Concept Test
What is a Concept Test?
A concept test is a market research method that companies use to evaluate new or enhanced product, service and offering concepts from the perspective of relevant target groups. It reveals which concepts achieve the highest preference, which product attributes drive this preference, and how factors such as brand and price influence the purchase decision.
A concept test therefore provides a sound basis for decision-making, enabling companies to align their offerings with the preferences of potential customers before development, market launch or further optimisation.
What is the Objective of a Concept Test?
The objective of a concept test is to determine how a product, service or other offering should be designed to make it as attractive as possible to the relevant target group. To achieve this, different variations of an offering are compared. These may differ, for example, in terms of brand, product features, scope of services or price.
This makes it possible to determine:
- which offering variation achieves the highest preference,
- which product attributes and services are particularly relevant to the purchase decision,
- how brand and price influence the decision,
- how preferences differ between different target groups, and
- what market, sales and revenue potential different offering variations provide.
A concept test thus identifies the relevant drivers of the purchase decision and provides a sound basis for designing and further developing products, services and other offerings.
How Does a Concept Test Work?
First, the relevant attributes of an offering and their possible variations are defined – for example, brand, product features, scope of services, conditions or price. These are then combined to create different offering variations.
As part of an online survey, respondents from the relevant target group – for example existing or potential customers – are presented with a selection of different offering variations. They evaluate these according to predefined criteria. Depending on the research design, respondents may, for example, be asked whether they would consider the respective offering.
The results are then analysed using appropriate statistical methods. Depending on the research question and study design, a conjoint analysis may be used. This makes it possible to quantify the influence of individual product attributes and their variations on customer preference and to identify the offering configuration with the highest purchase probability.
Based on these findings, different combinations of offerings and prices can be evaluated and specific, fact-based recommendations for product design, scope of services and pricing can be derived.
What Are the Benefits of a Concept Test?
Concept tests support companies in developing new products and services, optimising existing offerings and prioritising product and service attributes. Particularly when it comes to innovations, evaluating concepts from the customer’s perspective at an early stage helps identify the most promising concepts and provides greater confidence in investment decisions.
The influence of brand and price as well as differences between target groups can also be analysed. In this way, a concept test helps reduce investment risk and enables decisions regarding products, services and pricing to be based on actual customer preferences.
While a concept test focuses on the attractiveness and design of specific offerings, a more comprehensive brand analysis provides deeper insights into the drivers of customer behaviour and market success.
Contakt
If you have any questions or would like to discuss this topic further, please feel free to schedule a non-binding consultation call.
