Which of the following statements is true regarding speculative sale?
A)It is useful in situations where the item is new and key diagnostics are needed.
B)It involves a lot of advertising.
C)It is used for projects with very high risk.
D)It creates a false buying situation and observes what the consumers do.

Question

Quizplus · Accepted Answer

Speculative sale is useful in situations where the item is new and key diagnostics are needed. This method involves presenting a product to potential customers to evaluate their response and interest before launching it in the market. This helps companies to better understand the market for their product and make necessary adjustments before investing in mass production. Speculative sale may involve advertising, but it is not a necessary component. It may also be used for projects with moderate risk, not just high risk.

Which of the Following Statements Is True Regarding Speculative Sale