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Concept Testing PBM

Concept testing is done after getting feedback on new product ideas to determine customer attitudes before product development. It is a quick and inexpensive way to measure customer enthusiasm for concepts. There are four main approaches to concept testing: narrative tests using descriptions, picture/sketch tests, prototype tests using models, and virtual reality tests using computer images. Once concepts are generated, they are evaluated using methods like product development criteria reviews, concept testing, scoring models, "snakes plots" comparing profiles, and financial analysis of expected commercial value.

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315 views

Concept Testing PBM

Concept testing is done after getting feedback on new product ideas to determine customer attitudes before product development. It is a quick and inexpensive way to measure customer enthusiasm for concepts. There are four main approaches to concept testing: narrative tests using descriptions, picture/sketch tests, prototype tests using models, and virtual reality tests using computer images. Once concepts are generated, they are evaluated using methods like product development criteria reviews, concept testing, scoring models, "snakes plots" comparing profiles, and financial analysis of expected commercial value.

Uploaded by

Amaresh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Concept testing

After getting feedback about its new product ideas and concept development concept
testing is being done .concept testing determine customers attitudes before product
development . It’s a quick and inexpensive ways of measuring customer enthusiasms
Concept testing incorporates customer opinion into the evaluation process.
Other question during a concept test can include reasons why the concept is ? or is not
Appling? Main strength of the products key weakness of the product concept and
suggestion for improving the proposed product concept
Or research methods
There are 4 approach for conducting a concept test

A the narrative concept test


B the picture / sketch concept test
C The prototype concept test
D The virtual relating concept test

Description

A) The narrative concept test


here a test description of the concept being presented to consumers for their opinions.

B) The picture / sketch concept test

Here a b/w or drawing is presented to consumers for their for opinions is presented to
consumers for their opinion

C )The prototype concept test -Here the consumer is shown and may be able to handle
a facsimile(just copy/ similar product)of the product, sometimes a working prototype of
the product is shown . The consumer, there for witness the product firsthand

D )The virtual relating concept test

Here the consumer views a computer image of the product and may interact with the
virtual prototype.

CONCEPT EVALUATION

Once a set of product concept has been generated an evaluation of each concept is
conducted.
The purpose of concept evaluation is to refine the set of concept to determine these that
should continue in the product development process.
Five generally accepted approach can be used evaluate concept .In most cases, these
approaches are used together to achieve a border perspective of which concept should be
continued.
These five approaches are
a) product development character review
b) concept testing
c) scoring models
d) snakes plot
e) financial Analysis

a) product development character review


Here the of executives (responsible for) evaluates the respective product concept
against the criteria established in the PDC
A product concept that appears to meet the expectations established in the PDC is
allowed to proceed in the next product development stage
Ultimately the decision for adopting/not adopting using the PDC review approach is
based on managerial intuition and judgment.

B) concept testing
(already discussed)

C) scoring models

These comprise lists of criteria and associated rating scales that are generated by
the team or established by the company .Each individual product concept is then
evaluated on the given criteria by using the given scale
Score across the of criteria are summed to provide a total score per concept
Concept with their scores are given priorities over concepts having lower scores.

Example--

Criterion concept A concept B concept C

Cost to do 4 3 5
Profitability 3 2 5
Size of potential market 5 4 4
Market share expected 1 3 3
Capital investment required 2 1 5
---- ---- ---
15 13 22
The 5 points scale is
1— very good
2— good
3— average
4— bad
5— very bad
D) snakes plot

Here for each product concept the score per criterion is plotted . There fore by plotting
the scoring profiles of multiple product concept a comparison of product concept can be
made regarding which profile is most reasonable or appealing. Typically a favorable
profile would be one with a more stable profile so long as an acceptable minimum score
is achieve a profile could also be considered favorable of a product concept has a higher
score on certain desirable criteria.

e)financial Analysis

There are 2 ways to calculate the financial impact of the product concept.
I) ATAR model
ATAR stands for Awareness ,Trial, Availability and Repeat Purchases.
This approach is typically refers to as a breakdown approach because—an aggregate
market size is broken down by the percentage of awareness in the mkt due to
promotion
The percentage of trial by consumers
The percentage of availability in existing distribution channels
The percentage of consumers who will buy again.
Multiplied by how much will be bought in a given time period.`

ii) ECV Approach (Expected commercial value Approach)

The specific approach calculates the expected commercial value of a particular


product concept using decision—tree methodology.
the
incorporates the probability of technical success
the probability of commercial success
to estimate the overall expected commercial worth of a particular product concept.

ECV = (NPV*Pcs-C)*Pts-D

Where
ECV= expected commercial value of the product concept.
NPV=net present value of the project future earnings
Pcs=probability of commercial success
Pts=probability of technical success
D=development costs(remaining in the project)
C=commercialization costs

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