Product that is not already available worldwide. Would Canada be a good test market for this...

Product that is not already available worldwide. Would Canada be a good test market for this product? Why, or why not?

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Expert Solution

Canada can be a good market for testing the products. One of the important reasons is:

One of the major factors affecting the demand of a good is the tastes and preferences of the consumers.

A country would be a good market to test the product if the country or countries where the product is to be launched has similar tastes and preferences. Given the geographical location, both USA and Canada share border and hence have similar tastes and preferences. Also given the way of advertising of both the nations like the social media etc is also similar, which means that they use same platforms for promotion of goods and services.

Another factor is that both these countries have same income levels and other such factors which are crucial for testing the product. If the country where the product is launched is poor, while it is tested in a developed country, the sales would differ.

But the market in Canada may not be effective market when a product is to be launched in a developing country or a country where the tastes and preferences are different from that of Canada. Hence it would be a good market to test the product only under certain conditions.

(You can comment for doubts)

Rahul Sunny answered 1 year ago

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