Which Statement Is Not True About Simulated Test Markets

question 20

Multiple Choice

Which statement is not true about simulated test markets?

• A)While a firm's test marketing is in progress,competitors have an opportunity to beat it to the national market.
• B)Competitors often take actions such as increasing their promotional efforts to contaminate the test marketing program.
• C)Both A and B are not true about simulated test markets.
• D)They yield mathematical estimates of market share based on initial reaction of consumers to a new product.

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Definitions:

Raw Materials

Fundamental components or substances used at the beginning of the production process to manufacture goods.

Raw Material Costs

The total expense incurred for materials that are used in the production of goods or services.

Beginning Inventory

The value of the total goods available for sale at the start of an accounting period.

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial period, determined by adding the initial inventory to acquisitions and subtracting the cost of goods sold.