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New-product failure rates for household and grocery products can approach which level?
AAround 20 percent of the products launched
BAround 40 percent of the products launched
CAround 60 percent of the products launched
DAround 80 percent of the products launched
Answer & Solution
Correct answer: D. Around 80 percent of the products launched
1. Developing new products is both costly and risky, especially for firms selling goods.
2. Failure rates for household and grocery products can approach 80 percent.
3. Overall, only 3 percent of products exceed their initial sales targets in the first year.
4. The three lower figures all understate how risky this category is.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.7 Creating Products That Deliver Value_
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