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Characteristics of a new product. The long-run success of
Chapter 3, Problem 43E(choose chapter or problem)
Problem 43E
Characteristics of a new product. The long-run success of a business depends on its ability to market products with superior characteristics that maximize consumer satisfaction and that give the firm a competitive advantage (Kotler & Keller, Marketing Management, 2006). Ten new products have been developed by a food-products firm. Market research has indicated that the 10 products have the characteristics described by the following Venn diagram:
a. Write the event that a product possesses all the desired characteristics as an intersection of the events defined in the Venn diagram. Which products are contained in this intersection?
b. If one of the 10 products were selected at random to be marketed, what is the probability that it would possess all the desired characteristics?
c. Write the event that the randomly selected product would give the firm a competitive advantage or would satisfy consumers as a union of the events defined in the Venn diagram. Find the probability of this union.
d. Write the event that the randomly selected product would possess superior product characteristics and satisfy consumers. Find the probability of this intersection.
Questions & Answers
QUESTION:
Problem 43E
Characteristics of a new product. The long-run success of a business depends on its ability to market products with superior characteristics that maximize consumer satisfaction and that give the firm a competitive advantage (Kotler & Keller, Marketing Management, 2006). Ten new products have been developed by a food-products firm. Market research has indicated that the 10 products have the characteristics described by the following Venn diagram:
a. Write the event that a product possesses all the desired characteristics as an intersection of the events defined in the Venn diagram. Which products are contained in this intersection?
b. If one of the 10 products were selected at random to be marketed, what is the probability that it would possess all the desired characteristics?
c. Write the event that the randomly selected product would give the firm a competitive advantage or would satisfy consumers as a union of the events defined in the Venn diagram. Find the probability of this union.
d. Write the event that the randomly selected product would possess superior product characteristics and satisfy consumers. Find the probability of this intersection.
ANSWER:
Solution:
Step 1 of 4
Given the Venn diagram is
a).
To find which products are contained in this intersection.
From the given Venn diagram we observe that products 6 and 7 are contained in the intersection.
That is,
