Which of the Following Is a Disadvantage of Test Marketing

question 60

Multiple Choice

Which of the following is a disadvantage of test marketing?

• A) It requires major changes in consumer behavior such as rejecting microwave ovens.
• B) It promotes the criticism of an idea,no matter how ridiculous it may seem.
• C) It inaccurately predicts the success of a product that creates new consumption patterns.
• D) It exposes the new product and its marketing mix to its competitors before its introduction.

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Definitions:

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a given period, used to assess efficiency in managing inventory stock.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Quick Ratio

A liquidity indicator that measures a company's ability to meet its short-term obligations with its most liquid assets.

Marketable Securities

Financial instruments that can be easily converted to cash, typically within one year, such as stocks or bonds.