SC Johnson Has Developed, "Pledge Wipes", an Ingenious Twist on Their

question 42

Multiple Choice

S.C. Johnson has developed, "Pledge wipes", an ingenious twist on their widely available wood cleaner Pledge. The marketing manager wishes to test market the new product, but he is hesitant to do so because other manufacturers of home cleaning products could easily duplicate S.C. Johnson's modification. He opts for test marketing by showing some consumers the new wipes and asking them to rate the product's features. This is a(n) :

• A) controlled test market.
• B) standard test market.
• C) simulated test market.
• D) electronic test market.
• E) None of the above.

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Definitions:

Product Costs

Costs that are directly associated with the production of goods or services.

Margin of Safety

Margin of Safety represents the difference between actual sales and break-even sales, indicating the amount by which sales can decrease before a business incurs a loss.

Break-Even Point

The point at which total costs equal total revenues, indicating that a business is not making a profit but also not incurring a loss.

Variable Cost

Costs that vary in direct proportion to changes in a business’s level of activity or volume of output produced, such as materials and labor.