The Phase of New-Product Development in Which a Small Sample

question 46

Multiple Choice

The phase of new-product development in which a small sample of potential buyers is presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called:

• A)concept testing.
• B)customer response testing.
• C)idea analysis.
• D)test marketing.
• E)screening.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Variable Costs

Expenses that fluctuate with the level of output or activity, in contrast to fixed costs which remain constant.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.