Concept Test is a business concept wherein tools such as surveys are used to test the consumer’s acceptance of the product. Hence if you are an owner of a company it is extremely essential for you to test the product before its actual launch in the market. Here in this post we shall talk about what is concept testing, it’s importance and it’s best practices.
What is Concept Testing?
It has reported that about 95 per cent of the product launches fail. The primary reasons for this are the owners misjudgement about the right product for the right market, or in other words, market segmentation. It is obvious that before you want to launch a big product or have an idea which you want to test before actually implementing it, concept testing can be very helpful. It refers to the process of getting your idea evaluated by your target audience before you make it public to the world. It allows you to test a product concept, ad campaign, new logo or even a landing page by getting direct feedback from your target audience. It uses different kinds of surveys to get feedback of the customers as to the idea of a product, service, landing page, or anything else. Based on their reactions, the company can make adjustments to their future projects.
Why To Perform Concept Development Tests?
Suppose your company has a have a new product launch coming up, and you feel that online advertising would be the best channel for advertising the product. But your product is not well received by your audience since they find your advertising interfering. So although you chose the medium which according to you would reach your target customers, it was not actually useful for them. To avoid such mistakes, companies undertake concept development test in order to make changes to the final product before launching it in the market.
Here are some benefits of concept testing which emphasises how important it is for the organization:
- It allows you to present several product prototypes (including its attributes and benefits) before your customer base in order to know if any improvements can be made in the product. Hence provides the organizations with insight on whether to invest their money into any product or its marketing and avoid launching unsuccessful or inefficient campaigns.
- It leaves some room for flexibility. As the concept development is done through surveys and questionnaires, you can tweak the questions according to your requirement. Hence you can frame questions for your audience regarding any aspect of your product, such as pricing, tone, style, features, etc. This way, you can ensure that you get every detail of your product correct before its launch.
- It is also a procedure which every company can undertake.
A well-developed concept development plan helps the business to assess the following areas of product development and launch:
- Identification: it enables you to specify the concentrated segments of the population which the particular product or service appeals.
- Assesment: it also includes testing the alternate options to the main product or service ideas and their appeal to the target market segments.
- Development: the main purpose of concept development is to collect the necessary information for developing the product or service and its promotion, distribution and pricing strategies.
- Positioning: this is an integral part of product launch which includes creating a buzz about your product or services in the minds of your target customers.
What Are the Concept Testing Methods?
There are many methods for conducting concept tests depending upon the kind of product or service you want to bring to your customers. All these methods enable you to minimize the risk of product failure and maximize the revenue potential of such products. A typical survey would include asking the respondents to evaluate the various features, benefits and price of the product in order to gain a better understanding of the key trade-offs.
In order to answer vital questions regarding your product and service, you can consider the following methods.
- Single- Concept Evaluation: In this type of product evaluation, the user only evaluates one feature or aspect of the product. It is a quick and unbiased approach and is user-friendly. They are able to express their opinions about the product or service and whether or not they like its idea.
- Multi-Concept Evaluation: It is similar to the evaluation concept above, the only difference being that it requires the users to evaluate multiple concepts at a time. The participants need to completely analyze the idea of the product or service and then test the next product. But this is a time-consuming method and the participants might lose interest in evaluating over time.
- Concept Selection: In this method, the participants are given two or more concepts to analyze. They have to pick which concept they like the most and their reason for the same.
- Concept Selection and Evaluation: This method combines the single concept evaluation and the concept selection evaluation. In this, the participant can choose their favourite idea and provide an in-depth evaluation of it. This is beneficial for the company since it provides them with the clear picture about the participant’s taste and preferences.
Concept testing is an integral part of any organization whether large or small. It is absolutely necessary before launching a new product or service in the market. So if you want to launch any new product or service into the market, you must know your customer’s reaction first. We hope we could explain to you the basic concept about concept testing and its significance for teh business. If you have any doubts or want us to cover more such topics, please let us know in the comments section below.