Development of new products require a massive amount of investments. Therefore, one of the most influential applications of market research are the testing of customer reactions to a new product and the measurement of the possibility of approval or objection to a product.
About the research
If applied properly, the market research decreases the risk of failure of a new product or service. On the other hand, the market research does not always provide a clear and precise answer to the future success of a product. It is an analyst’s task in relation to the market research to interpret the received data by using their thoughts and experience and to visualize the existing opportunities.
The content and main benefits of the research
Marketing research comprise highly important issues, such as testing an idea or a concepts, checking out products, determining main specifications of products and services, studying the competition environment, evaluating alternative products, ascertaining market needs, setting a competitive prices, uncovering main benefits of products and so on.
Main issues expected to be studied in the product design research:
- Competitors’ products, their pricing, specifications, distribution and market share
- The possibility of approval or objection to new or modified products
- Predicting the product usage
- Barriers and threats that may hinder the success of the product
- An optimal price for a new product
- The reaction to the packaging concepts
- Customer benefits
For testing various product conceptions that include product specifications, pricing, packaging and similar issues, predicting the product usage, advanced quantitative methods, such as conjoint analysis, SIMALTO analysis and so on, are regularly used.