READINGS TEST 2 - product - READINGS TEST 2 Concept Testing...

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READINGS TEST 2 Concept Testing Pg. 161-162: Pros and Cons of upfront evaluations -the practice is spreading because of quality, time, cost and marketing -biggest cause of a new product failure is that the intended buyer did not see a need for the item (no purpose, value or net worth of price) -save time by gathering information and making decisions that help assure the product will move through development fast -settle on a product positioning statement and a target market Pros o Lower costs o Avoid rising cumulative expenditures curve o Elimination of the many losers naturally picked up in an aggressive concept generation program Pg. 164-166: Does concept testing always make sense? Why or Why not? No it does not It is a mandatory part of the process for makers of consumer packaged goods Business to business firms have always spent much time talking with users about their needs and problems, what suggestions they have, what they think about various ideas and so on When it doenst make sense o When the prime benefit is a personal sense (aroma of a perfume or taste of a new food) Must have some sort of product to demonstrate o New art and entertainment are also hard o When it embodies some new technology that users cannot visualize o Firms sometimes mismanage concept testing and then blame the tool for misleading them Consumers sometimes just don’t know what problems they have (microwave oven) o Also doubts about industrial products and on services When it makes sense When consumer can make judgements Pg. 167-168: Know the three purposes of concept tests Part of the prescreening process 3 purposes 1. Identify the very poor concept so it can be eliminated
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