Under what circumstances might it be wise for a company to invest in a test market?
A)when a new product requires a major investment
B)when the product is not working well
C)when management is sure of the marketing program
D)when the product risk is very low
E)when the cost of new-product development is very low

Question

Quizplus · Accepted Answer

It would be wise for a company to invest in a test market when a new product requires a major investment. Test marketing involves introducing a product in a limited geographic area or limited channels of distribution to determine its market viability before fully launching it. This can help a company determine how well the product is likely to perform in the market and whether it's worth investing the capital necessary to fully launch the product. Investing in a test market can help minimize the risk of launching a product that isn't successful, which is particularly important when the product requires a major investment.

Under What Circumstances Might It Be Wise for a Company