Question

Idea of new product is tested in potential consumers to determine consumer acceptance at which stage. Select one: a. Concept. b. Product development. c. Test marketing. d. Commercialization.

Answer 1

Answer:

A thought of new product is examined among potential consumers to determine consumer acceptance at the concept state. New product is designed according to the need of the potential buyers. Thus, at the concept stage or planning stage, a thought of new product is examined.

Answer 2

Test marketing is the stage where the new product is tested in potential consumers to determine consumer acceptance.

• It is a kind of experiment done by various firms to carefully analyze how the product would be accepted by the consumer and what should be the marketing strategy.

• It helps to improve and learn about the product.

• It helps understand the revenue and the expenditure and analyze the market.

• Launching a new product can be risky if done on a large scale so providing free samples or exhibitions and trade fairs can help to understand consumer behavior.