If the Management Decision Problem Is: "Should a New Product

question 48

Multiple Choice

If the management decision problem is: "Should a new product be introduced?" what is the most appropriate marketing research problem?

• A) determining the impact of new distribution outlets
• B) determining consumer preferences and purchase intentions for the proposed new product
• C) determining the effectiveness of the current advertising campaign
• D) determining the price elasticity of demand and the impact on sales and profits of various levels of price changes

---

Definitions:

Maximizing Profits

The process of adjusting production or operations to achieve the highest possible profitability from the business activities.

Perfectly Competitive Firms

Companies operating in a market where no individual firm has the power to influence market prices or product quality, ensuring no barriers to entry or exit.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Influence Over Price

The ability of a seller or a buyer to affect the price of goods or services in the market.