New Products Management

1. New Products Management Chapter 9 Concept Testing

2. Procedure for a Concept Test • Prepare concept statement • Clarify specific purposes • Decide format(s) • Select commercialization • Determine price(s) • Select respondent type(s) • Select response situation • Define the interview • Conduct trial interviews • Interview, tabulate, analyze

3. 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.

4. Stimulus Presentation and Response Type Sample of a Plain 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 control weight by reducing the craving for sweets and between-meal snacks. And, best of all, it contains absolutely no calories.” 1. How different do you think this diet soft drink would be from other available products now on the market? 2. Assuming you tried the product and liked it, about how often do you think you would buy?

5. Why Choosing the Criterion is Important Choose between: Mercedes, 5-year warranty, $60,000 Taurus, 3-year warranty, $20,000 • Which do you prefer? • Which are you more likely to buy?

6. Benefit Segmentation in Swimsuit Market Comfort x x x x x x x x x x x x x x x x x x x x x x x x x x x x Segment 3 Segment 2 x x x x x x x Segment 1 x x x x x x x x Fashion Figure 9-3

7. Figure 9-4 Joint Space Map Showing Ideal Points 3 2 Aqualine Comfort 1 Molokai Islands Fashion Splash Sunflare

8. Figure 9-5 Joint Space Map Showing Ideal Vectors Comfort Benefit Segment 1 Aqualine X Overall Islands Molokai Benefit Segment 2 Fashion Sunflare Splash