Why do most firms consider test marketing essential for new products?
A)The high price of failure simply prohibits the widespread introduction of new products without testing.
B)The speed,safeness,and reliability of test marketing is higher than that of simulated market testing.
C)The ability of test marketing to evaluate consumer preference for a new product prior to developing a prototype increases its importance.
D)The decision to test a product sets several tasks in motion,such as ordering product materials,starting production,building inventories,and advertising to potential customers.

Question

Quizplus · Accepted Answer

Test marketing is essential for new products because it helps reduce the risk of failure. By testing the product in a controlled market, businesses can assess consumer response, tweak the product, and make changes before launching it on a larger scale. The cost of introducing a new product without testing it can be very high, and firms do not want to risk wasting resources on products that are not viable.

Why Do Most Firms Consider Test Marketing Essential for New