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Test-marketing is described as which stage of new-product development?
AThe first stage, where goals for the product are set
BThe acid test, where the product meets competition
CThe rollout, where the product goes to every market
DThe screening, where weak concepts are thrown out
Answer & Solution
Correct answer: B. The acid test, where the product meets competition
1. Test-marketing means testing the product among potential users.
2. It lets management judge various strategies and see how well the parts of the mix fit together.
3. The product is put into the marketplace and the manufacturer sees how it performs against competition.
4. That is why test-marketing is called the acid test of new-product development.
5. Companies that skip it run a strong risk of product failure.
6. Goal setting and screening happen earlier, and rollout comes only after test-marketing is passed.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.7 Creating Products That Deliver Value_
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