1 / 22

MSE-415: Product Design Lecture #5

MSE-415: Product Design Lecture #5. Chapter 8 Concept Testing. Lecture Objectives:. Discuss structured methods for evaluating concept designs. Homework #5 Due. Concept Selection. Concept testing is part of the overall concept development phase. Mission Statement. Development Plan.

brygid
Download Presentation

MSE-415: Product Design Lecture #5

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MSE-415: Product DesignLecture #5 Chapter 8 Concept Testing

  2. Lecture Objectives: • Discuss structured methods for evaluating concept designs. • Homework #5 Due.

  3. Concept Selection • Concept testing is part of the overall concept development phase. Mission Statement Development Plan Identify Customer Needs Establish Target Specifications Generate Product Concepts Select Product Concept(s) Test Product Concept(s) Set Final Specifications Plan Downstream Development Perform Economic Analysis Benchmark Competitive Products Build and Test Models and Prototypes

  4. Concept testing • Concept testing is the attempt to predict the success of a new product idea before it is marketed. It usually involves getting people’s reactions to a statement describing the basic idea of the product.

  5. Concept Testing is Used for Several Purposes • Go/no-go decisions • What market to be in? • Selecting among alternative concepts • Confirming concept selection decision • Benchmarking • Soliciting improvement ideas • Forecasting demand • Ready to launch?

  6. Concept Testing Process • Define the purpose of the test • Choose a survey population • Choose a survey format • Communicate the concept • Measure customer response • Interpret the results • Reflect on the results and the process

  7. Concept Testing Process • Define the purpose of the test • Explicitly articulate in writing the questions that the team • wishes to answer with the test. • Primary Questions: • Which of several alternative concepts should be pursued? • How can the concept be improved to better meet customerneeds? • Approximately how many units are likely to be sold? • Should development be continued?

  8. Concept Testing Process 2. Choose a survey population Choose a survey population which mirrors the target market in asmany ways as possible. But how big the population?

  9. Survey Population 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 intime and/or money. • Required investment to develop and launch the productis relatively small. • A relatively large fraction of the target market is expectedto value the product.

  10. Survey Population Size Factors favoring a larger sample size: • Test occurs later in concept development process. • Test is primarily intended to gather quantitative data. • Surveying potential customers is relatively fast and inexpensive. • Required investment to develop and launch the productis relatively high. • A relatively small fraction of the target market is expectedto value the product.

  11. Survey Population Size How Big? iPhone Chewing Gum Aircraft Carrier Car

  12. Concept Testing Process 3. Choose a survey format Typical Survey Formats • Face-to-face interaction • Telephone • Postal Mail • Electronic Mail • Internet Avoid inherent bias. An internet survey would be a bad choicewhen surveying a product geared for non-technical customers.

  13. Concept Testing Process 4. Communicate the concept • Verbal Description • Sketch • Photos/Rendering • Storyboard • Video • Simulation • Interactive multimedia • Physical appearance models • Working prototypes Make sure you communicate the concept in a way that is appropriatefor the survey. Example: You can’t show a video via a telephone survey!

  14. Concept Testing Process 4. Communicate the concept - Issues • Description of concept should the information the userwill most likely consider when making a purchase. • Do not include price unless very high or very low. • WHY? • Present several concepts if possible.

  15. Mail Concept test - sketch

  16. Mail Concept Test -- Verbal Description • Here is a tasty, sparkling beverage that quenches thirst, refreshes, and makes the mouth tingle with a delightful flavor blend of orange, mint, and lime. It helps adults (and kids too) control weight by reducing the craving for sweets and between-meal snacks. And, best of all, it contains absolutely no calories. Comes in 12-ounce cans or bottles and costs 60 cents each. • 1. How different, if at all, do you think this diet soft drink would be from other available products now on the market that might be compared with it? • Very different ( ) ( ) ( ) ( ) ( ) ( ) Not at all different • 2. Assuming you tried the product described above and liked it, about how often do you think you would buy it? • More than 1X a week ( ) ( ) ( ) ( ) ( ) ( ) Would never buy

  17. Concept Testing Process 5. Measure Customer Response • Concept testing can measure • Choice between alternative concepts (early in design) • Ways to improve concept • Purchase intent scale • Definitely would buy • Probably would buy • Might or might not buy • Probably would not buy • Definitely would not buy Example Survey, page 156.

  18. Concept Testing Process 6. Interpret Results • Concept selection • Relatively easy, which did the respondents indicatethey liked better? • Demand estimation • What is the estimated demand of the product after launch?

  19. Concept Testing Process Demand Estimation • Durables • Products that are purchased one time. Negligible repeat purchaserate. Examples? • Consumer goods • Goods that have high repeat purchases. Examples? Q = N x A x P • Q = sales (annual) • N = number of (annual) purchases • A = awareness x availability (fractions) • P = probability of purchase (surveyed) = Cdef x Fdef + Cprob x Fprob

  20. Concept Testing Process Demand Estimation Q = N x A x P • Q = sales (annual) • N = number of (annual) purchases • A = awareness x availability (fractions) • P = probability of purchase (surveyed) = Cdef x Fdef + Cprob x Fprob Fdef – Fraction of respondents indicating they would definitely purchase.Fprob – Fraction of respondents indicating they would probably purchase.Cdef and Cprob – Calibration constants usually established by experience of company based upon similar past products.

  21. Concept Testing Process 7. Reflect on Results • Was the concept communicated in a way that is likelyto elicit customer response that reflects true intent? • 2. Is the resulting forecast consistent with observed salesrates of similar products?

  22. Next WeekOctober 24, 2007 • Homework • No Homework • Prepare for Mid-Term covering Chapters 1 – 8, 16. • Prepare for Mid-Term presentation.

More Related