This includes totally new inventions and simple color changes in existing products. The FTC limits claims of newness to six months. Because new product success is important to companies seeking growth, most firms formalize the new- product development process. New-Product Development Process Idea Generation. Sharp companies keep an open mind and eye to many relevant sources of new product ideas.
Some companies also weigh ideas for their effect on consumer welfare.
Safety must be considered. The Consumer Product Safety Act encourages safety in product design and better quality control. Also, product liability means that the company has the legal obligation to pay damages to persons injured by defective or unsafe products. Such market research can be informal or a very formal, systematic investigation. Here more research and development is conducted on approved product concepts.