Testing Test Market Predictions

Abstract

Test marketing involves a number of assumptions. The most inherent assumption is projectability, i.e., the ability of the test areas to accurately represent the larger geographic region to which the test results will be applied. An experimental method is described which tests statistically the degree of confidence that may be placed on projected test market results. Marketers with access to the geographic pattern of their national sales can readily apply this technique for measuring the validity of test marketing for their own products.