Question 1

Today test marketing has been largely replaced by _____.
A)simulated test marketing
B)rollouts
C)informal sales
D)minimarkets

Accepted Answer

Rollouts have largely replaced test marketing because they are a quicker and more cost-effective way to launch a new product. Rollouts involve introducing a new product in a limited number of geographic areas and then gradually expanding the distribution if the product is successful. simulated test marketing is still used, but it is not a replacement for test marketing itself. Informal sales and minimarkets are not common replacements for test marketing.

Question 2

Explain test marketing with an example.

Accepted Answer

The answer of Explain test marketing with an example....

Question 3

Which of the following market testing methods is sometimes called tiered marketing or limited marketing?
A)Rollout
B)Minimarket
C)Simulated test marketing
D)Informal selling

Accepted Answer

Rollout is sometimes called tiered marketing or limited marketing because it involves introducing a product gradually to different markets or segments.

Question 4

What typically happens in this method of market testing is that a firm first picks,say,two cities in which to sell the new product and two cities very similar to the first where the product is not sold.All four are watched closely and stocking and sales of the new product are audited.Identify the market testing method in discussion.
A)Test marketing
B)Informal selling
C)Simulated test market
D)Speculative sale

Accepted Answer

The method described involves selecting specific cities to sell a new product and closely monitoring sales and stocking. This is a classic example of test marketing, which involves limited and controlled selling of a product in a particular geographic area to assess its viability and potential success before a full-scale launch. Therefore, option A) is the best choice for this question.

Question 5

Which of the following tests all market variables-including competition and the trade?
A)Test marketing
B)Minimarkets
C)Speculative sales
D)Simulated test markets

Accepted Answer

Test marketing involves launching a product in a limited market to evaluate its performance, including competition and trade factors, before a full-scale launch.

Question 6

Which of the following statements is true regarding rollout?
A)Today rollout is increasingly being replaced by test marketing.
B)The knowledge obtained from rollout is significantly less than that obtained from test marketing.
C)Almost all the problems in test marketing are present in the rollout method.
D)Rollout is sometimes called tiered marketing.

Accepted Answer

Rollout is sometimes called tiered marketing because it involves introducing a product in a limited number of geographic areas and then gradually expanding the marketing to additional areas. Option A is incorrect because rollout and test marketing are two different methods with different purposes. Option B is incorrect because rollout may provide a significant amount of knowledge about customer reactions and market demand. Option C is incorrect because rollout may not face all the problems of test marketing, such as high costs and time-consuming implementation.

Question 7

What are the two important insights that can be gained from market testing?

Accepted Answer

The answer of What are the two important insights that...

Question 8

Firms that want to use two or more market testing techniques are more likely to begin with a _____ method.
A)minimarket
B)pseudo sale
C)direct marketing
D)full sale

Accepted Answer

Pseudo sale methods are often used initially because they are less costly and provide preliminary insights before committing to more expensive and extensive market testing techniques.

Question 9

Which of the following statements is true regarding test marketing?
A)Test market results are projectable.
B)We can control all environmental factors.
C)It offers the most abundant supply of information.
D)Test marketing is cheap and quick.

Accepted Answer

The answer of Which of the following statements is true...

Question 10

A rollout as compared to test marketing:
A)cannot provide as much datA.
B)gives competitors more time to beat the firm to national market.
C)allows the firm to minimize losses in case of failure.
D)takes more time to go national.

Accepted Answer

A rollout allows the firm to gradually introduce the product or service to different markets, which helps minimize losses in case of failure. Test marketing, on the other hand, provides more data but also gives competitors more time to beat the firm to the national market. Rollouts can be faster than test marketing in going national as they are often used in conjunction with larger marketing campaigns.

Question 11

Write a short note on minimarkets.What are its advantages?

Accepted Answer

The answer of Write a short note on minimarkets.What are...

Question 12

Discuss the various problems associated with simulated test markets.

Accepted Answer

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Question 13

A firm desiring to use two or more market testing techniques is likely to follow its early,first effort with some type of _____ method especially in the case of informal selling for industrial firms or minimarkets for consumer firms.
A)controlled sale
B)pseudo sale
C)speculative sale
D)simulated test market

Accepted Answer

Controlled sale methods are often used after initial market testing efforts, especially in informal selling for industrial firms or minimarkets for consumer firms, to gain more accurate insights into consumer behavior and product performance.

Question 14

Today,test marketing is used primarily to:
A)make go / no-go launch decisions.
B)fine-tune marketing plans.
C)simulate sales.
D)predict profits.

Accepted Answer

Test marketing is primarily used to fine-tune marketing plans by gathering data on consumer responses and making necessary adjustments before a full-scale launch.

Question 15

Briefly describe the speculative sale method.

Accepted Answer

The answer of Briefly describe the speculative sale method....

Quiz 18: Market Testing

Today test marketing has been largely replaced by _____.

Explain test marketing with an example.

Which of the following market testing methods is sometimes called tiered marketing or limited marketing?

Which of the following tests all market variables-including competition and the trade?

Which of the following statements is true regarding rollout?

What are the two important insights that can be gained from market testing?

Firms that want to use two or more market testing techniques are more likely to begin with a _____ method.

Which of the following statements is true regarding test marketing?

A rollout as compared to test marketing:

Write a short note on minimarkets.What are its advantages?

Discuss the various problems associated with simulated test markets.

A firm desiring to use two or more market testing techniques is likely to follow its early,first effort with some type of _____ method especially in the case of informal selling for industrial firms or minimarkets for consumer firms.

Today,test marketing is used primarily to:

Briefly describe the speculative sale method.