Why Do Most Firms Consider Test Marketing Essential for New

question 33

Multiple Choice

Why do most firms consider test marketing essential for new products?

• A)The high price of failure simply prohibits the widespread introduction of new products without testing.
• B)The speed,safeness,and reliability of test marketing is higher than that of simulated market testing.
• C)The ability of test marketing to evaluate consumer preference for a new product prior to developing a prototype increases its importance.
• D)The decision to test a product sets several tasks in motion,such as ordering product materials,starting production,building inventories,and advertising to potential customers.

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Definitions:

Biased By Schemas

Involves shaping perceptions or understandings based on pre-existing cognitive frameworks, which can lead to skewed interpretations.

Ease Of Retrieval

The degree to which information can be easily and quickly accessed from memory, often influencing judgments and decisions.

Mood-Congruent Memory

The phenomenon where individuals are more likely to recall memories that are congruent with their current mood, affecting how memories are encoded, stored, and retrieved.

Rosy Recollection Bias

The tendency to remember past events more positively than they happened.