Data Analysis and Compilation
After gathering the information from desk and field research the raw data must be compiled so that the taxonomic analysis can be performed and data can be broken up into respective parts and segments. This can be achieved in the following manner: Keeping on revisiting and focusing on the ultimate objective of the research and […]
Multi Level Marketing vs. Pyramid Selling
Amongst the different methods of direct selling, Multi Level Marketing occupies a prime place simply because of the fact that it is growing substantially and continually all over the world. Every day people are joining the network to become distributors and thousands have become millionaires thanks to the network. If you are looking to start […]
B2B Exchanges Evolved Over Time
We are all familiar with the online buying on the internet. In fact with most people in developed countries, ordering groceries, online shopping as well as payment of utility bills and online banking has become a part of life. Internet we can say is a virtual global market. There are several types of businesses that […]
Brand Value Measurement – Models for Calculating Brand Value
Brands have a certain value in the market as well as in the balance sheets of the organization that owns the brand. This is a matter that has been agreed upon by the industry. The accounting of the brand value and the methodology for calculation of the brand value is widely debated. When organizations pay […]
Organization’s Vision and Global Strategy
The most important and widest degree of business objective is termed as the vision of the organization. This is a declaration of large ambition. It concerns with the position that the organization expects to achieve in the future. The vision is related to the strategic intent of the organization. It is an effort by managers […]
Concept testing is the process of testing new or hypothetical products or services before they are launched. The testing is intended to screen a number of concepts to identify the strongest ones for progression, to improve/refine the base product or service proposition, and/or to forecast their likely success.
Concept testing is mainly used for go/no-go decision for a new product. This decision itself may have several aspects. Below are some examples of situations in which this study finds its usage:
The process of concept testing involves stages such as defining the goal of the study, choosing the sample population, deciding upon a survey format, communicating the concept, measuring consumer response and interpreting the results. Hence the steps are synonymous of most marketing research methods that we had seen in the previous modules.
The expected outcome of the study is to capture the consumer purchase intent. Broadly the questionnaire designed for the survey has 3 main sections though they can vary depending on the product and the research company.
Screener questions are asked to ensure that only valid responses are processed. Let us consider that a company wants to launch a new battery operated scooter/electric bike for college going students (new market).
An important question in the demographics section should be:
If the student stays within 5 miles of the campus, he might not need the scooter at all. Similarly, if he stays too far away, a scooter might not be the optimum mode for commuting. So again, the student must be eliminating while consolidating the results.
Also known as communicating the concept, the new product idea is described to the respondents using several techniques such as:
After describing the product by using one of the applicable methods mentioned above, the purchase intention of a potential consumer can be checked by using a simple likert scale:
❏ Definitely won’t purchase
❏ Probably won’t purchase
❏ Not sure
❏ Probably would purchase
❏ Definitely would purchase
Sources of Error in tested results
Though concept testing predicts the acceptability of a new product fairly accurately, the results may be skewed either positively or negatively in the following situations:
In a nutshell, the goal of concept testing is to develop, refine and nurture new product and service initiatives around solid consumer insights with a view to reducing the probability of failure and increasing the probability of a successful launch and in-market performance.
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