How does a company typically use feedback obtained from test marketing?

• A. To refine the product or marketing strategy before a full-scale launch
• B. To set the company's dividend policy
• C. To determine the company's tax liability
• D. To finalize the annual financial statements

Answer: (A)

Verified step by step guidance

1. Understand the purpose of test marketing: Test marketing is a process where a company introduces a product or service to a limited audience to gather feedback and insights before a full-scale launch.
2. Identify the primary goal of test marketing: The main objective is to refine the product or marketing strategy based on the feedback obtained from the test market.
3. Eliminate irrelevant options: Setting dividend policy, determining tax liability, and finalizing annual financial statements are unrelated to the purpose of test marketing.
4. Focus on the correct application: Feedback from test marketing helps the company make adjustments to the product design, pricing, promotional strategies, or distribution channels to better meet customer needs.
5. Conclude the correct answer: The company uses feedback from test marketing to refine the product or marketing strategy before a full-scale launch.