A virtual speaker demonstration system is disclosed that permits a retail outlet to use a reference speaker to demonstrate the performance of multiple different demonstration speakers. A user interface permits a user to select a demonstration speaker and signal processing is performed so that the output from the reference speaker simulates the output of the selected demonstration speaker. The invention provides benefits to all three of the consumer, the retailer, and the manufacturer. The consumer can listen to and compare multiple demonstration speakers easily and conveniently from the same reference speaker. The retailer to use a single (or few) reference speaker to demonstrate the performance of multiple demonstration speakers, saving costs and space. The manufacturer to be able to display and demonstrate to consumers a broader range of the manufacturer's product line.