One Disadvantage of Test Marketing a New Product Is That

question 86

Multiple Choice

One disadvantage of test marketing a new product is that:

• A) the product is distributed on a regional basis.
• B) competitors may copy the product and rush to introduce a similar product.
• C) the results give little indication of the product's future success.
• D) price, advertising, and packaging cannot be varied from market to market.
• E) it does not allow marketers to measure the extent of repeat purchases.

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Definitions:

Current Asset

Resources anticipated to be changed into cash, disposed of, or used up either within a year or over the course of the business's usual operational cycle, depending on which timeframe extends further.

Revenue

The total amount of income generated by the sale of goods or services related to a company's core business activities.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.