1. Product and Innovation Management Topic 7
Concept testing
Product and Innovation Management
Topic 7

2. What is a new product concept statement?
‘A new electric razor whose screen is so thin it can cut closer than any other electric razor on the market’
‘A copier that has twice the speed of current models’
‘This new refrigerator is built with modular parts; consequently, the consumer can arrange the parts to best fit a given kitchen location, and then, rearrange them to fit another kitchen’
Positioning

3. Considerations in concept testing
Decide on target market segment – Targeting and Segmentation
Decide on the format
Decide on whether to ‘commercialise’ the new product concept statement
Decide on whether to provide information of competitive products
Decide on whether to tell the price
Decide on the respondent group
Decide on the response situation
Decide on the information required

4. Types of format 1. Narrative 2. Picture 3. Prototype
4. Virtual reality

5. Narrative format New diet soft drink
A major soft drink manufacturer would like to get your reaction to an idea for a new diet soft drink. Please read the description to the right.
Then ask questions …
New diet soft drink
Here is a tasty, sparkling beverage that quenches the thirst, refreshes, and makes the mouth tingle with a delightful flavour blend of orange, mint, and lime.
It helps adults and kids control weight by reducing the craving for sweets and between-meal snacks. And, best of all, it contains absolutely no calories.
Come in 330 ml cans and price 80 pence each.

6. Picture format Aerosol hand cleanser
A large-size can of hand cleanser concentrate that completely eliminates those lingering unpleasant odors that come from handling fish, onions, garlic, furniture polish, etc. Just press the button and spray directly on the hands, rub for a few seconds, and rinse off under the faucet, 500 ml aerosol can will last for months. Price £3.50 each.
Then ask questions …

7. Prototype format Useful in special situations
-> Simple-to-prepare food products
-> Very complex concepts

8. Virtual reality format
Do we need to provide lots of detail for respondents to concept testing?
Capture the advantages of the prototype format without most of its disadvantages

9. Should the new product concept statement be in a commercialised tone?
Compare these two statements:
‘Light Peanut Butter, a low-calorie version of natural peanut butter that can provide a tasty addition to most diets’
‘A marvellous new way to chase the blahs from your diet has been discovered by General Mills scientists – a low-calorie version of ever-popular peanut butter. As tasty as ever and produced by a natural process, our new Light Peanut Butter will fit most weight-control diets in use today’
Reason why choose second one: More detail/reality/
First one is clear to find key benefit
Solution: cannot commercialise too much

10. What is the typical information required in concept testing?
Explore respondents’ current practice in the product area concerned
Then explore their understanding and comment about the new product concept
-> Understanding of the concept
-> Uniqueness of the concept
-> Believability of the concept
-> Importance of the concept
-> Interest in the concept
-> Usefulness of the concept
-> Possible changes made in the concept
-> Applications of the concept
-> Product/process replacement arising from the concept
-> Users of the concept
-> Adoption of the concept – buying intention question

11. Typical buying intention question
How likely would you be to buy a product like this, if we made it?
□ Definitely would buy
□ Probably would buy
□ Might or might not buy
□ Probably would not buy
□ Definitely would not buy
Two issues:
(1) Use ‘try’ instead of ‘buy’?
(2) How to interpret the result?

12. Purposes of concept testing
1. Be assured of the quality of the product
2. Save time
3. Reduce cost
4. Identify the very poor concept so it can be eliminated
5. Estimate sales or trial rate that the product would enjoy, through asking a buying intention question
6. Fine tune the concept
7. Breed ‘basic’ marketing strategy

13. Advantages of concept testing
Quick and easy
Sort out less valuable concepts
Learn a lot about buyer thinking of the concept
Develop positioning, targeting, and segmentation

14. Disadvantages of concept testing
Respondents need a learning period
Stimulus of a concept statement is very brief
Situational variables may change between concept testing and launch
Some attributes cannot be measured through concept testing

15. When concept testing doesn’t help …
1. When the prime benefit is a personal sense …
2. When the concept embodies new art and entertainment …
3. When the concept embodies some new technology that users cannot visualize …
4. When users don’t know what problems they have …
5. When it is mismanaged …

16. Identify benefit segment
Why?
How?

17. Perceptual map Cola flavour 0.8 0.4 Dietness 0.0 -0.4 -0.8 -1.5 0.0
Dr Pepper
Tango
0.4
Coke
Pepsi
7-Up
Dietness
0.0
Diet Tango
Diet Pepsi
-0.4
Diet 7-Up
Diet Coke
-0.8
-1.5
0.0
1.5

18. Importance map Cola flavour 0.8 0.4 Dietness 0.0 -0.4 -0.8 -1.5 0.0

19. Joint space map Overlay the benefit segments onto the perceptual map
What if there are more than two attributes that are important to customers in choosing products

20. Full screen
1. Score each hypothetically important factor of technical and commercial accomplishment of each new product concept
2. Weigh each of these factors
3. Calculate weighted score for each factor
4. Calculate grand total of weighted scores of all the factors being considered

21. An example of full screen scoring form
Category
Factor
5-point Likert scale
Score
Weight
Weighted score
Technical accomplishment
Technical task difficulty
From ‘Very difficult’ to ‘easy’ 4 16
Research skills required
From ‘Have none required’ to ‘Perfect fit’ 5 3 15
Development skills required 2 10 .
Commercial accomplishment
Market volatility
From ‘High/erratic’ to ‘Very stable’ 6
Probable market share
From ‘Fifth at best’ to ‘Number one’ 25
Probable product life
From ‘Less than a year’ to ‘Over 10 years’ 9
Grand total
450

22. Why full screen?
1. To decide whether and how much technical resource should be devoted to the concept
Whether we can do it and whether we want to do it
2. To help manage the new product management process
(1) Cycling unacceptable but potentially worthwhile concepts back into concept development
(2) Rank ordering acceptable concepts
(3) Recording appraisals on rejected concepts
3. Encouraging cross-functional communication