Regarding New-Product Development, Market Tests

question 118

Multiple Choice

Regarding new-product development, market tests:

• A) are used mostly for durable products because of their high production costs and risks.
• B) seek customer reactions to ideas-not actual products.
• C) should test the product and specific marketing mix variables.
• D) are not very costly, but take a long time to do.
• E) None of these alternatives is correct.

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Definitions:

Expectancy Theory

A motivational theory suggesting that people are driven to act in a certain way based on the expectation that their actions will lead to a desired outcome.

Motivation

The psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort, and a person's level of persistence.

Work

Exertion or effort directed to produce or accomplish something; can be physical or mental.

Share Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell shares of a stock at a set price within a specific period.