JOURNAL
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352DP-Ch-9.pptChapter 9
Concept Testing
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Most Ideas Are Eliminated Before Concept Testing
- PIC eliminates new product ideas before concept development.
- Ideas excluded:
- Ideas requiring technologies the firm does not have.
- Ideas for customers whom the firm has little knowledge.
- Ideas that offer too much (or too little) innovativeness.
- Ideas missing dimensions: not low cost, too close to certain competitors, etc.
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Ron’s Rule for New Consumer Products
Benefit must be obvious.
Little or no education to use.
Good price/value.
Market Analysis and Initial Reaction
- Market analysis: in-depth study of the market for PIC focus.
- Initial reaction: preliminary, inexpensive concept assessment:
- Avoid “bazooka effect” - quickly blasting out concepts without forethought or aligned with PIC.
- Respect “fragility of ideas” — have more than a single person involved.
- Use more than pure intuition — keep records and stay objective.
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Questions for the Initial Internal Screening
- Market Worth: what is the attractiveness of the new product to the target customer?
- Definitely/Probably would buy?
- Firm Worth: Does the new product enhance the firm’s competencies?
- Fit, core competencies, asset utilization?
- Competitive Insulation: Can the product advantage be maintained vs. competition?
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Concept Testing Cautions and Concerns
- If the prime benefit is one of 5 senses (smell, taste, touch, sight, auditory).
- If the concept involves new art and entertainment.
- If the concept embodies new technology that users cannot visualize using.
- If concept testing is mishandled by management, then blamed for product failure.
- If customers simply do not know what problems they have.
- Consider: FedEx, the Ferris wheel, the microwave, diet fast food burgers
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Procedure for a Concept Test
- Prepare concept statement
- Clarify specific purposes
- Decide format(s)
- Select commercialization
- Determine price(s)
- Select respondent type(s)
- Select response situation
- Define the interview
- Conduct trial interviews
- Interview, tabulate, analyze
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Some Key Issues in Concept Testing
- Concept statement: narrative, drawing, model?
- Respondent group: Lead users? Large users?
- Response situation: Where? How?
- Interviewing sequence: Is the concept understandable? Believable? Important? Interesting? Realistic? Would it work? What problems do they see? Would they buy?
- Test procedure, change and implement, study findings.
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Mail Concept Test — Verbal Description
Here is a tasty, sparkling beverage that quenches thirst, refreshes, and makes the mouth tingle with a delightful flavor blend of orange, mint, and lime.
It helps adults (and kids too) control weight by reducing the craving for sweets and between-meal snacks. And, best of all, it contains absolutely no calories.
Comes in 12-ounce cans or bottles and costs 60 cents each.
1. How different, if at all, do you think this diet soft drink would be from other available products now on the market that might be compared with it?
1 2 3 4 5
Not Very different ( ) ( ) ( ) ( ) ( ) Very Different
2. Assuming you tried the product described above and liked it, about how often do you think you would buy it?
1 2 3 4 5
Would never buy it ( ) ( ) ( ) ( ) ( ) More than once a week
Figure 9.1
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Mail Concept Test — Sketch
Figure 9.2
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Benefit Segmentation in Swimsuit Market
Figure 9.3
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Aqualine
Islands
Splash
Molokai
Sunflare
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3
1
Fashion
Comfort
Joint Space Map Showing Ideal Points
Figure 9.4
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Chart1
| 4.36 | 2.48 | 2.48 |
| 3.65 | 2.74 | 2.74 |
| 2.53 | 4.37 | 4.37 |
| 3.48 | 3.45 | 3.45 |
| 2.63 | 2.69 | 2.69 |
Sheet1
| 2.48 | 2.74 | 4.37 | 3.45 | 2.69 | |
| 4.36 | 3.65 | 2.53 | 3.48 | 2.63 |
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Conjoint Analysis in Concept Testing: EZPass
- Key attributes: number of accounts to open, how to apply and pay for an account, number of EZPass lanes at each toll plaza, etc.
- 11-minute video of product in action and its effectiveness in reducing congestion.
- Respondents all received the video, a questionnaire, and scenario cards showing combinations of attributes.
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Market Research to Support Concept Testing: BASES
- 300 adult female respondents surveyed.
- Nestle Refrigerated Foods example (Contadina Pasta)
- 75% top-two-boxes score (24% definitely + 51% probably would buy).
- Median top-two-boxes score for this category: 61%.
- Split respondents into favorable (the 75% in the top two boxes) and unfavorable.
- Both groups liked the same things: product is natural, offers variety, is fresh, saves time, is easy to prepare.
- Most common negative: price.
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BASES (continued)
- BASES tried three positioning statements: Homemade, Pasta Dinner, and Superior; Superior was found to have more likes and fewer dislikes and was selected.
- Obtain adjusted trial through rough rule of thumb: 80% of the “definitely” + 30% of the “probably” will actually buy, or:
(0.8 x 24%) + (0.3 x 51%) = 34.5%
- Assuming 48% awareness and 70% availability, we get :
AW x T x AV = 0.48 x 34.5% x 0.70 = 11.6%
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BASES (continued)
- Total number of trial households:
target households x trial rate =
77.4 million x 11.6% = 9 million.
- To get an estimate of Repeat, use:
Repeat for similar products = 39%
Average customer repeat = 2.5 times
No. of units bought per purchase occasion = 1.4
Repeat estimate = 39% x 2.5 x 1.4 = 136.5%
(Note: this repeat calculation is slightly different than in the text, but is used at BASES.)
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BASES (continued)
- Therefore the final prediction of sales based on A-T-A-R is:
9 million x 136.5% = 12.3 million.
- According to Nestle, the greatest uncertainty was in the Repeat estimate of 39%, so a worst case scenario was tried.
Even at a worst-case 27% repeat rate, sales forecast was still 8.5 million which still surpassed Nestle objectives.
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Dell AR Perceptual Map
New Segment Potential
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30%
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