Mirka Beauty Products, a Beauty Company, Was Testing the Quality

question 85

Multiple Choice

Mirka Beauty Products, a beauty company, was testing the quality of its newly developed cream by offering it only in the city of Brightland prior to its national launch. Unfortunately, two of its competitors released similar products before Mirka Beauty could release its product in the market. Realizing that a lapse had occurred, Mirka Beauty released its product in the market emphasizing an additional moisturizing feature which would address customers' needs during the winter season that was just around the corner. Mirka Beauty had prior information about these customer needs because of a series of tests it had conducted before releasing the product which helped it launch the product with the additional feature.
-Which of the following statements is correct about the test marketing carried out by Mirka Beauty Products?

• A)It avoids promotions such as the use of coupons.
• B)It uses all the elements of the marketing mix.
• C)It costs less and takes much less time than premarket tests.
• D)The product appears in all the retail outlets of a country with reduced pricing.
• E)A firm cannot estimate demand for the entire market based on a test marketing.

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Definitions:

Price Discrimination

The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.

Tying Contracts

Agreements where the seller of a product or service requires the buyer to also purchase a secondary product or service.

Sherman Act

A landmark federal statute in the field of U.S. antitrust law passed in 1890 to protect competition and prohibit monopolistic practices.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing unfair business practices.