Which of the Following Statements Is True of Test Marketing

question 117

Multiple Choice

Which of the following statements is true of test marketing?

• A) The amount of test marketing needed remains constant for each new product.
• B) When the costs of developing and introducing the product are low, the company will have to do significant test marketing.
• C) Test marketing is seldom done on products that are risky.
• D) Test marketing is seldom done when management is not sure of the product or its marketing program.
• E) Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

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Definitions:

Competitive Parity Method

A budgeting method where a company sets its advertising and marketing budget based on the spending of its competitors.

Objective and Task Method

A budgeting method in marketing where objectives are set first, and then tasks and activities needed to achieve these objectives are determined and budgeted for.

Centralized

A system or process where control or decision-making is consolidated in a single point or location.

Dandelion

A common plant known for its yellow flower heads that turn into distinctive seed heads with fluff, often associated with growth and spreading.