Question

why some companies do not uses test marketing?​

Answer 1

Small companies that use test marketing cannot always predict success. Products that sell locally or in several markets might not sell well in other geographical areas. ... Hence, results from test marketing are not necessarily projectable. Sometimes, companies just need to roll their products out to see how they do.

Answer 2

It is because the cost of new product launch will be higher and if it is not successful in the market, there could be risk of heavy loss. Therefore, to identify the consumer response to the new product, test marketing is performed, where it tests the entire marketing program.