The process of offering a product for sale on a limited basis in a defined geographic area in order to gauge consumer reaction to the actual product is known as
A. selected controlled markets
B. store audits
C. standard markets
D. test markets
E. None of the above
Answer: (D) Test marketing is performed to see if consumers will actually buy the product. Additionally, changes can be made to the marketing mix variables in a controlled setting. Selected controlled markets are those markets in which the total test is conducted by an outside organization or agency. The tests are conducted by paying retailers for shelf space, guaranteeing distribution to the most popular test market(s), so (A) is incorrect. (B) is not the correct answer. Store audits are conducted by groups (such as A.C. Nielsen), measuring sales in grocery stores and the number of cases ordered by the stores. Standard markets (C) is also incorrect because standard markets are those test sites where companies sell a new product through normal channels, and then monitor the results. (E) is incorrect because there is a correct choice.