Deck 18: Market Testing

Question 1

Market testing should begin as soon as a technique can be found that will tell us what we need to know.

Answer 1

True

Question 2

The ASSESSOR's A-T-A-R model uses heuristics for deriving forecasts.

Answer 2

False

Question 3

Market testing and test marketing are synonymous.

Answer 3

False

Question 4

Market testing for industrial goods and services can be conducted with the help of simulated test marketing.

Question 5

Rollout is sometimes called tiered marketing.

Question 6

Market testing can be skipped if the company knows the business well and has been successful there.

Question 7

The speculative sale method involves creating a false buying situation and observing what the consumers do.

Question 8

Speculative sale can be used in situations where industrial firms have very close downstream relationships with key buyers.

Question 9

In informal selling methods we ask the users if they would buy the product but in speculative sale method,we ask the users to buy the product.

Question 10

Market testing seeks to avoid damages resulting from BOTH market rejections AND too much volume.

Question 11

Market testing should typically be carried out:

A)in the concept stage as the idea needs to be tested for practicality.
B)during the prototyping stage.
C)as soon as techniques that will tell us what we need to know are found.
D)once the ideation phase begins.

Question 12

The longer we wait to do the test,the less we will known about the product.

Question 13

Test market results are projectable.

Question 14

Which of the following is the strongest argument for conducting market testing as late as possible?

A)It has least risk from competitors.
B)It is more useful and more reliable.
C)It minimizes costs.
D)It speeds up the entry.

Question 15

Which of the following information will be indicated by market testing?

A)If there is a real need for the product
B)If the product meets the need
C)If the product is marketed poorly
D)If the product can be manufactured with the help of existing infrastructure

Question 16

Distributors and retailers / dealers are not involved in informal selling.

Question 17

Pseudo sale is more vigorous than the controlled sale and much more revealing.

Question 18

Which of the following statements is NOT true regarding market testing?

A)There is a growing trend toward quicker,less costly market testing methods.
B)Test marketing is now a relatively minor market testing technique.
C)Test marketing,being more accurate is replacing scanner based methods.
D)Many firms have replaced the traditional test market with a product rollout.

Question 19

The speculative sale method can be used for conducting market testing for consumer packaged goods.

Question 20

Identify the situation under which market testing is most likely to be conducted.

A)The use tests went well and consumer interest is high.
B)Huge capital investments are required.
C)The company knows the business well and has been successful there.
D)Advertising is ready and successfully testeD.

Question 21

The direct marketing method of market testing is most likely used for _____.

A)industrial services
B)consumer durables
C)consumer packaged goods
D)consumer services

Question 22

Under which of the following situations market testing will be quick,if at all it takes place?

A)The competitors can take retaliatory action that will hurt the company.
B)The new product requires huge capital investments.
C)The company is planning to enter into a new industry by launching the product.
D)The consumer interest in the product is low.

Question 23

Which of the following statements is true regarding speculative sale?

A)It is useful in situations where the item is new and key diagnostics are needed.
B)It involves a lot of advertising.
C)It is used for projects with very high risk.
D)It creates a false buying situation and observes what the consumers do.

Question 24

(p.466e)Radiant Corp. ,a manufacturer of consumer products,primarily sells its products to the consuming unit by means of catalogs and mail.It tests its new product lines,simply by listing them in some of its catalogs and counting the orders.Identify the market testing method being used by Radiant.

A)Minimarkets
B)Simulated test markets
C)Direct marketing
D)Speculative sale

Question 25

Which of the following techniques combines virtual testing techniques with traditional simulated test market procedures?

A)Visionary shopper
B)BehaviorScan system
C)Minimarket
D)InfoScan

Question 26

Identify the method of market testing which is most likely to make use of rollouts.

A)Controlled sale
B)Pseudo sale
C)Full sale
D)Temporary sale

Question 27

_____ is a variation on minimarkets.

A)Micromarkets
B)Informal selling
C)Controlled-distribution scanner markets
D)Speculative selling

Question 28

Which of the following method of market testing is least likely to be used for industrial goods?

A)Simulated test marketing
B)Speculative sale
C)Informal selling
D)Minimarketing

Question 29

Which of the following is a method of market testing falling under the category of 'full sale'?

A)Direct marketing
B)Minimarketing
C)Test marketing
D)Stealth marketing

Question 30

Which of the following methods of market testing was a spinout from concept testing and comes very early in the development process?

A)Minimarketing
B)Rollout by trade channel
C)Direct marketing
D)Simulated Test Market

Question 31

Which of the following types of market testing relies upon asking potential customers if they would buy the product if the product were available,but does not require them to spend money or take a risk?

A)Pseudo sale
B)Controlled sale
C)Full salee
D)Informal sale

Question 32

InfoScan is best described as a:

A)direct marketing method.
B)technique of pseudo sale.
C)virtual concept testing technique.
D)method of market test design and data gathering.

Question 33

Controlled-distribution scanner markets (CDSMs)are based on scanner technology and have received much attention in the _____ field.

A)industrial services
B)consumer packaged goods
C)consumer durables
D)industrial goods

Question 34

The role of simulated test marketing in A-T-A-R forecasting is to provide estimates of _____.

A)market units
B)availability
C)costs and prices
D)trial and repeat purchasing

Question 35

The speculative sale approach is most likely to be used in all of the following situations,EXCEPT where:

A)the new product work is technical,entrenched within a firm's expertise,and only little reaction is needed from the marketplace.
B)industrial firms have very close downstream relationships with key buyers.
C)the adventure has very high risk and thus a costlier method is defendable.
D)the item is new and key diagnostics are needeD.

Question 36

The distinguishing feature of ASSESSOR'S A-T-A-R is its ability to:

A)estimate market units and availability.
B)use heuristics to derive the forecasts.
C)compare A-T-A-R with a preference model to predict market share.
D)combine A-T-A-R with virtual concept testing to predict net profits.

Question 37

Identify the controlled sale market testing method that involves outlets even if on a very limited basis.

A)Direct marketing
B)Speculative sale
C)Informal selling
D)Minimarketing

Question 38

Which of the following methods can be used for market testing consumer packaged goods?

A)Speculative sale
B)Simulated test marketing
C)Informal selling
D)Direct marketing

Question 39

Under which of the following conditions the marketplace may not be good for market testing?

A)While launching a pharmaceutical product
B)When the company is entering into a new industry
C)When the target market is extremely small
D)In the case of global launches

Question 40

Which of the following is a controlled sale market testing method that involves real purchasing under some real competitive environment?

A)Rollout
B)Direct marketing
C)Speculative Sale
D)Simulated test market

Question 41

Today test marketing has been largely replaced by _____.

A)simulated test marketing
B)rollouts
C)informal sales
D)minimarkets

Question 42

Explain test marketing with an example.

Question 43

Which of the following market testing methods is sometimes called tiered marketing or limited marketing?

A)Rollout
B)Minimarket
C)Simulated test marketing
D)Informal selling

Question 44

What typically happens in this method of market testing is that a firm first picks,say,two cities in which to sell the new product and two cities very similar to the first where the product is not sold.All four are watched closely and stocking and sales of the new product are audited.Identify the market testing method in discussion.

A)Test marketing
B)Informal selling
C)Simulated test market
D)Speculative sale

Question 45

Which of the following tests all market variables-including competition and the trade?

A)Test marketing
B)Minimarkets
C)Speculative sales
D)Simulated test markets

Question 46

Which of the following statements is true regarding rollout?

A)Today rollout is increasingly being replaced by test marketing.
B)The knowledge obtained from rollout is significantly less than that obtained from test marketing.
C)Almost all the problems in test marketing are present in the rollout method.
D)Rollout is sometimes called tiered marketing.

Question 47

What are the two important insights that can be gained from market testing?

Question 48

Firms that want to use two or more market testing techniques are more likely to begin with a _____ method.

A)minimarket
B)pseudo sale
C)direct marketing
D)full sale

Question 49

Which of the following statements is true regarding test marketing?

A)Test market results are projectable.
B)We can control all environmental factors.
C)It offers the most abundant supply of information.
D)Test marketing is cheap and quick.

Question 50

A rollout as compared to test marketing:

A)cannot provide as much datA.
B)gives competitors more time to beat the firm to national market.
C)allows the firm to minimize losses in case of failure.
D)takes more time to go national.

Question 51

Write a short note on minimarkets.What are its advantages?

Question 52

Discuss the various problems associated with simulated test markets.

Question 53

A firm desiring to use two or more market testing techniques is likely to follow its early,first effort with some type of _____ method especially in the case of informal selling for industrial firms or minimarkets for consumer firms.

A)controlled sale
B)pseudo sale
C)speculative sale
D)simulated test market

Question 54

Today,test marketing is used primarily to:

A)make go / no-go launch decisions.
B)fine-tune marketing plans.
C)simulate sales.
D)predict profits.

Question 55

Briefly describe the speculative sale method.