Reference no: EM133347572
Market Research: Controlling Risk in Decision Making
Managers face risky decisions every day. One method of controlling risk in a decision is conducting market research. This effort is quite necessary for new product development. Many commercial development departments use the popular software Stage-Gate®. This software or system manages each step or gate of the commercial development process from idea generation to launch. Research is conducted and presented to a cross-functional leadership team for each gate before moving on to the next gate. This process shows how important research is to the new product development process. The purpose of the research is to reduce the decision-making risk.
Read the scenario and then respond to the questions in the Discussion Board.
Scenario: You are the VP of finance, and the director of marketing has asked you to review and approve a market research proposal. The director provided the initial 4 Ps (product description, place or distribution method, potential price and profit margin, and tentative promotion plan) for a new product and service. However, you notice there is a mention of the potential customers but no metrics indicating the segmentation of the target market.
You have been asked to approve the sizeable expenditure requesting the following deliverables from a marketing research firm.
Research the market segmentation for a new cell phone product and phone service featuring "safe" cell phones - phones without algorithmic control that are guaranteed to protect data and call privacy.
1. If you have no quality control manager, what quality parameters would you require from the product development department to ensure they provide a quality product/service? Explain.
2. How would knowing the market segmentation influence your quality control measures?
3. Do you think companies are justified in using AI algorithms to control employees? Why or why not?
4. Should only select companies or industries use AI algorithms to control their employees? If so, explain. If not, provide an alternative way to control employees working virtually or out of the office.
5. How does conducting this research reduce the decision-making risk for the VP of finance?