Cellular Inc

question 72

Multiple Choice

Cellular Inc. makes a major breakthrough in cell phone technology and design. Their research and development department has created advanced micro-circuitry that is one hundred times more sensitive to cell signals than conventional cell phones. This means that there is almost never a break in cell phone signals even when the caller is several miles from what would be considered "in range" for conventional phones. The problem is that the new technology adds about $100 to the cost of the phone. Cellular Inc. must spend a considerable amount of funds to retool in order to produce the new phones. They decide to test market the new phones. The company is located in Toronto and several executives believe it would be less costly to run the test market in their own city. However, one of the marketing managers has argued for running at least two test markets; one in Guelph, Ontario and one in Red Deer, Alberta. What criterion for test market selection is the marketing manager using?

• A) representativeness
• B) degree of isolation
• C) control over media
• D) control over distribution
• E) lower costs

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Definitions:

Social Assistance

A government program designed to provide financial aid to individuals or families in need, often based on income, disability, or unemployment status.

Single Mothers

Women who are raising their children without the presence or support of a partner.

Struggle With Poverty

The ongoing hardship and difficulties faced by individuals or communities living below the poverty line, affecting their quality of life.

Transitional Poverty

A temporary state of economic hardship experienced by individuals or families as they attempt to move from one socioeconomic status to another.