Which of the following statements is most likely true about the new product development process?
A) The first step in developing a new product involves determining any budgetary or distribution limitations.
B) Most firms discourage employees from contributing new product ideas because of legal concerns.
C) In most cases, concept testing is followed by concept development.
D) A product concept should be developed for each idea before it goes through idea screening.
The correct answer and explanation is :
The correct answer is:
D) A product concept should be developed for each idea before it goes through idea screening.
Explanation:
The new product development (NPD) process consists of several structured steps that companies follow to bring new products to market. These steps generally include idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization.
Why Option D is Correct:
Before an idea is screened, it should be developed into a product concept. A product concept is a detailed version of an idea that describes the product’s features, target market, and potential benefits. Without a well-defined concept, it is difficult to evaluate whether the idea is worth pursuing. Idea screening involves evaluating these concepts to filter out unfeasible or weak ideas before investing further resources.
Why the Other Options Are Incorrect:
- Option A (Determining budgetary or distribution limitations first):
The initial step in new product development is idea generation, not budgeting or distribution considerations. While financial and logistical concerns are important, they come into play later in the process, typically during business analysis or commercialization. - Option B (Discouraging employees from contributing ideas):
Most firms actually encourage employees to contribute ideas because innovation often comes from within the organization. Companies may use suggestion systems, brainstorming sessions, or R&D departments to foster innovation. - Option C (Concept testing is followed by concept development):
The correct order is concept development first, then concept testing. Concept development creates a clear idea of what the product will be, while concept testing involves presenting it to potential customers for feedback before moving forward.
Thus, Option D is the best choice as it aligns with the structured process of new product development.