Question

A company can test market a product in order to evaluate decisions about e.g, pricing and advertising. In order get reliable information, the test market study should be conducted in a city ____________________________.

Answer 1

Options:

Where the are only local retail chains

with limited to no competition

where the demographics of the population is representative of the overall US population

consumers are used to test market studies

that has media spillover from other cities to increase media alternatives

Answer:Where the demographics of the population is representative of the overall US population.

Explanation: Test marketing is the process adopted by marketers in order to evaluate the general acceptability levels of a product, it helps marketers and product development officers to understand the various product parameters such as pricing, advertising etc.

TEST MARKETING SHOULD BE DONE WITH A SAMPLE POPULATION WHICH REPRESENTS THE DEMOGRAPHICS OF THE TARGET MARKET WHICH CAN BE THE UNITES STATES OF AMERICA IR ANY OTHER COUNTRY.

Answer 2

Answer:

The test market study should be conducted in a city "where the demographics of the population is representative of the overall US population". This is a typical market condition, because of the high number of population involved.

Explanation: Test marketing a product is the process of evaluating the market price and acceptability of a product. This is mostly done in a city with an expected market environment which has a high population for the product. This product is taken to the market, and observe how consumers sees the product, and what price should be fixed for the product to be marketable.

In test marketing a product, the typical market for such product should be choosed, so that a better evaluation can be achieved. For example when you want to test market a cosmetic product, it won't be a better idea to take it to a zoo or a place where native condiments are sold, with a low number of population, because any evaluation gotten from such place may not give the product a better decision.