Question

QN=17 P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This act illustrates ________.
a. why many companies engage in test marketing
b. one of the problems associated with test marketing
c. why prototypes are so important
d. how idea screening can make a product a commercial success
e. the variety of sources for idea generation

Answer 1

Answer:

The answer is: B) one of the problems associated with test marketing

Explanation:

Test marketing is an marketing experiment that involves actual stores and real life buying situations, usually the potential buyers are not aware of the test.

Some of the major disadvantages of test marketing are:

• They are expensive
• Time-Consuming
• Competitive Awareness: the competition might learn about our product and try to copy it or develop their own products.
• Produce inconclusive Results