Question

The major objective of a ‘standard test market’ usually is ____________ .

a. To examine the effects of minor changes in marketing programs
b. To ‘forecast’ potential sales for new products prior to their commercialization
c. To test the effects of alternative advertisements for their ability to gain consumer attention and brand name recognition
d. To test the effects of price changes on sales revenue under ‘real market conditions.’
e. To test the effects of price changes on sales revenue under conditions in which competitors are not likely to know the test is being conducted.

Answer 1

"B"

Step-by-step explanation:

This is a form of market test in which a sample region is selected to test customers response to the introduction of a new product before it is fully launched.

It is mostly practiced by the manufactures of packaged goods due to its highly competitive nature ,short purchase cycle and low cost of switching products.

It enables sales performance to be measured ahead of full introduction as the marketers get a understanding of the potential market environment