Which statement is not true about simulated test markets?
A) While a firm's test marketing is in progress, competitors have an opportunity to beat it to the national market.
B) Competitors often take actions such as increasing their promotional efforts to contaminate the test marketing program.
C) They yield mathematical estimates of market share based on initial reaction of consumers to a new product.
D) Both A and B are not true about simulated test markets.

Question

Quizplus · Accepted Answer

Simulated test markets are designed to avoid the issues mentioned in A and B, as they are conducted in a controlled environment to prevent competitors from interfering and to speed up the process, reducing the risk of competitors beating the firm to market.

Which Statement Is Not True About Simulated Test Markets