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

question 100

Multiple Choice

The phase of new-product development in which a small sample of potential buyers are 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:

Short Run

The short run is a period in economics where at least one factor of production is fixed, limiting the adjustments a firm can make to its inputs.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the cost of producing one more unit of output.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of the firm to adjust production.

Competitive Firm

A business operating in a market where it has little to no influence over the price of its product or service due to competition.