What is a major benefit of test-markets as a quantitative forecasting method?
A) They provide realistic information on actual purchases rather than intent to buy.
B) They are quick and provide salespeople with an opportunity to explain their markets.
C) They are effective in situations with stable customer demand and environmental conditions.
D) They are useful for long-term predictions.

Question

Quizplus · Accepted Answer

Test-markets offer a realistic gauge of consumer behavior by tracking actual purchases instead of merely assessing purchase intentions. This method allows companies to observe how products perform in a controlled, yet real-world setting, providing valuable insights into consumer acceptance and demand.

What Is a Major Benefit of Test-Markets as a Quantitative