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A Test Market For A New Kellogg’S Cereal Is An Example Of

A Test Market For A New Kellogg’S Cereal Is An Example Of


A. hypothesis generation.
B. deviation test.
C. experiment.
D. observational data creation.

The Correct Answer Is:

  • C. experiment.

Explanation of correct answer.

Correct Answer: C. Experiment

An experiment is a scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact. In this case, conducting a test market for a new Kellogg’s cereal involves implementing a controlled study to gauge consumer response, preferences, and purchasing behavior.

Here’s why “experiment” is the correct option:

i. Hypothesis Testing:

In the context of the test market for a new Kellogg’s cereal, there is likely an underlying hypothesis that by introducing this new cereal, it will gain popularity and achieve sales targets.

The experiment involves collecting data on consumer reactions, sales figures, and other relevant metrics to evaluate if the hypothesis holds true.

ii. Controlled Conditions:

Experiments are conducted under controlled conditions to isolate the effects of specific variables. In the test market scenario, various factors like pricing, packaging, promotion strategies, and distribution channels can be controlled and manipulated to observe their impact on consumer behavior.

iii. Data Collection and Analysis:

Rigorous data collection methods are employed, such as surveys, sales data, and consumer feedback, to gather empirical evidence about how the new cereal is received by the market.

This data is then analyzed statistically to draw conclusions about the success or failure of the new product.

iv. Cause-and-Effect Relationship:

Experiments aim to establish a cause-and-effect relationship between variables. In this case, Kellogg’s wants to understand if introducing the new cereal is the cause of any changes in consumer behavior or market dynamics.

v. Replicability:

Experiments should be designed in a way that allows other researchers or companies to replicate the study to verify the results. The methodology and data collection process should be well-documented and transparent.

Now, let’s examine why the other options are not correct:

A. Hypothesis Generation:

Hypothesis generation is the initial step in the scientific method, where researchers propose a tentative explanation for a phenomenon. It involves brainstorming and formulating a hypothesis, which is essentially an educated guess or a proposed explanation that can be tested.

In the context of introducing a new Kellogg’s cereal, hypothesis generation would involve the development of a conjecture, such as “Introducing this new cereal with unique flavor profiles will lead to increased consumer interest and higher sales.” This hypothesis would serve as the foundation for conducting an experiment, which in this case would be the test market.

However, it’s crucial to understand that hypothesis generation is a precursor to the actual experiment. It is the formulation of an idea that is yet to be tested. The experiment involves systematically collecting data to either support or refute the hypothesis. Therefore, while hypothesis generation is a vital step in the scientific process, it is not the experiment itself.

B. Deviation Test:

“Deviation test” is not a standard term in experimental design or the scientific method. It doesn’t accurately describe the process of conducting a test market for a new product.

In experimental design, there are various types of tests and analyses conducted to evaluate data, but “deviation test” is not a recognized term in this context. The term may be a misnomer or a conceptual misunderstanding.

In the context of a test market for a new cereal, the focus is on gathering data about consumer behavior, preferences, and purchasing patterns. This involves setting up controlled conditions, manipulating variables, and collecting empirical evidence, which aligns with the definition of an experiment.

D. Observational Data Creation:

Observational studies involve observing subjects in their natural environment without any intervention or manipulation of variables. This approach is often used when it’s not feasible or ethical to conduct experiments with controlled conditions.

In a test market scenario for a new cereal, observational data creation would imply simply observing consumer behavior in existing markets where the new cereal is introduced, without making any intentional changes or interventions. This is not the case in a test market, where various aspects like pricing, marketing strategies, and distribution channels are intentionally manipulated to study their effects.

Therefore, a test market for a new Kellogg’s cereal does not fall under the category of observational data creation. Instead, it is an experimental approach aimed at systematically testing the market response to specific marketing strategies and product attributes.

Conducting a test market for a new Kellogg’s cereal is best described as an experiment due to the controlled conditions, hypothesis testing, and data-driven approach employed to evaluate the product’s market potential.

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