Question

What involves retailing a new product for a limited time in order to evaluate its attractiveness and to gain feedback from consumers before a final product is fully released?

1) Test marketing
2) Co-branding
3) Prototyping
4) Brand extension
5) Commercialization

Answer 1

The correct option is 1). Test marketing is the strategy of selling a new product for a limited time to assess its appeal and collect consumer feedback before a full market launch, aiding in product refinement and improvement.

Step-by-step explanation:

The marketing strategy that involves retailing a new product for a limited time to evaluate its attractiveness and gain feedback from consumers before it is fully released is called test marketing. This approach allows companies to assess the performance of their product in a real-world setting but on a smaller scale. This feedback can then be used for making improvements and adjustments before a final, wider market release. Test marketing can help prevent costly mistakes by understanding consumer preferences and the market potential. It serves as a crucial step in the design process, where after creating prototypes and exploring possibilities, companies test these prototypes to evaluate quality and make refinements based on the feedback received.