Before You Invest, Conduct New Product Concept Testing

New product concept testing is critical before investing in the development. Now you have a great new product idea, but what is the potential market size? And will customers pay more for this product than for existing products addressing the same need? How strong are the individual component features?

New product concept testing will help you with these critical questions.

Various Analytical Techniques Useful

Conjoint analysis, MaxDiff analysis and other techniques allow you to segment the market to identify the high-potential target market. While MaxDiff analysis lets you understand the relative importance of different features to the consumer and to segment the market based on those importance factors, conjoint analysis lets you assign the value of features by asking respondents to evaluate the relative attractiveness of different bundles of features. Conjoint analysis also allows the development of “what if” models for new product concept testing for the value of features in different combination sets to compare attractiveness and profitability.

Understanding the value of features and benefits that have the highest appeal to your target market through new product concept testing allows you to craft the most effective marketing communications to facilitate adoption of new products.

Quantitative concept

Before You Invest, Conduct New Product Concept Testing

Various Analytical Techniques Useful