n 50 Which of the following statements is true of test marketing? A. The amount of test marketing needed remains constant for each new product. B. When the costs of developing and introducing the product are low, the company will have to do significant test marketing. C. Test marketing is seldom done on products that are risky. D. Test marketing is seldom done when management is not sure of the product or its marketing program. E. Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

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Bianca

Business

3 August, 11:59

n 50 Which of the following statements is true of test marketing? A. The amount of test marketing needed remains constant for each new product. B. When the costs of developing and introducing the product are low, the company will have to do significant test marketing. C. Test marketing is seldom done on products that are risky. D. Test marketing is seldom done when management is not sure of the product or its marketing program. E. Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

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Answers (1)

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Noe Bradshaw · Answer 1

Option E

Explanation:

In simple words, Test marketing relates to the exercise performed in a research environment (the study market) that consists of live retailers as well as real-life purchasing scenarios, without the consumers realizing that they are taking part in an assessment workout. To assess customer response, it simulates the expected market-mix.

Thus, from the above we can conclude that the correct option is E.