A new product may fail for many reasons. Which of the following is NOT one of them?

• A. High production costs
• B. Effective market research
• C. Poor marketing strategy
• D. Lack of consumer demand

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which is about reasons why a new product might fail in the market.
2. Step 2: Identify common causes of product failure, such as high production costs, poor marketing strategy, and lack of consumer demand. These factors can directly impact the product's success.
3. Step 3: Recognize that effective market research is generally a tool to prevent failure, not a cause of failure. It helps companies understand consumer needs and market conditions.
4. Step 4: Compare each option to see which one does not logically contribute to product failure. High production costs, poor marketing strategy, and lack of consumer demand are all plausible reasons for failure.
5. Step 5: Conclude that 'Effective market research' is NOT a reason for product failure, but rather a method to avoid it.