Research Design - Test Marketing - Types of Test Markets

5 important questions on Research Design - Test Marketing - Types of Test Markets

In which four types are test markets classified into?

Test markets are classified into four types: standard, controlled, electronic, and simulated

What is a standard test market?

A standard test market is one in which the firm tests the product or marketing-mix variables through the company’s normal distribution channels

What is a controlled test market?

A controlled test market is one that is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors
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What is an electronic test market?

An electronic test market is one in which a panel of consumers has agreed to carry identification cards that each consumer presents when buying goods and services

What is a simulated test market?

A simulated test market (STM) is one in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume

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