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.

---

Definitions:

Ordinarily Prudent Person

A legal standard that represents how a typical, reasonable person would act in certain circumstances, usually used to determine negligence.

Pac-Man

A classic arcade video game first released in 1980 featuring a character navigating a maze while eating dots and avoiding ghosts.

Tender Offer

A public offer by a bidder to purchase a subject company’s shares directly from its shareholders at a specified price for a fixed period of time.

Greenmail

A situation where a company buys back its own shares at a premium from a potential acquirer to prevent a takeover.