All of the following are benefits of new product development to a firm except:

reducing the costs of production.

satisfying the changing needs of current and new customers.

avoiding market saturation from products that have been on the market for a long time.

creating diversification and reducing risk.

keeping up in a market with short product life cycles where sales come mostly from new products.

Question

Business

Damian Erickson

26 January, 21:36

All of the following are benefits of new product development to a firm except:

reducing the costs of production.

satisfying the changing needs of current and new customers.

avoiding market saturation from products that have been on the market for a long time.

creating diversification and reducing risk.

keeping up in a market with short product life cycles where sales come mostly from new products.

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Answers (1)

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Addison Guerrero · Answer 1

Reducing the costs of production.

Explanation:

New product development is a procedure that requires a huge first time cost of production. The product might need new technology and new means to produce.

For example, even just to come up with a new flavor for an already existing brand of chips, new raw materials, storage space, more labor, new tools and equipment, increased marketing cost is required. This poses an increase in cost and certainly not a decrease in the cost of production.