Market testing

Concept testing (to be distinguished from pre-test markets and test markets which may used at a later stage of product development research) is the process of using surveys (and sometimes qualitative methods) to evaluate consumer acceptance of a new product idea prior to the introduction of a product to the market. It is important not to confuse concept testing with advertising testing, brand testing and packaging testing; as is sometimes done. Concept testing focuses on the basic product idea, without the embellishments and puffery inherent in advertising.

It is important that the instruments (questionnaires) to test the product have a high quality themselves. Otherwise, results from data gathered surveys may be biased by measurement error. That makes the design of the testing procedure more complex. Empirical tests provide insight into the quality of the questionnaire. This can be done by:

Concept testing in the new product development (NPD) process is the concept generation stage. The concept generation stage of concept testing can take on many forms. Sometimes concepts are generated incidentally, as the result of technological advances. At other times concept generation is deliberate: examples include brain-storming sessions, problem detection surveys and qualitative research. While qualitative research can provide insights into the range of reactions consumers may have, it cannot provide an indication of the likely success of the new concept; this is better left to quantitative concept-test surveys.

In the early stages of concept testing, a large field of alternative concepts might exist, requiring concept-screening surveys. Concept-screening surveys provide a quick means to narrow the field of options; however they provide little depth of insight and cannot be compared to a normative database due to interactions between concepts. For greater insight and to reach decisions on whether or not pursue further product development, monadic concept-testing surveys must be conducted.

Frequently concept testing surveys are described as either monadic, sequential monadic or comparative. The terms mainly refer to how the concepts are displayed:

1.) Monadic. The concept is evaluated in isolation. 2.) Sequential monadic. Multiple concepts are evaluated in sequence (often randomized order). 3.) Comparative. Concepts are shown next to each other. 4.) Proto-monadic. Concepts are first shown in sequence, and then next to each other.

"Monadic testing is the recommended method for most concept testing. Interaction effects and biases are avoided. Results from one test can be compared to results from previous monadic tests. A normative database can be constructed." However, each has its specific uses and it depends on the research objectives. The decision as to which method to use is best left to experience research professionals to decide, as there are numerous implications in terms of how the results are interpreted.

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