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A comparison of test marketing practices of large and small consumer goods manufacturing firms

Bhagaban Panigrahi (Professor of Marketing, Department of Entrepreneurial Studies, Norfolk State University, 700 Park Avenue, Norfolk, Virginia 23504, USA)
Fred O. Ede (Dubai University College, Dubai, UAE)
Stephen Calcich (King Fahd University of Petroleum & Minerals, Dhahran, Saudi Arabia)

Management Research News

ISSN: 0140-9174

Article publication date: 1 August 2003

Abstract

Data collected from 202 large and 92 small consumer goods manufacturing firms were analysed to examine the perceptions and experiences of these companies with test marketing as part of their new product development strategy. Seventy six per cent of the large companies and twenty four per cent of the small firms in the study test marketed their new products before full‐scale introduction. Chi‐square analysis indicated a relationship between firm size, type of business/industry, the scope of marketing operations, and whether the firm conducted test marketing or not. Cost, time constraints, and the generic nature of the product were the most prominent reasons cited by all firms for not conducting test marketing. In addition, small firms cited their size as amajor reason they did not engage in test marketing.

Keywords

Citation

Panigrahi, B., Ede, F.O. and Calcich, S. (2003), "A comparison of test marketing practices of large and small consumer goods manufacturing firms", Management Research News, Vol. 26 No. 6, pp. 1-20. https://doi.org/10.1108/01409170310783493

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MCB UP Ltd

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