Banking · Product Development Process
A branch manager submits an idea to the New Product Development committee for a micro-loan product aimed at street vendors. The idea is vetoed in the Idea Screening stage because the product carries a high credit risk (15 percent expected default rate), which violates a key mandate in the bank's Product Policy. This veto is an example of what constraints acting on the Product Development Process?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Ethical Constraint: Tangibles dimension overriding Empathy; Strategic Constraint: Distribution of third party products rules
- 2Ethical Constraint: Bank prioritizing Safety Needs over the Societal Needs of the vendors; Strategic Constraint: Risk Appetite defined in the Product Policy✓
- 3Ethical Constraint: Customer Requirements about Service Quality being ignored; Strategic Constraint: Lack of Test Marketing data
- 4Ethical Constraint: Maslow's Self-Actualization Needs being ignored; Strategic Constraint: Product Life Cycle timing
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Ethical Constraint: Bank prioritizing Safety Needs over the Societal Needs of the vendors; Strategic Constraint: Risk Appetite defined in the Product Policy
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