Kuliah 8 CONCEPT PRODUCT TESTING Dira

Kuliah 8 : CONCEPT & PRODUCT TESTING Dira Ernawati, ST. MT - P 3

Concept Testing A concept test is a test of a product concept evaluated by a sample of the target segment. • Which of several alternative concepts should be pursued? • How can concept be improved to better meet customer needs? • How can we deliver greater customer value? • How many units are likely to be sold? • Should development be continued? Dira Ernawati, ST. MT - P 3 2

Concept Testing Formats • Face-to-face interaction • Telephone • Postal mail • E-Mail • Internet • Focus Group Discussion Each of the above formats present some risk of sample bias. Dira Ernawati, ST. MT - P 3 3

Communicating the Concept • Verbal description • Sketch, Photos & Renderings • Storyboard • Video • Simulation, Interactive Multimedia • Models and Prototypes Match the survey format with the concept communication mode Dira Ernawati, ST. MT - P 3 4

Questionnaire • Purchase intentions (”Would definitely buy, probably buy, …”, “Frequency of purchase”) • Probability of Purchase • Likes & Dislikes • Uniqueness Dira Ernawati, ST. MT - P 3 5

Concept Test Example ATTACK - A New Kind of Pain Reliever Pain relievers are one of the most widely used home medications, and the main ingredient of those products is aspirin. That’s because aspirin works so effectively to relieve headaches, pain, and fever. But recent studies indicate that aspirin has side effects. As many as 70% of the people who frequently take pain relievers can suffer from upset stomach, heartburn, thinning of the blood, and even certain allergic reactions. Now a new pain reliever called ATTACK is available in two strengths, regular and extra-strength. ATTACK has all the effectiveness but it has none of the side effects. ATTACK gives you fast, effective relief, but it won’t irritate or upset your stomach. That’s because the pain reliever in ATTACK is acetaminophen - a pain reliever which has long been known for its effectiveness and absence of side effects. Next time you need fast, effective pain relief, without side effects, try ATTACK. Dira Ernawati, ST. MT - P 3 6

Perceptual Map Gentleness Tylenol • o Concept 1 Concept 2 o Bayer • • Bufferin • Anacin Dira Ernawati, ST. MT - P 3 Effectiveness • Advil 7

Ideal Vector/point Concept 1 • • • • Tylenol • • • • o • • • Gentleness Ideal vector Bayer • o Concept 2 Ideal Point Effectiveness • Bufferin • Ideal Point: • Plot individual’s importance scores (e. g. how important is gentleness? ) • Take average for segment ideal point. Dira Ernawati, ST. MT - P 3 8

“Top 2 Box” Purchase Probability Intention Freq Translation I would definitely buy 5% x 80% I would probably buy 36% x 33% I might or might not buy 33% x 0% I would probably not buy 16% x 0% I would definitely not buy 10% x 0% Estimate of purchase probability (PP) Dira Ernawati, ST. MT - P 3 = = = . 04. 12 0 0 0 = . 16 9

Questions Answered Using Conjoint • How important is each attribute? • What is the utility (weight) of each level of each attribute? • How does product A compare with Product B? • What product configuration generates the most interest (has the highest total utility)? Dira Ernawati, ST. MT - P 3 10

Attribute Importance On a 1 to 7 scale, with 7 being very important and 1 being not important at all, how important are the following product attributes in purchasing a laptop computer (circle one for each product feature): Not Important At All Processor speed 1 2 3 4 5 Very Important 6 7 Battery life 1 2 3 4 5 6 7 Weight 1 2 3 4 5 6 7 Dira Ernawati, ST. MT - P 3 11

DIRECT IMPORTANCE RATINGS VS. CONJOINT ANALYSIS DIRECT IMPORTANCE RATINGS Respondents make choice on product bundle. Respondents make choice on feature. Similar to real purchase. Unnatural response. Requires translation to overall product benefit. Respondents make choice on specific product feature values. Respondents make choice with no reference to the range of values. Respondents forced to make tradeoffs between features which leads to more differentiation between feature priorities. Respondents likely to say all features are important when no explicit tradeoffs are asked for. Dira Ernawati, ST. MT - P 3 12

DIRECT IMPORTANCE RATINGS VS. CONJOINT ANALYSIS Average Importance Ratings Direct Ratings Average Importance Ratings Conjoint Analysis Service Manuf Reliability Price 1 2 Not Important 3 4 5 6 7 Very Important Dira Ernawati, ST. MT - P 3 0 100 Conjoint Relative Importances 13

PRODUCT TESTING Once a product is introduced… • 35% of consumer products fail (65% successful) • 20% of industrial products fail (80% successful) • 18% of service fail (82% successful) Dira Ernawati, ST. MT - P 3 14

PRODUCT TESTING OBJECTIVE : TO DETERMINE: • Whether the product meet the concept statement or not? • What are the product’s strengths and weaknesses comparing to other brands • How can the product be improved? • How does the consumer behavior change? Dira Ernawati, ST. MT - P 3 15

TEST DESIGN : • MONADIC PRODUCT TESTS ( 1 PRODUK) • SIMULTANEOUS PRODUCT TESTS • SEQUENTIAL PRODUCT TESTS SUBJECT : • EMPLOYEES • CENTRAL LOCATIONS • HOME OR WORKPLACE Dira Ernawati, ST. MT - P 3 16

QUESTIONARE ATTRIBUTE RATING How important : Not Important Taste 1 2 Appearance 1 2 PREFERENCE Dislike Brand A 1 2 3 Dira Ernawati, ST. MT - P 3 3 3 Important 4 5 4 Like Brand B 5 17

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• Break-even analysis: shows how many units must be sold to cover fixed costs and variable costs per unit. • Payback: the number of years the company expects that it will take to pay back the original investment. You solve for the year in which the cumulative margin equals total fixed costs. Dira Ernawati, ST. MT - P 3 19

• Return on Investment (ROI): shows one’s return on total investment as measured by net income divided by average owner’s equity. The ROI % is compared to the firm’s opportunity cost of capital. Dira Ernawati, ST. MT - P 3 20

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