Why do most firms consider test marketing essential for new products?
a. The high price of failure simply prohibits the widespread introduction of new products without testing.
b. The speed, safeness, and reliability of test marketing is higher than that of simulated market testing.
c. The ability of test marketing to evaluate consumer preference for a new product prior to developing a prototype increases its importance.
d. The decision to test a product sets several tasks in motion, such as ordering product materials, starting production, building inventories, and advertising to potential customers.
ANSWER: a
The high price of failure simply prohibits the widespread introduction of new products without testing. Despite various cheaper, safer, and faster alternatives, most firms still consider test marketing essential for new products.
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