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What Is Test Marketing? What Role Does It Play in New

question 73

Essay

What is test marketing? What role does it play in new product development? What factors do firms consider when determining whether or not to conduct test marketing?


Definitions:

Ask Price

The lowest price a seller is willing to accept for an asset in the market.

Corporate Bond

A debt security issued by a corporation to raise funding, which offers interest payments to holders until maturity.

Futures Contract

A standardized legal agreement to buy or sell a specific commodity or financial asset at a predetermined price at a specified time in the future.

US Treasury Repo

A form of short-term borrowing for dealers in government securities, using U.S. Treasury securities as collateral.

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