Question 1

Latin square designs assume that interaction effects are significant.

Accepted Answer

This design assumes that interaction effects are expected to be minimal or nonexistent.

Question 2

A 3 x 3 factorial experiment requires six combinations of treatment groups.

Accepted Answer

It requires nine combinations of treatment groups (3 x 3 = 9).

Question 3

The manufacturer of the relatively higher-priced Dove chocolates introduced a lower-priced line of Dove chocolates with the intent of attracting consumers who did not normally purchase their higher-priced premium chocolates.However,most of the sales of the new product came from customers who would normally have purchased the existing higher-priced Dove products.This is an example of:
A)test-marketing
B)cannibalized sales
C)guerilla marketing
D)sales sabotage

Accepted Answer

This is an example of cannibalized sales, where the sales of a new lower-priced product come at the expense of sales of the existing higher-priced product from the same brand, instead of attracting new customers.

Question 4

Which element of the marketing mix can be examined with a test-market?
A)product
B)price
C)promotion
D)all of the above

Accepted Answer

A test market can be used to examine all elements of the marketing mix, including product, price, and promotion. It involves launching a product or service in a small geographic area to measure consumer response before launching it more widely. The test market can help a company refine its marketing mix to maximize chances of success.

Question 5

If salespeople in a test-market city arrange for more shelf-facings than would normally be available to the product under normal store conditions,the test-market has the problem of:
A)media isolation
B)unrealistic store conditions
C)overuse
D)self-contained trading area

Accepted Answer

By arranging for more shelf-facings than would normally be available to the product under normal store conditions, the test-market is creating unrealistic store conditions. This can skew the results of the test-market and provide inaccurate data on the product's performance in a real-world retail setting.

Question 6

Brad is a brand manager of a line of laundry detergent products in his company.His company's sales representative in Dayton,OH informed him that a competitor was conducting a test-market of a new line of strongly-scented laundry products.Brad knew from consumer research that consumers do not like overly strong scents,so he directed this sales representative to purchase all of the competitor's product in the stores in an attempt to make the product appear to sell well in the test-market so that the company will falsely believe that the product was successful.Brad's actions are called:
A)cannibalization
B)guerilla marketing
C)test-market sabotage
D)test-market deception

Accepted Answer

Brad's actions are called test-market sabotage, as he is intentionally interfering with the competitor's test-market results by purchasing their products to create a false impression of success.

Question 7

All of the following are factors to consider in test-market selection EXCEPT:
A)product price
B)population size
C)media isolation
D)competitive situation

Accepted Answer

Product price is not typically a factor in selecting a test market; instead, it is a characteristic of the product itself. Test-market selection usually focuses on demographic and market conditions like population size, media isolation, and competitive situation.

Question 8

The percentage of target market customers who purchased the product,which often is measured early in a test-market,represents:
A)market share
B)sales penetration
C)repeat purchases
D)market penetration

Accepted Answer

Market penetration refers to the percentage of the target market that has purchased the product, especially during the early stages of a test-market.

Question 9

In computing estimated market share for products for which repeat purchases are important in test markets,the correct formula is:
A)trial buyers - repeat purchase rate = market share
B)trial buyers + repeat purchase rate = market share
C)trial buyers/repeat purchase rate = market share
D)trial buyers x repeat purchase rate = market share

Accepted Answer

The formula for computing estimated market share for products with repeat purchases in test markets is to multiply the number of trial buyers by the repeat purchase rate to get the market share.

Question 10

Which of the following is a disadvantage of test-marketing?
A)cost
B)time
C)loss of secrecy
D)all of the above

Accepted Answer

Test-marketing can be costly, as it involves producing and distributing the product on a small scale. It also takes time to conduct and analyze the results, which can delay the product launch. Furthermore, test-marketing can reveal the company's product concept to competitors, which can result in loss of secrecy and potential copycats. Therefore, all of the above options are disadvantages of test-marketing.

Question 11

If a product is tried by 20 percent of the target market during test marketing,and the repeat purchase rate in this test market is 20 percent,the estimated market share for this product would be approximately:
A)0.4 percent
B)4 percent
C)40 percent
D)400 percent

Accepted Answer

The estimated market share can be calculated by multiplying the trial rate by the repeat purchase rate, which gives:

0.20 (trial rate) × 0.20 (repeat purchase rate) = 0.04 or 4%

Therefore, the estimated market share for this product would be approximately 4%. Option B is the correct answer.

Question 12

The average test-market requires about:
A)one month
B)six months
C)twelve months
D)two years

Accepted Answer

The answer of The average test-market requires about:
A)one month
B)six months
C)twelve...

Question 13

All of the following are broad uses of test-markets EXCEPT:
A)forecasting the success of a newly developed product
B)testing hypotheses about different options for marketing mix elements
C)identifying weaknesses in product designs or marketing strategies
D)determining the suppliers of raw materials used in the production of the product

Accepted Answer

Test-markets are not typically used to determine the suppliers of raw materials used in the production of the product. The other options listed are all common uses of test-markets.

Question 14

A scientific procedure that allows a new product to be tested under realistic market conditions is called a:
A)test-market
B)market segmentation study
C)TQM
D)simulated test

Accepted Answer

A test-market is a scientific procedure that allows a new product to be tested under realistic market conditions. This involves offering the product for sale in a limited market area, measuring consumer response, and gathering data to help make marketing decisions. Therefore, option A is the correct choice. The other options are not specific to testing a new product under market conditions.

Question 15

If salespeople in a test-market city spend an inordinate amount of time setting up and updating point-of-sale displays in supermarkets,this creates which type of problem?
A)overused test-markets
B)media isolation
C)overattention
D)self-contained trading areas

Accepted Answer

Overattention refers to a situation where salespeople focus too much on one aspect of marketing, such as setting up point-of-sale displays, to the detriment of other important elements. This can create problems such as misallocation of resources, neglect of other marketing channels, and unrealistic results in the test-market.

Question 16

When the gender of respondents (male,female)is thought to affect in important ways the dependent variable,an experimenter can attempt to block out the effect of gender on the results of the study.

Accepted Answer

Blocking is a technique used in experimental design to help control for the effect of variables that are known or suspected to influence the outcome of a study. If the gender of respondents is considered a variable that could have an impact on the dependent variable, the experimenter can use blocking to ensure that the effect of gender does not bias the results. This can be achieved by dividing participants into groups based on their gender and then randomly assigning them to experimental groups or conditions. By doing so, any differences in the outcome between male and female respondents can be attributed to the independent variable(s) being tested, rather than gender.

Question 17

A test-market that is too ____ may ____ sales because typically the early adopters of new products are the heavy users of the product.
A)short;overestimate
B)short;underestimate
C)long;underestimate
D)long;overestimate

Accepted Answer

A test-market that is too short may underestimate sales because typically the early adopters of new products are the heavy users of the product.

Question 18

Factorial designs allow researchers to measure interaction effects.

Accepted Answer

Factorial designs involve manipulating two or more independent variables, which allows researchers to measure interaction effects between these variables. This is one of the main advantages of using factorial designs in research.

Question 19

All of the following are ways of projecting test-market results EXCEPT:
A)ratio of test product sales plus overall company sales to industry sales
B)straight trend projections
C)marketing penetration x repeat-purchase rate
D)consumer surveys

Accepted Answer

The ratio of test product sales plus overall company sales to industry sales is not a standard method for projecting test-market results.

Question 20

Electronic test markets allow researchers to measure the impact of specific TV commercials on unit sales.

Accepted Answer

Electronic test markets use data from actual sales to measure the impact of specific advertising on sales, including the impact of TV commercials.

Quiz 12: Test Markets and Experimental Design

Latin square designs assume that interaction effects are significant.

A 3 x 3 factorial experiment requires six combinations of treatment groups.

Which element of the marketing mix can be examined with a test-market?

If salespeople in a test-market city arrange for more shelf-facings than would normally be available to the product under normal store conditions,the test-market has the problem of:

All of the following are factors to consider in test-market selection EXCEPT:

The percentage of target market customers who purchased the product,which often is measured early in a test-market,represents:

In computing estimated market share for products for which repeat purchases are important in test markets,the correct formula is:

Which of the following is a disadvantage of test-marketing?

If a product is tried by 20 percent of the target market during test marketing,and the repeat purchase rate in this test market is 20 percent,the estimated market share for this product would be approximately:

The average test-market requires about:

All of the following are broad uses of test-markets EXCEPT:

A scientific procedure that allows a new product to be tested under realistic market conditions is called a:

If salespeople in a test-market city spend an inordinate amount of time setting up and updating point-of-sale displays in supermarkets,this creates which type of problem?

When the gender of respondents (male,female)is thought to affect in important ways the dependent variable,an experimenter can attempt to block out the effect of gender on the results of the study.

A test-market that is too may sales because typically the early adopters of new products are the heavy users of the product.

Factorial designs allow researchers to measure interaction effects.

All of the following are ways of projecting test-market results EXCEPT:

Electronic test markets allow researchers to measure the impact of specific TV commercials on unit sales.