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Mariulka [41]
3 years ago
10

Why do new products fail? List the main four reasons.

Social Studies
1 answer:
Setler [38]3 years ago
4 0

The following are the four reasons why new products fail in a market:

Higher price: One of the most important factors to cause the popularity or the failure of a new product is the prize of the product. The higher production and distribution cost may lead to the cost of the product to be higher. But those products are not meant for the consumers belonging to the lower and middle-income groups. Which leads to the failure of the product.

Poor timing: another crucial factor in determining the success or failure of a new product is the timing. If the product is introduced in the market at wrong or poor time may turn out to be a failure.

The extent of competition: competition in the market is a very important factor for the success of the product. For instance, if the market is a monopoly, there is a possibility for the success of the product, however, in the perfect competition, where people may have many alternatives the product may get a failure.

Poor product quality: if the quality of the product is poor, buyers would not prefer to buy it.

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