Question

Which statement about test marketing is most accurate? Multiple Choice

a. The three main kinds of test markets are standard, controlled, and simulated.
b. Test marketing is less common for consumer packaged goods compared with other types of products.
c. Simulated test markets are most likely to alert competitors to a firm's plans.
d. Test marketing is a risk-free way to expose potential customers to new products.
e. Modified test markets are the least expensive and fastest type.

Answer 1

Simulated test markets are most likely to alert competitors to a firm's plans.

Step-by-step explanation:

The most accurate statement about test marketing is option c: Simulated test markets are most likely to alert competitors to a firm's plans. Test marketing involves introducing a new product or service to a selected group of consumers in a specific geographical area. Simulated test markets are virtual marketplaces created to replicate real-world market conditions and consumer behavior. However, since these simulations can be accessed by competitors, they may become aware of a firm's plans and potentially respond to them.