Movie Studios Use Market Research to Reduce Their Risk of Losses

question 220

Multiple Choice

Movie studios use market research to reduce their risk of losses by hiring firms such as the National Research Group to conduct test screenings and tracking studies. Often, 300 to 400 prospective moviegoers are recruited to attend a "sneak preview" of a film before its release. After viewing the movie, the audience completes a survey to

• A) evaluate the quality of directing and producing.
• B) critique the title, plot, and characters.
• C) rate the performances of the individual actors and actresses.
• D) recall specific details of the plot and dialogue.
• E) compare the final film with the original script.

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Definitions:

Flexible Budget

A budget that dynamically adjusts in correlation with variations in volume or activity levels.

Donations

Voluntary contributions of assets, including money or goods, to a person, group, or organization without expecting any return.

Standard Number

A benchmark or specific figure considered normal or expected under standard conditions in accounting and manufacturing.

Machine-Hours

An operational metric indicating the total hours a piece of machinery is utilized during a specified timeframe, frequently used for costing and efficiency calculations.