An External Evaluation with Consumers That Consists of Preliminary Testing

question 21

Multiple Choice

An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product is referred to as

• A)new-product strategy development.
• B)idea generation.
• C)alternative evaluation.
• D)market testing.
• E)a concept test.

---

Definitions:

Market Value

The present rate at which a product or service can be purchased or sold in the market.

Residual Dividend Policy

A strategy where a company pays dividends out of the residual or leftover equity once all project capital requirements are met.

Payout Ratios

The percentage of a company's earnings distributed to its shareholders in the form of dividends, relative to its total earnings.

Stock Repurchases

A corporate action in which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.