Which of the Following Factors Is Most Likely to Invalidate

question 21

Multiple Choice

Which of the following factors is most likely to invalidate test marketing study results?

• A)When test marketing areas are representative of and proportionate to the market in general
• B)When the test-market period is so long that it can determine whether the product will be repurchased by customers
• C)When test stores provide complete support to the study
• D)When test-market products are advertised beyond a profitable level for the market in general

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Definitions:

Cost Drivers

Factors that cause the cost of an activity or operation to increase or decrease, such as machine hours, labor hours, or the volume of production.

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity, providing a more useful comparison of actual to budgeted performance.

Guests

Individuals who receive services or hospitality, often in contexts such as hotels, restaurants, or events.

Billafuerte Jeep Tours

A hypothetical or specific company offering guided jeep tours in the Billafuerte region.