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Consumer Market

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Engineering
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Trine University
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Running head: CONSUMER MARKET 1
Consumer Market
Name
Institutional Affiliation

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CONSUMER MARKET 2
1. Explain why consumer market testing might not always be beneficial.
Market testing enables businesses to determine the durability of their products as well as
identifying potential customer group and evaluation of sales and profit (Trott, 2008). However,
the process of testing might not necessarily yield anticipated results. First and foremost, the
process could prove expensive. Many companies test their initial ideas through focus groups.
The focus group could make the company spend a lot of money. The other expense comes about
through distribution, advertisement, and handling of defective products (Trott, 2008). The
employees who work full-time to see the realization of the product in question increases the cost
for the company. Also, if the product fails, a lot of the merchandise remains unsold.
2. Discuss the dilemma faced by all firms of trying to listen to customers’ needs and wants
and, yet, also trying to develop new products for those customers that they do not yet serve.
The firm faces the dilemma of developing new products and the rate at which the same fail.
In the consumer market, the dilemma increases as the consumers require new products bu the
rate at which the same fails is discouraging (Trott, 2008). Thus, the firm brings about a team of
psychologists and marketers to carry out customer research, which will help reduce the
frustration the developer would have while it comes to articulating the needs and wants of the
various groups.
2. Discuss the many reasons why so many new products fail. Are there additional
reasons?
Consequently, test-marketing could become time-consuming. The time for testing a product
could become extended as the firm seeks to evaluate sales and profits as well as patterns to
establish seasonal trends (Trott, 2008). Marketers also must examine the effect their advertising
has on consumers. Consumers also take time to become aware of the existence of a product in

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Running head: CONSUMER MARKET 1 Consumer Market Name Institutional Affiliation CONSUMER MARKET 2 1. Explain why consumer market testing might not always be beneficial. Market testing enables businesses to determine the durability of their products as well as identifying potential customer group and evaluation of sales and profit (Trott, 2008). However, the process of testing might not necessarily yield anticipated results. First and foremost, the process could prove expensive. Many companies test their initial ideas through focus groups. The focus group could make the company spend a lot of money. The other expense comes about through distribution, advertisement, and handling of defective products (Trott, 2008). The employees who work full-time to see the realization of the product in question increases the cost for the company. Also, if the product fails, a lot of the merchandise remains unsold. 2. Discuss the dilemma faced by all firms of trying to listen to customers’ needs and wants and, yet, also trying to develop new products for those customers that they do not yet serve. The firm faces the dilemma of developing new products and the rate at which the same fail. In th ...
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