The benefits and limitations of concept tests
Editor’s note: Julie Tebeka is the country lead, U.K., of Episto. This is an edited version of an article that originally appeared under the title “The concept test, the study to make the best decision.”
Concept testing is essential to marketing research especially for companies seeking to innovate. Concept tests not only help measure the effectiveness of an idea before it goes to production but also helps understand consumer expectations and determine whether an idea is viable in the marketplace. In this article, we explore how concept testing works, why it's important and how brands can benefit from it.
What is a concept test?
A concept test is a marketing research method that involves evaluating an idea, product or service with a representative group of consumers. This method collects comments, opinions and feedback to determine if an idea is viable in the marketplace before it goes to production. Concept tests can be used to evaluate existing products, product ideas in development, packaging, advertising, slogans, brand names and identities, prototypes and new services.
Concept tests can be conducted in a variety of ways, but the most common method is to present the idea to participants (in written or visual form) and then ask them specific questions, noting their level of interest, purchase intent or overall evaluation of the idea.
Monadic testing: A concept testing methodology
A monadic test is a concept testing technique. It consists of having different options considered separately. The different versions of the concept are presented one by one to respondents who are asked the same set of questions. By comparing the results, it is possible to identify the option with the best impact on consumers.
How to conduct a concept test?
Most concept tests involve a series of common steps.
Define the idea
Before starting the test, it is important to clearly define the idea that will be tested. This can include a written or visual description, product specifications, features, benefits and limitations. It is essential to clearly define the objectives of the concept test, including the specific questions that are sought to be answered.
Identify the target population
It is important to select a representative population of consumers to build your target sample. This population can be determined based on factors such as age, gender, income, location, buying habits and preferences.
Design the questionnaire
The questionnaire should be designed to gather relevant information about the idea being tested. Questions can include items such as interest, purchase intent, product perception, benefits and drawbacks.
Collect the data
From the start of the study, data is collected from your target's responses to your questionnaire.
Analyze the results
The data collected is analyzed to identify trends, patterns and opinions of participants. You can then determine if the idea being tested is viable in the marketplace!
The importance of concept tests
Consumer understanding leads to an improved decision-making process
Concept testing allows companies to better understand consumer expectations and ensure that their ideas are aligned with market needs and wants. They provide information that brands can use to base their decisions, which can help minimize bias and misjudgment.
Concept tests save time and money
Concept testing allows brands to evaluate ideas before putting them into production, which can help save time and money by avoiding developing products that are not viable in the marketplace. In other words, they allow you to optimize your investments by making informed decisions by providing data on profitability potential.
A real case study: Changing the packaging of an iconic dairy product
A concept test can be used to choose the packaging of a new product for a brand hesitating between several options and wishing to optimize its sales. This was the case for a major dairy brand that wanted to test seven different packaging options. We conducted a monadic test on 700 respondents in three days. One different product package was shown to a population of 100 respondents to compare the results for each option and identify the one with the best impact on consumers. The result: A new packaging in the dairy shelves!
What are the concept testing benefits?
Concept tests are beneficial in several ways. They allow us to develop new products or services by providing information on consumer needs and expectations or to improve existing products by identifying the features and functionalities that are most valued.
These studies also help determine the most effective pricing strategy for products and services by providing brands with information about consumers' perceived value and purchase intent.
With concept testing, brands have the keys to creating effective advertising campaigns with compelling slogans, images and messages for their targets. Finally, they are a valuable tool for identifying market opportunities by providing information about consumers' unmet needs and expectations.
The limitations of concept testing
While concept testing is a valuable tool for companies seeking to innovate, there are also limitations to its usefulness:
- Results do not guarantee success in the market, as there are often unpredictable factors that can influence consumer behavior.
- Concept tests can be biased if the sample of participants is not representative of the target population or if the questionnaire questions are poorly designed.
- Concept tests may lack important information about real-life consumer behaviors, such as interaction with other competing products or perception of the product in real life.
- Concept testing can limit creativity by making companies focus too much on existing consumer preferences rather than seeking to create new needs or market segments.
Thriving with concept tests
Concept testing is a valuable tool for companies seeking to innovate and develop products and services that meet consumer needs. By providing information about potential market acceptance, concept testing can help companies save time and money, reduce risk, optimize investments and improve decision-making. Although there are limits to their usefulness, concept testing can be conducted effectively by following certain best practices, such as clearly defining objectives, selecting a representative sample, using reliable methods and taking consumer feedback into account. Ultimately, concept testing can help companies successfully innovate and thrive in an ever-changing marketplace.