Regarding new-product development, market tests:
A) are used mostly for durable products because of their high production costs and risks.
B) seek customer reactions to ideas-not actual products.
C) should test the product and specific marketing mix variables.
D) are not very costly, but take a long time to do.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Market tests should not only test the product, but also specific marketing mix variables such as pricing, promotion and distribution. This helps to evaluate the overall potential success of the new product in the market. Option A is incorrect because market tests can be used for both durable and non-durable products. Option B is incorrect because market tests are conducted with actual or prototype products, not just ideas. Option D is incorrect because market tests can be costly and time-consuming, depending on the scope and scale of the test.

Regarding New-Product Development, Market Tests