Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
A) when the new product requires a major investment
B) when management lacks confidence in the new product
C) when management lacks confidence in the marketing strategy
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low

Question

Quizplus · Accepted Answer

If the costs of developing and introducing the product are low, the company may decide to skip test marketing to save on additional costs. Test marketing can also be skipped if the product has no substitutes and is new in its category, but this is less likely to be the most common reason for skipping test marketing. Choosing not to do test marketing because the product requires a major investment, because management lacks confidence in the new product, or because management lacks confidence in the marketing strategy are all risky decisions that could result in the failure of the product.

Which of the Following Is the Most Likely Circumstance for a Company