Test Marketing Involves Offering a Product for Sale

question 243

Multiple Choice

Test marketing involves offering a product for sale

• A)to random sample of people in the top ten major cities of the U.S.
• B)in as broad a geographic region as possible.
• C)to consumers that are representative of the target market.
• D)on a limited basis in a defined area.
• E)only on certain days of the week and hours of the day.

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Definitions:

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to present value.

Cost of Equity

The cost of equity is the return that a company is expected to pay to its shareholders for their investment in the company's equity.

Flotation Costs

Expenses incurred by a company when it issues new securities, including fees to underwriters, legal fees, and registration fees.