P&G introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods 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 act illustrates .
A)the variety of sources for idea generation
B)one of the problems associated with test marketing
C)why prototypes are so important
D)why many companies engage in test marketing
E)how idea screening can make a product a commercial success

Question

Quizplus · Accepted Answer

This situation highlights the problem of competition and timing associated with test marketing. P&G introduced their product in a small geographic area but General Foods quickly responded with a similar product that eclipsed the Duncan Hines product. This shows the risks of test marketing, as competitors can quickly respond and take market share.

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