When consumer product market tests are created, what four key decisions must be made, and why?
What will be an ideal response?
1. Where: The location of the market test is based on how well it reflects the potential target markets. Most market tests involve somewhere between two and five cities to mitigate regional differences in purchase patterns (if there are any).
2. How long: Most test markets run less than a year. The test should be long enough to include several purchase cycles. With many consumer products, purchase cycles are relatively short (days or weeks) so there is less need for a long market test.
3. Data: Critical information needed to make necessary decisions must be identified. Management frequently wants to know how long it takes for the product to move through the distribution system, tracking the product from manufacturing plant through to the point of sale (matching inventory as it leaves the plant with store sales). In addition, buyers are interviewed on their product experience.
4. Decision criteria: Metrics for further action must be identified. At this stage it is difficult to pull a product, but if the product fails in the market test, management is faced with a difficult decision-drop the product or send it back for major redesign. If the product is a success, then the product launch decision is much easier.
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a. nominal accounts only. b. both real accounts and nominal accounts. c. real accounts only. d. neither real accounts nor nominal accounts.
The greater the ________ of a purchase, the higher the consumer's level of involvement will be
A) perceived risk B) cognitive dissonance C) psychographics D) heuristics E) targeting
If an agent has no authority but nevertheless contracts with a third party, the principal can be held liable on the contract.?
Indicate whether the statement is true or false
Ultrahazardous activity is activity that:
a. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which can be eliminated by the exercise of the utmost care" and "is not a matter of common usage." b. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is not a matter of common usage." c. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which cannot be eliminated by the exercise of the utmost care" and "is a matter of common usage." d. "necessarily involves a risk of serious harm to the person, land, or chattels of another, which can be eliminated by the exercise of the utmost care" and "is a matter of common usage." e. none of the other choices are correct