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ONCEPT TESTINGnew product DEVELOPMENT
Shruthi S Waghmare
Manipal
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What is new productconcept?
Websters says a concept is an idea or an abstract notion. Businesspeople use the term concept for the product
promise,the customer proposition and the real reason why
people should buy.
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New Products Process
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Segway Inc.
US-based company
Founded in 1999 by Dean Kamen
Vision: to develop highly-efficient, zero-emissiontransportation solutions using dynamicstabilization technology
Segway on sale on Amazon.com in 2002
As of 2007, present in 60 countries
Main consumers: security, police, mass retailers,
university, theme parks
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Eg: Seg-way
The concept was a two-wheeler electric powered scooter that could be easily foldedand carried. Segway.inc wished to access the customer response to this concept in orderto decide to proceed with its development and to support the companys financingefforts
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Opportunity identificationand selection
Dean Kamen sawopportunity tosolve urban
problems Create vehicles of
minimal space,able to maneuverand use onpavements
Inspiration fromIBOT wheelchair, a6-wheel balancingmachine for the
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CONCEPT TESTING
Concept testing presents the consumer with a proposedproduct and measures attitudes and intensions at this earlystage of development
Concept testing is based on data gathered directly frompotential customers and relies to a lesser degree onjudgments made by the development team
It is also closely related to concept selection and prototypingwere, it involves some kind of representation of the product
concept.
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Seven step method-concept testing
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STEP1
Define the purpose of the concept test
Concept testing is an experimental activity, and so itsvery essential to know the purpose of theexperiment to design an effective experimentalmethod.
Primary questions addressed are:--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?
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STEP2Choose a survey population
The population of potential customers surveyed reflects
that of the target market for the product. The survey population to be chosen in such a way that it
mirrors the target market in as many ways as possible. Surveying every possible segment may be very expensive in
cost or time, in such cases the team may choose to surveypotential customers from only the largest segment .
For the scooter, there are two primary consumer segments:
college students and urban commuters. The team decided to form a survey population from both
segments.
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Sample sizes for concept testing are sometimes as smallas 10(qualitative data) or as large as 1000(quantitativedata)
Depending on the desired data to be collected from the
concept-testing process, multiple surveys withdifferent objectives may be structured.
Each of these surveys may involve a different samplepopulation and a different sample size.
Eg: Sigway.Inc did two concept testing- -the team sampled only a handful of potential customers
to obtain feed back on the attractiveness of the concept
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-a purchase intent survey of 1000 customers-for demand forecaston which financing decisions were based.
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STEP 3Choose a survey format
Face to face interaction-interviewer interactsdirectly with the
respondents like stoppingpeople at mall or on streets
, .etcTelephone-prearranged and
targeted at very specificindividuals like pediatric
dentists
Postal mail-poor responserates Electronic mail-to be used
only when the respondentsare likely to receive a
.benefit out of it
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STEP 4Communicate the Concept
Verbal Description-a short paraor acollection of bullet points summarizing theproduct concept. It may be read by therespondent or may be the person
administering the survey Eg-Scooter,itsbuild ,features, its weight,etc
Sketch-usually line drawings showing theproduct in perspective, perhaps withannotations of key features
Photos and renderings-when theappearance models exist for the productconcept. Renderings are nearly photo-realistic , created by pens and markers or
using CAD tools. Stor board-its a series of ima es that
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Video- it allows even more dynamism thanthe storyboard, the concept can be clearlycommunicated.
Simulation-it is implemented as software
that mimics the function or features of theproduct.
E.g.in testing controls for electronic deviceswere the user can control the simulateddevice via a touch screen or mouse clicks and
can observe its simulated displays andsounds.
Interactive multimedia-it displays bothvideos and still images of the product
Physical appearance models-look alikemodels
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STEP 5Measure Customer response
When a concept test is performed early inthe concept development phase, customerresponse is usually measured by asking therespondent to choose from two or more
alternative concepts Additional questions focus on whyrespondents react the way they do and onhow the product concepts could beimproved.
Also measures purchase intents like-definitely would buy,probably would buy,might or might not buy,
probably would not buy,definitely would not buy
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STEP 6Interpret the results
Interpretation of the result is straight forwardif the team is simply interested incomparing two or more concepts.
If one concepts dominates the other-choosethe preferred concept .
If the results are not conclusive choose aconcept based on cost or otherconsiderations.
The results of forecast based on concepttesting should be interpreted with caution,as it is difficult to reach the accuracy inforecasting.
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Some factors that can cause actualpurchase pattern to differ from thepurchase intensions expressed in survey
are:-importance of word of mouth-not capturedin concept testing
-fidelity of the concept description-actual
products differ from description of theproduct
-pricing-variation in it-level of promotion-may increase or
decrease the sales
STEP 7
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STEP 7Reflect on the results and the
process Primary benefit of concept testing-to get
feedback from real potential customers.The three variables from this testing can be
given more importance during forecasting-
verallize ofhe marketAvailabilitand warenessf theproduct
raction ofustomers whore likely topurchase
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hankhankYouou
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