What Three Ways Can Test Marketing Can Cause Problems for a Company

question 139

Essay

What three ways can test marketing can cause problems for a company? What are two alternatives that can be used instead of traditional test marketing?

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Definitions:

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use or for investment.

Disposable Income

The financial resources available to a household for saving and spending after subtracting income taxes.

Consumption

The part of income or the amount of wealth that is used for purchasing goods and services for personal use.

APC

The Average Propensity to Consume indicates the share of income used for consumption purposes.