ch. 4 // Test Markets

criteria for selecting test market cities

1. representativeness 2. degree of isolation 3. ability to control distribution and promotion

controlled test market

conducted by outside research firms that guarantee the distribution of the product through pre-specified types and number of distributors

electronic test market

consumers agree to carry iD cards that each consumer presents when buying goods/services.

standard test market

firms test the product or marketing mix variables through the company's normal distribution channels

simulated test market

test markets with a limited amount of data on consumer response to a new product; fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

test marketing

the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting. Used to test new advertising, promotions, products, pricing, etc.

use of test markets

to test variations in the marketing mix for a product or service.