Test Marketing Involves Offering a Product for Sale

question 176

Multiple Choice

Test marketing involves offering a product for sale

• A) to a random sample of people in the top 10 U.S. cities.
• B) in as broad a geographic region as possible.
• C) to consumers that are representative of the target market.
• D) on a limited basis in a defined area.
• E) only on certain days of the week and hours of the day.

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Definitions:

Demand Variability

The extent to which the demand for goods or services fluctuates over a certain period.

Safety Stock

Inventory kept on hand as a buffer against variability in demand or supply, to avoid out-of-stock situations.

Standard Deviation

A measure of the dispersion or spread of data points in a data set, indicating how much variation there is from the average.

Service Level

A measure of the quality of service provided by a business, often evaluated against customer expectations or industry standards.