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.

Question

Quizplus · Accepted Answer

Test marketing can be costly and time-consuming, which can give competitors a chance to gain an advantage. Therefore, it is not usually done on products that are low-risk or when management is confident in the product or its marketing program. Additionally, the amount of test marketing needed can vary depending on the product and its development costs.

Which of the Following Statements Is True of Test Marketing