viability of a new-product idea.
ANSWER: b
The screening stage in a new-product development process is used to eliminate ideas that are inconsistent with an organization's new-product strategy or are obviously inappropriate for some other reason.
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Indicate whether the statement is true or false
All costs that do not vary with the size of the order but are incurred each time an order is placed are referred to as
A) the material cost and are denoted by C. B) the fixed ordering cost and are denoted by S. C) the holding cost and are denoted by H. D) the purchase price and are denoted by P.