A Major Benefit of Using Test Markets as a Quantitative

question 225

Multiple Choice

A major benefit of using test markets as a quantitative forecasting method is that:​

• A)​they provide realistic information on actual purchases rather than intent to buy.
• B)​they are quick and inexpensive.
• C)​they combine and average the outlooks of top executives from such areas as marketing, finance, and production.
• D)​they solicit opinion from experts outside the firm such as academic researchers.

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Definitions:

Productivity Line

A productivity line can refer to a graphical representation showing the relationship between input and output levels, indicating the efficiency of production.

Lectures

Formal presentations or talks given by educators or experts to convey knowledge or information to a group of students or audience.

Production Possibilities Frontier

A graph that represents all the highest possible production levels for two or more products, considering the available inputs like resources and technology.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others.