Company A introduces a new product ABC and Company B rushes to market its own product XYZ,which eclipses product ABC in terms of sales.This act illustrates ________.
A) why many companies engage in test marketing
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 variety of sources for idea generation

Question

Quizplus · Accepted Answer

This act illustrates the problem of competition and the need for companies to quickly respond to new product introductions by competitors. This highlights the importance for companies to not solely rely on test marketing, as it may not reveal how a product will perform in the market once it faces competition.

Company a Introduces a New Product ABC and Company B