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:

Lex Mercatoria

A body of commercial law and customs used by merchants throughout Europe during the medieval period, which still influences international trade law today.

Law of Merchants

Historical body of law originating from the practices of merchants and traders dealing with questions of commerce and trade.

Trade Agreements

Contracts between states or countries governing the terms of trade between them, which may include tariffs, trade quotas, and other trade-related provisions.

U.S. and Mexico

Refers to the geopolitical, economic, and cultural relationship between the United States of America and Mexico.