Test Marketing is like an experiment conducted in a field (real) setting, such as testing a new food product into a franchise restaurant chain. The following are all advantages of test marketing. Which one is NOT TRUE?
1) Testing a new product in one or two markets is cheaper than rolling out a new product into all available markets.
2) Testing a new product allows a company to check its potential success to determine whether to launch it more broadly.
3) When a new product is tested in a market, promotions, distribution and pricing can also be tested at the same time.
4) Test markets are easy and inexpensive to execute.
5) A test market can identify a failure early on and save the company millions of dollars.