Cellular Inc. makes a major breakthrough in cell phone technology and design. Their research and development department has created advanced micro-circuitry that is one hundred times more sensitive to cell signals than conventional cell phones. This means that there is almost never a break in cell phone signals even when the caller is several miles from what would be considered "in range" for conventional phones. The problem is that the new technology adds about $100 to the cost of the phone. Cellular Inc. must spend a considerable amount of funds to retool in order to produce the new phones. They decide to test market the new phones. The company is located in Toronto and several executives believe it would be less costly to run the test market in their own city. However, one of the marketing managers has argued for running at least two test markets; one in Guelph, Ontario and one in Red Deer, Alberta. What criterion for test market selection is the marketing manager using?

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The Answer of Cellular Inc. makes a major breakthrough in cell phone technology and design. Their research and development department has created advanced micro-circuitry that is one hundred times more sensitive to cell signals than conventional cell phones. This means that there is almost never a break in cell phone signals even when the caller is several miles from what would be considered "in range" for conventional phones. The problem is that the new technology adds about $100 to the cost of the phone. Cellular Inc. must spend a considerable amount of funds to retool in order to produce the new phones. They decide to test market the new phones. The company is located in Toronto and several executives believe it would be less costly to run the test market in their own city. However, one of the marketing managers has argued for running at least two test markets; one in Guelph, Ontario and one in Red Deer, Alberta. What criterion for test market selection is the marketing manager using?