Concept Testing

Chapter 08
 A seven-step method:
1. Define the purpose of the concept
test.
2. Choose a survey population.
3. Choose a survey format.
4. Communicate the concept.
5. Measure customer response.
6. Interpret the results.
7. Reflect on the results and the
process.
 Step 1: Define the purpose
of the concept test
The team explicitly articulate in
writing the questions that the team
wishes to answer with the test.
It is an experimental activity and as
with any experiment, knowing the
purpose of the experiment is
essential to designing an effective
experimental method.
 Step 1: 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?
 Step 2: Choose a survey
population
The team should choose a survey population
that mirrors the target market in as many
ways as possible.
In the actual survey, the first few questions
are called the screener questions and
generally are used to verify that the
respondent fits the definition of the target
market for the product.
Often a product addresses multiple market
segments. In such cases, an accurate concept
test requires that potential customers from
each target segment be surveyed.
 Step 3: Choose a survey
format
The following formats are commonly
used in concept testing:

Face-to-face interaction
Telephone
Postal mail
E-mail
Internet
 Step 4: Communicate the
concept
Concepts can be communicated in any of the
following ways, listed in order of increasing
richness of the description:
Verbal description
Sketch (Fig 8-4)
Photos and renderings (Fig 8-5)
Storyboard (Fig 8-6)
Video
Simulation
Interactive multimedia
Physical appearance models (Fig 8-7)
Working prototypes (Fig 8-8)
 Step 5: Measure customer
response
Customer response is usually measured by
asking the respondent to choose from two
or more alternatives concepts.
Concept tests also generally attempt to
measure purchase intent.
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
 Step 6: Interpret the
results
The team may decide to choose a concept based
on cost or other considerations.
We may estimate Q, the quantity of the product
expected to be sold during a time period, as
Q=NXAXP
where, N is the number of potential customers
expected to make purchases during the time
period.
A is the fraction of these potential customers or
purchases for which the product is available and
the customer is aware of the product.
and P is the probability that the product is
purchased if available and if the customer is
aware of it.
Step 7: Reflect on the results
and the process
The primary benefit of the concept
test is in getting feedback from real
potential customers.
In reflecting on the results of the
concept test, the team should ask
two key diagnostic questions.
Was the concept communicated in a way
that is likely to elicit customer response
that reflects true intent?
Is the resulting forecast consistent with
observed sales rates of similar products?
Thanks to all