Besides its high cost, what is the other possible problem that test marketing is likely to face?

The decision to commercialize a product includes ordering materials and equipment.

The product's success may present a threat to other product extensions recently introduced by the company and thus spread its customers thin.

It exposes the new product and its marketing mix to competitors before its introduction. Thus, the element of surprise is lost.

Consumers may perceive the sales promotion, pricing, or advertising campaign as overzealous hard sell or even unfair trade practices.

Question $57$

$0\mathrm{.}3$ pts

Examples of fads include the Hula$-$hoop$($R$,$ Pet Rock $(R)$ Pok$$mon $,$ the yo$-$yo$,$ and Beanie Babies$($B$).$ A fad product usually doesn't have much utility, which is one of the reasons sales drop quickly after the initial public fascination subsides. Which is a characteristic of fads?

They can move through the entire cycle in weeks.

They typically register a gradual and unpredictable spike in sales.

They peak slowly but then register a rather abrupt decline.

They stay in the maturity stage for decades.