Concept testing

CHAPTER 9

Group Members
Name

Roll No

Aqib Sharif

2901

Malik Muhammad Ahmad

2918

Concept Testing

Is the process of using qualitative and quantitative methods to

evaluate consumer response to a product idea before the
introduction of product to the market.

Rational Benefits

A detergent removes stains and is gentle on fabric

Non Rational Benefits

A shampoo lets to be yourself.

How to do concept testing?

Field survey

Personal Interview

Focus Group

Combination of various methods for quantitative data

Importance of Up Front Evaluation

For confirmation that:

There will be a quality product

We save time by gathering information.

Time spent here saves overall time.

We can save cost:

Cost of change here is lower than change after product

introduced.

Through information gathered here we can forecast the cost.

The Product Innovation Charter

A set of policies, goals, objectives and restrictions of

organizations is called PIC. PIC is a written document to chart the
companys new product strategy and to guideline the new
product team.

PIC will remove many ideas those are not according to the PIC
guidelines.

Market Analysis

Depth Study of market area that PIC has selected for focus.

Depth of study depends on how well firm already knows the

market.

Initial Reaction

Concepts begin flowing in very fast. There is a special technique to

handle these concepts called Initial Reaction.

Example
At Oster ideas coming from marketing and admin goes to sales vice
president and ideas coming from technical/operation department goes
to Engineering vice president.
If one of these approves the idea it is sent to other and if both
approves the idea is sent to committee.
By so system becomes more formal. This is Initial Reaction.

Bazooka Effect

Where suggestions are quickly blasted out. Initial reaction removes the
Bazooka Effect

Initial Reaction

Idea source does not usually participate in the initial reaction

Two or more persons are involved in idea rejection, which

removes biases of single person.

The initial reaction is based on more than a pure intuitive sense.

Evaluators are trained and experienced; objectives are sought.

Initial Reaction
Early evaluation is based on:

Market Worth

Firm Worth

Competitive Insulation

Concept Testing and Development

There are times when concept testing doesnt help. When prime
benefit is personal sense e.g. perfume, food.

Art and entertainment are tough to test. e.g. painting and

movies.

When the concept has new technology that users can not
visualize.

What is new product concept?

The product concept is the proposed satisfaction. This is promise,

customer proposition and real reason why customer should buy.

1.

Producers perception of features of new product.

2.

Consumer's perception of features of new product.

3.

Producers estimate of the benefits delivered by that features.

4.

Consumers estimate of the benefits delivered by that features.

The purpose of concept testing?

Identify the very poor concept so it can be eliminated.

Estimate the sales, market share and revenue.

How likely would you buy a product like this, if made?

Definitely would buy

Probably would buy

Might or might not would buy

probably would not buy

Definitely would not buy

Top-Two-Boxes
Number of people who definitely would buy or probably would buy
are combined.

The purpose of concept testing?

Concept testing helps developing the idea. Only stated concept

would not help R&D they need to know what attributes would
permit the new product to fulfill concept statement.

Prepare the concept statement

A concept statement states the difference and how difference

benefits the customers.

This is a refrigerator that is CFC free and if it is CFC free it will not
destroy ozone layer.

Format

A very brief presentation.

Drawing, Diagrams and Sketches

Prototypes and models

Virtual Reality

Define The Respondent Group

Interview people who are directly or indirectly related to concept

Select response situation

1.

The mode for reaching the respondent e.g personal (most used),
survey sample, mail, telephone.

2.

Whether to approach respondent individually or in a group.

Real time response survey

Example:
100 participants gives their intentions to price by using 11 points
scale.

Prepare Interviewing Sequence

Believes

Concerns

Their problems and what kind of solutions they are looking for.

Willingness

Benefits they seek