If market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch.

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The statement describes a sequence in new-product development where market testing yields positive results and, with those encouraging findings, the firm proceeds to roll out the product to the entire market. This aligns with the conventional stage-gate model in marketing, where market testing serves as a validation step before a full-scale launch. 
Option 1: True. Since market testing positive results generally indicate that the product has demonstrated market demand and acceptable performance in a limited setting, it is appropriate to move toward the full product launch to capitalize on the validated potential. This option correctly reflects the standard progression from testing to market-wide introduction. 
Option 2: False. This would imply that positive market testing does not justify a launch, or that a launch occurs without market testing, which contradicts typical product development practice. The claim that testing does not lead to launch overlooks the purpose of market testing as a decision milestone guiding introductions. 
Option 3: (If considering variations) Some interpretations might suggest launching prematurely despite mixed results; however, the given statement ties a positive market test directly to readiness for a full market introduction, making the claim incompatible with premature or unvalidated launches. 
Option 4: (If considering edge cases) Another misreading could be that market testing is the sole determinant of launch timing, ignoring other factors like production capacity, distribution readiness, or strategic alignment; still, the core assertion about “positive results leading to a launch” is consistent with standard practice, so this option would not accurately characterize the described scenario.

If market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch.

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