P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.
A) why many companies engage in crowdsourcing
B) one of the problems associated with test marketing
C) why prototypes are so important
D) how idea screening can make a product a commercial success
E) the importance of different sources for idea generation

Question

Quizplus · Accepted Answer

This situation demonstrates one of the potential drawbacks of test marketing, which is that competitors can quickly react and introduce similar products to capture market share.

P&G Introduced Duncan Hines Ready-To-Spread Frosting in a Small Geographic