Abstract
A manager, planning to commercialize a new product, requires market information to decide whether to launch the product and to make marketing-mix decisions. Full-scale test markets, in which the product is sold under real conditions for a length of time, are costly and risky. Many managers will begin with a pretest market method to obtain good quality information from customers in a relatively short period of time and at much lower cost. The pretest market filters out likely failures and allows the manager to focus on better market opportunities. While there are several variants, a typical pretest market involves simulating the customer's purchase behavior in a controlled setting. The customer usually takes the product home for trial, and likely repeat purchase rates are assessed. Here, we profile ASSESSOR and BASES, two of the most popular pretest market procedures. We conclude with a discussion of some of the newest trends in pretest markets, including the use of information acceleration in the forecasting of big-ticket items such as automobiles, and a mention of the most common criticisms of pretest markets. Keywords: pretest market models; awareness–trial–repeat model; information acceleration; ASSESSOR; BASES; NEWS
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
