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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

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