Final answer:
McDonald's strategy of offering the new hamburger in three southern US cities is known as market testing, an approach to evaluate the potential success of a product in a limited market before a full-scale national launch.
Step-by-step explanation:
In order to examine the potential success of its 1/3-pound Angus hamburger, McDonald's started offering and promoting the product in three southern US cities. This initiative is an example of market testing, a stage in the product development process where a product is released to a limited market to gauge its viability and performance prior to a wider release.
Market testing allows businesses to collect data on sales performance, customer feedback, and market acceptance, which can highlight areas for improvement or indicate potential success. By starting in just three cities, McDonald's can analyze the market response without the risks associated with a full-scale national launch.
This practice contrasts with prototype testing, where products are typically evaluated internally or in controlled settings, often before market testing. The objective is to refine the product based on functionality and design rather than market performance.