Which of the following statements is true about the forecasting technique known as the "test market"?
A) Tests must be conducted in dozens of markets across the country, making the technique both time-consuming and expensive.
B) It provides realistic information on actual purchases rather than on customers' intention to buy.
C) It involves giving out free samples and surveying consumers after they've tried or used the product.
D) It is a qualitative technique.

Question

Quizplus · Accepted Answer

Test markets provide realistic information on actual purchases rather than on customers' intention to buy, offering valuable insights into how a product performs in a real-world setting. This method focuses on observing actual consumer behavior in a controlled market environment.

Which of the Following Statements Is True About the Forecasting