Final answer:
False. Time spent in test marketing cannot benefit a firm's competitors.
Step-by-step explanation:
False. Time spent in test marketing cannot benefit a firm's competitors. Test marketing is a process where a company introduces its product to a small group of consumers to gather feedback and assess the market potential. It is done in a controlled environment and usually involves the target market segment. During test marketing, a firm gains insights into consumer preferences, product performance, and marketing strategies, which can help the firm refine its product and marketing approach before a full-scale launch. However, this information is not directly shared with competitors, and the firm can use it to gain a competitive advantage by making necessary adjustments based on consumer feedback.