A Concept Test Is an

question 131

Multiple Choice

A concept test is an

• A)internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.
• B)external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product.
• C)internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item.
• D)in-house computer simulation of the new product that closely resembles the actual product to forecast sales.
• E)in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan.

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Definitions:

Demand Falls

A situation where the quantity demanded of a product decreases, often due to changes in price, income, or preferences.

Costs Of Production

All expenses incurred in the creation of goods or services, including raw materials, labor, and overhead costs.

Increasing Cost Industry

An increasing cost industry is one in which production costs rise as the industry's output increases, often due to scarce resources or increasing input prices.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.