Concept testing is important because it can
A) help the firm refine the promotional plans.
B) lead to immediate rollout of the final product.
C) help a firm avoid the costs of unnecessary product development.
D) reduce the potential loss of sales during the decline stage.
E) increase product development costs.

Question

Quizplus · Accepted Answer

Concept testing helps a firm avoid the costs of unnecessary product development by gathering feedback from potential customers before investing time and money into creating a product that may not be successful in the market. It can also help the firm to refine the product or promotional plans based on customer feedback, leading to more successful product development and rollout. However, concept testing does not necessarily lead to immediate rollout of the final product and can actually reduce potential loss of sales during the decline stage by ensuring that the product meets customer needs and preferences. Finally, concept testing should not increase product development costs if carried out effectively.

Concept Testing Is Important Because It Can