A major benefit of using test markets as a quantitative forecasting method is that:
A)they provide realistic information on actual purchases rather than intent to buy.
B)they are quick and inexpensive.
C)they combine and average the outlooks of top executives from such areas as marketing, finance, and production.
D)they solicit opinion from experts outside the firm such as academic researchers.

Question

A major benefit of using test markets as a quantitative forecasting method is that:​
A)​they provide realistic information on actual purchases rather than intent to buy.
B)​they are quick and inexpensive.
C)​they combine and average the outlooks of top executives from such areas as marketing, finance, and production.
D)​they solicit opinion from experts outside the firm such as academic researchers.

Quizplus · Accepted Answer

Test markets provide actual data on consumer purchases, which is more realistic than relying on consumer intent to buy. This can lead to more accurate forecasting and better decision making. The other options are not accurate descriptions of the benefits of test markets.

A Major Benefit of Using Test Markets as a Quantitative