Hypotheses Essay Example | Topics and Well Written Essays - 500 words - 1

Hypotheses - Essay Example o setting prices that are lower than the competitors’ selling prices, the company must exert extra efforts to generate future customers’ demands for the company products. Customers prefer buying the lower priced products, all other factors being of equal importance (Bowman, 2010). Further, the next information needed is the advertising and promotion budget. With a higher budget, more target customers are reached. Consequently, more advertisements will persuade more target customers to try the new company product, compared to allocating a minimal advertising budget (Bowman, 2010). Furthermore, the marketing study must include the competitors’ prices. The customers’ prices will influence the demand for the company’s products. The competitors may institute cut-throat competition pricings, selling products at the lowest market price. The competitors are hoping that the cash-strapped and price-conscious target clients will prefer the lowest priced product in the market (Bowman, 2010). Moreover, the market test will show the current demand for the product. The company must determine whether the current competitors are supplying all the needs of the target markets. The current demand will indicate whether the market is saturated. Compared to a target market where all the competitors are not able to current supply the target markets’ present and future product demands, It is more difficult to sell a product in a saturated market because all the customers’ demand are presently met (Bowman, 2010). Further, the product quality must be determined. A poor quality product will generate low demand and higher product returns. However, high quality products will generate high customer demand. Quality affects the sales output (Bowman, 2010). Furthermore, location plays an important role in generating sales (Bowman, 2010). The product must be sold in places that customers can easily access. To save on transportation, customers will prefer buying from the nearest