Which of the Following Statements Is True About the Forecasting

question 65

Multiple Choice

Which of the following statements is true about the forecasting technique known as the "test market"?

• A) Tests must be conducted in dozens of markets across the country, making the technique both time-consuming and expensive.
• B) It provides realistic information on actual purchases rather than on customers' intention to buy.
• C) It involves giving out free samples and surveying consumers after they've tried or used the product.
• D) It is a qualitative technique.

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Definitions:

Perfectly Inelastic

A situation where the demand for a product does not change in response to changes in price; the demand curve is perfectly vertical.

Gas-guzzler Automobiles

Describes vehicles that are inefficient in their fuel consumption, typically with lower miles per gallon.

Japanese Fuel-efficient Cars

Automobiles produced by Japanese manufacturers known for their high fuel efficiency and innovative engineering.

Consumer

A person or collective that buys products and services for private consumption.