Conjoint Analysis – Meaning, Usage and its Limitations
Introduction During the sixties, when researchers tried to understand consumers’ decision making process, they used a simple questionnaire or a form. Respondents would generally answer what was on the top of their minds or what they assumed the researcher wanted to hear. However, this did not always correspond to their actual purchase decisions. For example,…
Case Study
Individual cases are taken and a detailed study of each case is done. Advantages of Case Study Accurate data is provided There is detailed analysis Disadvantages of Case Study It is difficult to generalize. It consumes lot of time. Confidential and sensitive information may not be given. Interviewer bias is there.
Brand Health Survey
A brand is a perception in its consumers’ minds. A strong brand can command a premium price. This power of a brand is measured using a technique of marketing research – Brand Health Survey. Figure: Current health status of some popular brands While checking a brand’s health certain vital aspects are captured such as how…
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.
Article Written by
Himanshu Juneja, the founder of Management Study Guide (MSG), is a commerce graduate from Delhi University and an MBA holder from the esteemed Institute of Management Technology (IMT). He has always been someone deeply rooted in academic excellence and driven by a relentless desire to create value. Recently, he was honored with the “Most Aspiring Entrepreneur and Management Coach of 2025 (Blindwink Awards 2025)” award, a testament to his hard work, vision, and the value MSG continues to deliver to the global community.
Article Written by
Himanshu Juneja, the founder of Management Study Guide (MSG), is a commerce graduate from Delhi University and an MBA holder from the esteemed Institute of Management Technology (IMT). He has always been someone deeply rooted in academic excellence and driven by a relentless desire to create value. Recently, he was honored with the “Most Aspiring Entrepreneur and Management Coach of 2025 (Blindwink Awards 2025)” award, a testament to his hard work, vision, and the value MSG continues to deliver to the global community.
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