A firm selects a test market city that it believes will give them very favourable results because it knows the media will publicize the "success" of the new test product. This may not yield the best test market city, but it would not be considered to be unethical.

Question

Quizplus · Accepted Answer

This would be considered unethical because it involves manipulating the test market results to create a false impression of the product's success. This could mislead investors, consumers, and other stakeholders, and ultimately harm the company's reputation and credibility. It is important to choose a test market city based on objective criteria, such as demographic characteristics, purchasing habits, and competition, in order to obtain accurate and representative results.

A Firm Selects a Test Market City That It Believes