As a Method of Market Testing, Which of the Following

question 49

Multiple Choice

As a method of market testing, which of the following is an advantage minimarket testing provides over test marketing?

• A) Minimarket testing allows for greater flexibility in changing price and other variables of a new product when compared to test marketing.
• B) Minimarket testing is free from retailer/distributor stocking problem, whereas test marketing is not.
• C) Minimarket testing can be used for industrial goods and services, whereas test marketing cannot.
• D) Minimarket testing involves laboratory experiments that do not require customers to make cash purchases, whereas test marketing results in a risk to customers.

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Definitions:

Financing Activities

Transactions involving long-term liabilities, stockholder's equity, and changes in short-term loans that impact a company's capital structure.

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the issuing company.

Interest Payments

Payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the principal amount.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.