When Hope Springs develops its flavored water additive and uses the college town where Gabbie and Justin are students to gauge if there is ample product interest, the company is engaged in a test market.

When Hope Springs develops its flavored water additive and uses the college town where Gabbie and Justin are students to gauge if there is ample product interest, the company is engaged in a standard test market.

standard test market

Explanation: Test marketing is applied by firms in order to determine how suitable a new product or campaign is before proceeding on a large scale. And so it helps in obtaining the success ratio of the newly launched product, customer satisfaction or acceptance, distribution requirements and material support for a full launch.

In a standard test market, a few number of representative audience or towns is selected for trial of the full marketing mix (product, price, place, and promotion) prior to a new product launch on a larger scale.

answer; buyer guide;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.