New product benefit of a keeping up in a marke come

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new product benefit of: A. keeping up in a marke come mostly from new B. satisfying the changing needs of current and new custo C. avoiding market saturation from products that have bee D. creating diversification and reducing risk. E. all of these. Customers' tastes change, both over time and depending on the situation. By offering specials that offer variety, the restaurant seeks to satisfy
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these changing needs. AACSB: Analytic Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-01 Identify the reasons firms innovate. Topic: Why Do Firms Create New Products? 24. (p. 230) By adding new product lines beyond its core business of computer software, like the XBox 360 game system, Microsoft primarily benefits by: If Microsoft were totally dependent on software sales, a shift away from Windows would damage its sole market. By diversifying into game systems, Microsoft seeks to be less dependent on any one market. AACSB: Analytic Blooms: Understand Difficulty: 3 Hard Learning Objective: 11-01 Identify the reasons firms innovate. Topic: Why Do Firms Create New Products? 25. (p. 231) Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of: Since customers crave the "latest and greatest," this indicates that most sales come from new products, requiring game manufacturers to keep
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up with that trend. AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 11-01 Identify the reasons firms innovate. Topic: Why Do Firms Create New Products? 26. (p. 229-231) Which of the following is NOT one of the benefits to a firm of new product development? Production costs are actually likely to rise due to new product development. The remaining items are potential benefits of new product development. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-01 Identify the reasons firms innovate. Topic: Why Do Firms Create New Products? 27. (p. 232) If they create new markets, pioneer or
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