Concept testing

Our definition of Concept Testing: 

Concept testing is a research technique to estimate the market potential of a particular idea or concept. Concept testing is often based upon purchase intent scores leveraging a wide array of diagnostic information such as product uniqueness, feasibility, desirability, advantages, and disadvantages.

Creating and marketing an idea cannot be profitable if it has no perceived utility to the consumer. Demand forces are especially difficult to predict, and if investment capital is set aside for a commercial purpose which has no utility to the consumer, there will be devastating losses for the investor. While this is not a completely avoidable phenomenon, it can be limited by using risk assessment techniques like concept testing.

When a new idea is being considered for the marketplace, there are precious few tools which allow investors and businessmen to calculate possible risks. There is limited market data available at such an early phase. This is the problem which the concept test is designed to solve. Effectively, consumers are given an opportunity to consider the concept of the product. They will then rate the product based on a variety of metrics.

Concept testing can involve either a description of a product or a test sample. The person being surveyed will often indicate whether or not they intend to buy the item or service. This will involve a scale which judges their level of interest. The nature of the product will determine which metrics are used to judge its success with the consumer. Sometimes these tests will gather data about how unique the consumer feels the product idea to be. It can measure how often the person surveyed might want to experience the concept.

At such an early phase of product development, the concept test provides useful data that might help a company formulate a final version. Sometimes several different prototypes will be evaluated side-by-side to see which one generates the best feedback. The ones that attract the greatest consumer interest during concept testing will feel much safer to investors.

Reading market data is arguably of paramount importance during the developmental phase of a product. If consumer demand is overestimated, this can result in serious losses. Concept testing serves to provide viable data that can help reduce the risk of investing in new products.