Identify the situation that most likely requires a company to conduct market testing on its new product.
A) The company's sales promotion plan does not depend on perfect execution.
B) The company's capital investments in the new product are high.
C) The company knows the business well and has been successful there.
D) The sales and revenue forecasts for the new product are conservative.

Question

Quizplus · Accepted Answer

If a company has made high capital investments in a new product, it is important to conduct market testing to ensure that the product will be successful and profitable in the market. This will help the company avoid wasting resources on a product that may fail due to a lack of demand or competition. Options A, C, and D do not necessarily require market testing.

Identify the Situation That Most Likely Requires a Company to Conduct