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Problem

What is a determinant attribute and why is it important to a firm in the new product development process?

Step-by-step solution

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Step 1/3

A determinant attribute is a feature or characteristic of a product that is considered to be critical to its success. It is a feature that is critical to the product's target market and that the customer is willing to pay for.

Step 2/3

In the new product development process, determinant attributes are important because they help companies to focus on the most important features of the product and to make sure that the product meets the needs and expectations of the target market. By focusing on the determinant attributes of the product, companies can ensure that they are creating a product that will be well-received by the market, and that will provide a strong return on investment.

Determinant attributes also help companies to differentiate their product from the competition by identifying unique features and benefits that are important to the target market. This can help companies to establish a competitive advantage and to increase the likelihood of success in the market.

Additionally, by understanding the determinant attributes of a product, companies can also better understand the costs and resources required to develop and produce the product, allowing them to make more informed decisions about pricing and manufacturing.

Step 3/3

Determinant attributes are important to a firm in the new product development process because they help companies to focus on the most important features of the product, differentiate the product from the competition, understand the costs and resources required, and increase the likelihood of success in the market.