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
