A company that makes baked goods created a new peppermint-chip cookie.

QUESTION

A company that makes baked goods created a new peppermint-chip cookie. Before the firm launched the product nationally, with its other products, it first sold the cookies at five select supermarkets in each of five major cities.

What was the company doing?
What will be an ideal response?

ANSWER

Answer: The company was test marketing the product. Test marketing is the process of testing products among potential users. That is, you try out a sample of the potential product among the target population to see what they think of it.
Explanation: The company was test marketing the product. Test marketing is the process of testing products among potential users. That is, you try out a sample of the potential product among the target population to see what they think of it.