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Chapter 08-Concept Testing

The document outlines a seven step method for concept testing including defining the purpose, choosing a survey population and format, communicating the concept, measuring customer response, interpreting results, and reflecting on the process and results. Key aspects are choosing a representative target customer group, determining sample size, testing multiple concepts, and measuring purchase intent and forecasts.

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19 views

Chapter 08-Concept Testing

The document outlines a seven step method for concept testing including defining the purpose, choosing a survey population and format, communicating the concept, measuring customer response, interpreting results, and reflecting on the process and results. Key aspects are choosing a representative target customer group, determining sample size, testing multiple concepts, and measuring purchase intent and forecasts.

Uploaded by

emonhssn22
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Md.

Shohel Parvez
Assistant Professor
Dept. of IEM, KUET.

PRODUCT DESIGN AND


DEVELOPMENT
Chapter 8 : Concept Testing
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 2: CHOOSE A SURVEY POPULATION
 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.
 Sample sizes for concept testing are sometimes as
small as 10 or as large as 1000.
 There are no simple formulas for determining sample
size, but some factors affect the sample size.
FACTORS FAVORING A SMALLER SAMPLE
SIZE

 Test occurs early in concept development


process.
 Test is primarily intended to gather
qualitative data.
 Surveying potential customers is
relatively costly in time or money.
 Required investment to develop and
launch the product is relatively small.
 A relatively large fraction of the target
market is expected to value the product.
FACTORS FAVORING A LARGER SAMPLE SIZE
 Test occurs later in concept development
process.
 Test is primarily intended to assess
demand quantitatively.
 Surveying customers is relatively fast and
inexpensive.
 Required investment to develop and
launch the product is relatively high.
 A relatively small fraction of the target
market is expected to value the product.
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
 Photos and renderings
 Storyboard
 Video
 Simulation
 Interactive multimedia
 Physical appearance models
 Working prototypes
Appropriateness of different survey formats for
different ways of communicating the product concept
STEP 5: MEASURE CUSTOMER
RESPONSE
 Customer response is usually measured by asking the
respondent to choose from two or more alternative
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.

P = Cdefinitely  Fdefinitely + C probably  Fprobably


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

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