Before Proctor & Gamble introduced its Easy-Up disposable training pants to the European market, it test marketed the new product in Greece and in regions of Scandinavia in order to gauge demand. P&G used test markets as a:
A) sales forecasting tool.
B) method to correlate buying trends.
C) customer sales-composite.
D) market-factor analysis.
E) market share index predictor.

Question

Before Proctor & Gamble introduced its Easy-Up disposable training pants to the European  market, it test marketed the new product in Greece and in regions of Scandinavia in order to gauge demand. P&G used test markets as a:
A) sales forecasting tool.
B) method to correlate buying trends.
C) customer sales-composite.
D) market-factor analysis.
E) market share index predictor.

Quizplus · Accepted Answer

Test markets are commonly used as a sales forecasting tool by companies to estimate how well a new product will perform in a larger market by observing its performance in a smaller, controlled setting. This allows the company to make adjustments and predict demand more accurately before a full-scale launch.

Before Proctor & Gamble Introduced Its Easy-Up Disposable Training Pants