Looking for the answer to the question below related to Entrepreneurship Development and Management ?

Idea of new product is tested in potential consumers to determine consumer acceptance at ______________ stage.

 Options:

A. Concept. B. Product development. C. Test marketing. D. Commercialization.

 

The Correct Answer Is:

• C. Test marketing.

Answer Explanation:

A. Concept:

The concept stage is where an idea for a new product is initially formulated and explored. It involves identifying a potential product or service and defining its basic features, benefits, and target market.

At this stage, the idea is still in its infancy and has not yet been tested with consumers. It’s primarily focused on generating and refining the initial concept.

B. Product development:

The product development stage follows the concept stage and involves designing and creating a prototype or a more concrete version of the product.

During product development, the focus is on refining the product’s design, engineering, and functionality based on the initial concept and any feedback from potential consumers.

Consumer acceptance is typically not fully assessed at this stage, as the product is still in the process of being developed and refined.

D. Commercialization:

The commercialization stage occurs after a product has been fully developed and is ready to be launched into the market.

This stage involves activities such as marketing, distribution, and sales to introduce the product to consumers and generate revenue.

Consumer acceptance is certainly a critical factor at this stage, but it’s not the primary focus of commercialization. The primary goal is to successfully bring the product to market.

C. Test marketing:

Test marketing is the stage where a company tests its product or concept with a smaller, targeted group of consumers before a full-scale launch.

During test marketing, a company typically releases the product in a limited geographic area or to a specific target audience to gauge consumer reactions and acceptance.

Consumer acceptance is the central focus of test marketing, as it helps the company gather valuable feedback and insights to refine the product, pricing, and marketing strategy before a full-scale commercial launch.

In summary, the correct answer is C. Test marketing because it is the stage where consumer acceptance is specifically assessed by releasing the product to a small group of consumers for testing and feedback.

The other stages (Concept, Product development, and Commercialization) have different primary objectives and do not directly involve consumer acceptance testing in the same way that test marketing does.

• Seed capital assistance ______________.