Ch 20: Product design

Question 1

Product design factors

Answer 1

FORCED SCRAMPS

o Financing requirement
o Onerousness of guarantees
o Risk characteristics
o Competition
o Extent of cross subsidies
o Distribution channels
o Sustainable investment options
o Consistency with other products
o Regulation
o Administration system
o Marketability
o Profitability
o Sensitivities of profit

• Additional considerations
  o Risk profile of business
  o Extent of meeting pH needs