Introduction to Concept Testing
Before a new drug is launched, a new variety of cereal is manufactured and stocked on grocery shelves, or a new television sitcom is produced, each of these new market entries ideally goes through multiple phases of concept or product testing with the target market(s). Just as some approaches to Awareness, Trial, and Usage (ATU) research or Pricing Sensitivity research are more effective than others, there are also ways to conduct concept or product testing that yield richer, more reliable findings.
Iterative Approach to Concept Testing
“If we build it, will they buy it?”
Concept testing should be done iteratively and conducted in several phases. The results of earlier phases should inform the questionnaire for each phase—its specific focus, question content, and response options. At its core, concept testing aims to determine the extent to which the product or service would prompt a desired behavior under consideration within its target market. For instance:
- Cereal: The desired behavior is purchasing the product.
- Prescription Drug: The desired behavior is physician prescribing.
- Television Sitcom: The desired behavior is viewing the program.
Evaluating and Selecting Concepts
Which concepts are worthy of further exploration?
Often, even the client company isn’t entirely sure what the end product will “look like.” For example, a cereal manufacturer may want to introduce a new line of cornflakes but may not know how it will differentiate from existing products. They might be considering chocolate-flavored cornflakes or peanut butter-flavored cornflakes but only want to launch one new flavor. In this case, the first phase of concept or product testing should focus on determining which product would be most enthusiastically welcomed by the target market.
Designing Effective Questionnaires
When designing your questionnaire, remember that the more detailed the data it yields, the better. Rather than a simple yes/no question (“Would you be likely to purchase a peanut butter-flavored cornflake cereal?”), ask respondents to rate their likelihood of purchasing on a seven- or ten-point scale. If multiple product versions are being considered, ask respondents to rank their preferences to see how closely average ratings and rankings correlate. The more discriminating your data, the more confidence you can have in identifying concepts that will receive a positive reception in the marketplace.
Focusing on the Big Picture
At this initial stage of concept testing, focus on the “big picture” concept, such as, “How likely would you be to purchase a peanut butter-flavored cornflake cereal?” You might explore a few specifics that help define the product’s parameters—like its nutritional value or whether it’s gluten-free—but the primary objective should be to gauge overall interest in the basic product among the target audience.
Ensuring Reliable Data Collection
Respondents may not prefer one option over another in early testing phases. Your questionnaire should account for these scenarios:
- All proposed products receive similar enthusiasm.
- None of the products generate enthusiasm.
- Respondents prefer an entirely different type of product that your client has not yet considered.
For example, respondents might express interest in strawberry- or bacon-flavored cornflakes instead of the original options. To ensure accurate results, prescreen respondents to confirm they belong to the target market. For instance, avoid including people who don’t eat cereal or are allergic to peanuts.
Shifting Focus to Product Attributes
From the Big Picture to the Smaller Details
After testing overall concepts, focus on the specific attributes that shape the product or service. These attributes are the characteristics that make your client’s product unique. The specific attributes you’ll focus on depend on the product category. For example:
- Prescription Drug: Efficacy, side effects, formulation, etc.
- Television Show: Program length, genre, actors, etc.
- Cereal: Taste, texture, nutritional value, calories, all-natural ingredients, availability, price, etc.
When evaluating these attributes, avoid yes/no questions. Instead, respondents were asked to rate the importance of each attribute and then rank them in order of importance to their purchase decision. This method helps prevent respondent fatigue and order bias, especially in online or CATI (computer-assisted telephone interview) surveys. Randomly rotating the order of each attribute list for different respondents is a useful technique here.
Advanced Techniques for Data Analysis
In addition to rating and ranking, you can use multivariate techniques like Max-Diff to handle many attributes. Max-Diff provides a different approach to ranking, which can maintain respondents’ attention longer. In cases where combinations of attributes need to be evaluated, such as in pharmaceutical research, you might use a Discrete Choice exercise. This method is more complex and costly, but it can provide insights that are otherwise hard to obtain.
Preparing for Subsequent Phases
Planning with Your Programming Team
As mentioned earlier, planning and upfront communication with your programming team are essential. Ensure that proper resources are available within the project’s timeframe and that the client’s budget can accommodate additional multivariate techniques if needed.
Is There “Life” After Concept Testing?
If the client revises the product attribute list significantly after reviewing the findings, you may need to repeat the study with the updated list. Once the attribute list is final and the client understands the pros and cons of the selected attribute profile, you can move on to the next phases of pre-launch research. This might include:
- Message Testing: To identify the most compelling promotional messages.
- Package Testing: To evaluate packaging types, labeling, colors, and logos.
- Pricing Sensitivity Research: To fine-tune the product’s pricing strategy.
But those are topics for another time!
Ready to take your product ideas to the next level? Contact us today to schedule a call and discover how Proteus helps validate your concepts and drives successful market launches. Let’s turn your ideas into customer favorites!
