Page 348 - Introduction to Business

322 PART 3 Marketing

EXHIBIT 9.4
Six Aspects of New Low Relative advantage High
High
Low
Products That Affect Their level of level of
Level of Acceptance and the acceptance acceptance
Speed at Which It Occurs Low Compatibility High

Complex Complexity Simple
and and
Low Communicability High

High Cost Low
Low High
rate of rate of
speed speed
Low Divisibility High

development The step in the new often have an R&D facility in another country to take advantage of the scientific
product development process in which personnel there. Another plus: Sometimes the R&D results occurring in overseas
the design of the new product is R&D locations can be transferred back to the United States for application to the
finalized (p. 321)
domestic market. Such was the case with the European R&D operation of Ford
Motor Company and the Ford Escort, which was developed initially for the Euro-
pean market.
Companies have to decide on R&D budgets and allocate dollars to specific
projects. A major decision is how much to spend on applied and basic research.
applied research Research designed to Applied research has as its objective the solving of specific problems. For example,
achieve a specific objective a pharmaceutical firm might be developing specific drugs to help cure cancer.
basic research Research whose aim is Basic research is research for the capturing of knowledge now, with no immediate
to obtain knowledge with no specific, payoff expected, although a payoff down the road is hoped for. The same firm that
immediate payoff in mind

Technicians inspect computer
discs at an R&D facility in Taiwan.

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