Why Do Marketers Take the Time and Cost Associated with Test

question 75

Essay

Why do marketers take the time and cost associated with test marketing?

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Definitions:

Decision Tree Analysis

A graphical representation of possible solutions to a decision based on different conditions or events, used in risk management and decision making.

Cost Of Capital

The necessary rate of return to consider a capital expenditure project, like the development of a new factory, as viable.

Risk Profile

An evaluation of an individual's or organization's willingness to take risks, as well as their financial ability to manage the impact of those risks.

Incremental

Describing something as increasing or adding on, often in small or gradual steps.