QPractice question
Which of the following best describes New Product Development (NPD)?
  1. A.The structure linking the firm's brands — house of brands, branded house, endorsed brand, hybrid — managing brand equity across the portfolio.
  2. B.Using an established brand to enter a new product category — leverages equity but risks dilution if the extension does not fit.
  3. C.The eight-stage process — idea generation, screening, concept testing, business analysis, product development, market testing, commercialization — for taking innovations from idea to launch. ✓
  4. D.The eight-stage process — idea generation, screening, concept testing, business analysis, product development, market testing, commercialization — for taking innovations from idea to launch.
Why this answer:

New Product Development (NPD) is the eight-stage process — idea generation, screening, concept testing, business analysis, product development, market testing, commercialization — for taking innovations from idea to launch. The other options describe related but distinct concepts in Product & Brand — see the deep-dive guide for the full distinction.

How to think about questions like this

80%+ of new products fail; structured NPD improves the odds. Questions like this test whether you can distinguish New Product Development (NPD) from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.

When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with New Product Development (NPD) for a worked example you can adapt to your assignment.

Underlying concept

Concept · Product & Brand New Product Development (NPD)

More practice in Product & Brand Management

Practice · Product & Brand Management Product Life Cycle — Definition Practice Practice · Product & Brand Management Product Life Cycle — Application Practice Practice · Product & Brand Management New Product Development (NPD) — Application Practice Practice · Product & Brand Management Product Mix and Product Line — Definition Practice Practice · Product & Brand Management Product Mix and Product Line — Application Practice Practice · Product & Brand Management Product Line Stretching — Definition Practice Practice · Product & Brand Management Product Line Stretching — Application Practice Practice · Product & Brand Management Product Line Length and Depth — Definition Practice