Chapter 9 - Concept Testing

Question 1

Many Ideas Are Eliminated Before Concept Testing

• PIC eliminates most new product ideas even before they are developed into concepts.
• Ideas of the following types are excluded:
  a. Ideas requiring technologies the firm does not have.
  b. Ideas to be sold to customers about whom the firm has no close knowledge.
  c. Ideas that offer too much (or too little) innovativeness.
  d. Ideas wrong on other dimensions: not low cost, too close to certain competitors, etc.

Answer 1

No Answer

Question 2

Market Analysis and Initial Reaction

• Market analysis: in-depth study of market area that the PIC has selected for focus.
  a. When is the market analysis conducted?
• Initial reaction: preliminary, inexpensive assessment of concepts, which may be flowing very quickly at this point
  a. Avoid “bazooka effect” quickly blasting out concepts without forethought
  b. Do not include idea source in initial reaction.
  c. Respect the “fragility of ideas” – have more than a single person involved.
  d. Use more than pure intuition – keep records and stay objective.

Answer 2

The market analysis is conducted immediately after PIC approval.

Question 3

Suggested Questions for the Initial Reaction

• Market Worth: What is the attractiveness of the new market to the targeted customer?
• Firm Worth: Is the new product project viewed positively by management? Does this new product project enhance the firm’s competencies?
• Competitive Insulation: Can the product’s advantage be maintained against competitive retailiation?

Answer 3

No Answer

Question 4

Concept Testing Cautions and Concerns

• If the prime benefit is a personal sense (aroma, taste).
• If the concept involves new art and entertainment.
• If the concept embodies a new technology that users cannot visualize.
• If concept testing is mishandled by management, then blamed for product failure.
• If customers simply do not know what problems they have.

Answer 4

No Answer

Question 5

What is a Product Concept Statement?

• A statement about anticipated product features (form or technology) that will yield selected benefits relative to other products or problem solutions already available.
• Recall the importance of getting responses to product concepts and not simply ideas (Chapter 4).

Answer 5

No Answer

Question 6

Purposes of Concept Testing

• To identify very poor concepts so that they can be eliminated.
• To estimate (at least crudely) the sales or trial rate the product would enjoy (buying intentions, early projection of market share).
• To help develop the idea (e.g., make tradeoffs among attributes).

Answer 6

No Answer

Question 7

Some Key Issues in Concept Testing

• Concept statement: narrative, drawing, model?
• Respondent group: Lead users? Large users?
• Response situation: Where? How?
• Interviewing sequence: Believable? Important? - Interesting? Would it work? What problems do they see? Would they buy?
• Test procedure, change and implement, study findings.

Answer 7

No Answer