A Consumer Products Company Is Considering Introducing a New Product

question 52

Multiple Choice

A consumer products company is considering introducing a new product nationally. To help make the decision, it first conducts a test market by selling the product for a few months in one city. This is an example of:

• A) descriptive statistics.
• B) charts and graphs.
• C) estimation.
• D) hypothesis testing.

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Definitions:

Consumer Behavior

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Marginal Utility

The incremental utility or enjoyment gained from the consumption of one more unit of a good or service.

Opportunity Cost

Forgoing the chance to gain from other possibilities by selecting one option.

Consumer Behavior

The study of how individuals, groups, and organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.