CONCEPT TESTING

This type of testing may be used to select which of two or more concepts should be pursued, to gather information from potential customers on how to improve a concept, and to estimate the sales potential of the product. Concept testing is closely related to prototyping because concept testing invariably involves some kind of representation of product concept. One of the end results of a concept test may be an estimate of units of product the company is likely to sell.

Identify customer needs

Establish target specifications

Generate product concept

Select product concept(s)

Test Product concept(s)

Set Final Specifications

Plan Downstream Development

Perform Economic Analysis Benchmark Competitive Products Build and test models and prototypes
Fig.1 Concept testing in relation to other concept development activities.

Seven step method for testing product concepts:

1. 2. 3. 4. 5. 6. 7. Define the purpose of the concept test. Choose a survey population. Choose a survey format. Communicate the concept. Measure customer response. Interpret the result. Reflect on the results and the process.

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STEP1: DEFINE THE PURPOSE OF THE CONCEPT TEST The primary questions addressed in concept testing are typically: Which of several alternative concepts should be pursued? How can the concept be improved to better meet customer needs? Approximately how many units are likely to be sold? Should development be continued?

STEP2: CHOOSE A SURVEY POPULATION The team should choose a survey population that mirrors the target market in as many ways as possible. The sample size of the survey should be large enough that the team`s confidence in the results is high enough to guide decision making. STEP3: CHOOSE A SURVEY FORMAT The following formats are commonly used in concept testing: Face to-face interaction Telephone Postal Mail Electronic Mail Internet

STEP4: COMMUNICATE THE CONCEPT Concepts can be communicated in any of the following ways, listed in order of increasing richness of description. Verbal description Sketch Photos and renderings Storyboard Video Simulation Interactive multimedia Physical appearance models Working prototype

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STEP5: MEASURE CUSTOMER RESPONSE The most commonly used purchase-intent scale has five response categories: Definitely would buy. Probably would buy. Might or might not buy. Probably would not buy. Definitely would not buy.

STEP6: INTERPRET THE RESULT If the team is simply interested in comparing two or more concepts, interpretation of the result is straight-forward. If one concept dominates the others and the team is confident that the respondents understood the key differences among concepts, then the team can choose the preferred concept. If the results are not conclusive, the team may decide to choose a concept based on cost considerations. Some of the factors that can cause actual purchase patterns to differ from the purchase intentions expressed in surveys include: a. Importance of word-of-mouth b. Pricing c. Level of promotion

STEP7: REFLECT ON THE RESULTS AND THE PROCESS The Team benefits from thinking about the impact of the three key variables in the forecasting model: The overall size of the market. The availability and awareness of the product. The fraction of the customers who are likely to purchase.

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