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Test Marketing Is Considered a Critical Step in New Product

question 8

Essay

Test marketing is considered a critical step in new product development in most Western countries.Comment on test marketing.Also, outline some of the shortcomings of test marketing?


Definitions:

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing to purchase.

Price Elasticity

A measure reflecting how demand for a particular good shifts with adjustments in its pricing.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices, typically downward sloping.

Total Revenue

The total income a firm receives from the sale of its products, calculated by multiplying price by quantity sold.

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