Neptune Inc., a cosmetics company, has come up with a new bodywash. The marketing department of Neptune conducts market research to determine an appropriate price for the product. The representatives of the company go to various malls and sell the product at different prices. The sales volume for each price is measured, and they are compared to determine the optimal price. This is an example of:

Question

Quizplus · Accepted Answer

This scenario describes the process of test marketing, which involves introducing a product in a limited area and measuring its sales performance to determine an optimal price. It is a form of real-world experimentation that allows companies to gather valuable data on consumer behavior and market response before launching the product on a larger scale. The other options, such as laboratory experimentation, drop-off surveys, mail panel surveys, and wireless phone surveys, do not match the process described in the scenario.