Under What Circumstances Might It Be Wise for a Company

question 17

Multiple Choice

Under what circumstances might it be wise for a company to do little or no test marketing?

• A)when a new product requires a major investment
• B)when management is unsure of the projected demand for the product
• C)when management is implementing a mass marketing program
• D)when the product has no substitutes and is new in its category
• E)when the costs of developing and introducing the product are low

---

Definitions:

MIRR

Modified Internal Rate of Return; a financial measure that adjusts the IRR to reflect the project's cost of capital and reinvestment rate, providing a more realistic view of the project's profitability.

Consumer Price Index

A metric that assesses the weighted average cost of a collection of consumer goods and services, serving as a gauge for inflation levels.

Producer Price Index

A measure of the average changes in prices received by domestic producers for their output.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP to adjust for inflation.