The city a firm chooses as its test market should reflect the demographic and other characteristics of the whole nation only if that is an accurate representation of the producer's intended market for the product.

Question

Quizplus · Accepted Answer

The purpose of a test market is to gather information on how a product will likely perform in a larger market. If the test market accurately reflects the characteristics of the intended market, the information gathered will be more useful and reliable. However, if the intended market is different from the whole nation in terms of demographic and other characteristics, it may be more appropriate to choose a test market that is more representative of the intended market.

The City a Firm Chooses as Its Test Market Should