Which statement is not true about simulated test markets?
A)While a firm's test marketing is in progress,competitors have an opportunity to beat it to the national market.
B)Competitors often take actions such as increasing their promotional efforts to contaminate the test marketing program.
C)Both A and B are not true about simulated test markets.
D)They yield mathematical estimates of market share based on initial reaction of consumers to a new product.

Question

Quizplus · Accepted Answer

Both statements A and B are not true about simulated test markets. In a simulated test market, the test is conducted in an artificial market rather than a real market. Competitors do not have the opportunity to beat it to the national market and cannot take actions to contaminate the program as they are not aware of the product launch. Simulated test markets yield mathematical estimates of market share based on initial reaction of consumers to a new product.

Which Statement Is Not True About Simulated Test Markets