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How does new-product development differ for a services company?
ADeveloping the prototype takes less time and resources
BThe product is never tested in the market beforehand
CNo marketing strategy needs to be built for a service
DGoals for the service are never stated in money terms
Answer & Solution
Correct answer: A. Developing the prototype takes less time and resources
1. The development process for a service is similar to the one for a good.
2. The difference is that developing the prototype can take less time and fewer resources.
3. For a service it means developing the service and training personnel so it can be tested.
4. Because service delivery is flexible, changes can often be made immediately.
5. Testing and strategy building are still required, so the second and third options are false.
_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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