Practice Quiz

CLEP Marketing

Category - Research

Start a Study Session Sign up for Question of the Day
When GAP was conducting focus groups and surveys about a new online shopping feature, it alerted Forever21, which was able to develop and roll it out faster than GAP. This outcome is an example of
  1. An over cautious business decision
  2. Inefficient marketing
  3. A competitive advantage risk
  4. A marketing mix risk
  5. A test marketing risk
Explanation
Answer: E - When GAP was conducting focus groups and surveys about a new online shopping feature, it alerted Forever21, which was able to develop and roll it out faster than GAP. This outcome is an example of a test marketing risk. GAP’s focus groups and surveys are part of a test market evaluation. This carries the risk of alerting competitors to new offerings or features. In this case, Forever21 rolled out the online shopping feature faster than GAP, giving it competitive advantage and giving the impression of being pioneers.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz