Concept testing, the survey for optimal decision-making

Concept testing studies are essential for companies seeking to innovate. They enable the measurement of an idea's effectiveness prior to its production phase, help understand consumer expectations, and determine if an idea is market-viable. In this article, we explore this type of marketing study: how concept tests work, why they are important, and how brands can benefit from them.

What is concept testing?

A concept test is a marketing research method that involves evaluating an idea, product, or service with a representative group of consumers. This method allows for gathering feedback, opinions, and reactions to determine if an idea is market-viable before putting it into production. They can be used to evaluate existing products, product ideas under development, packaging, advertisements, slogans, brand names and identities, prototypes, and new services.

Concept tests can be conducted in various ways, but the most common method involves presenting the idea to participants (in written or visual form), then asking them specific questions, noting their level of interest, purchase intent, or overall evaluation of the idea.

Monadic testing: a specific concept testing methodology

A monadic test is a concept testing technique. It involves having different subsamples evaluate each considered option separately. The different concept versions are presented one by one to these respondent subsamples, who are asked the same set of questions. Comparing the final results then allows for identifying the option with the best consumer impact.  

How to conduct a concept test?

Most concept tests involve a series of common steps:

🤔 Define the idea to be tested: Before starting the test, it is important to clearly define the idea to be tested. This may 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 to be answered.

🎯 Identify the target population: It is important to select a representative consumer population to build your target sample. This population can be determined based on factors such as age, gender, income, place of residence, purchasing habits, and preferences.

📋 Design the questionnaire: It must be designed to gather relevant information about the idea being tested. Questions may include elements 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. You can track them live on the Episto platform!

📊 Analyze the results: The collected data is analyzed to identify trends, patterns, and participant opinions. You can then determine if the tested idea is market-viable!

For comprehensive information on concept testing and other marketing study typologies: consult our Guide.

Why is concept testing important?

Improve consumer understanding for better decision-making

Concept tests allow companies to better understand consumer expectations and ensure their ideas align with market needs and desires. They provide factual information upon which brands can base their decisions, which can help minimize biases and judgment errors.

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 optimise your investments by making informed decisions by providing data on profitability potential.

An Episto 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 optimise its sales. This was the case for a major dairy brand that wanted to test 7 different packaging options. Episto conducted a monadic test on 700 respondents in 3 days. One different product package was shown to a population of 100 respondents in order to compare the results for each option and identify the one with the best impact on consumers. Result: a new packaging in the dairy shelves!

How can businesses benefit from concept testing?

Concept testing can be beneficial in a number of ways.

They enable the development of new products or services by providing insights into consumer needs and expectations, or the improvement of existing products by identifying the most valued features and functionalities.

These studies also help to determine the most effective pricing strategy for brands' products and services by providing them with information on perceived value and consumer purchase intent.

Through concept testing, brands gain the insights needed to create effective advertising campaigns with compelling slogans, images, and messages for their target audiences.

Finally, they represent a valuable tool for identifying market opportunities by providing insights into unmet consumer needs and expectations.

An Episto case study: Choosing the new product for the deli section

A meat product brand needed to test 2 different novelty concepts. Episto conducted a concept test on 500 respondents in 3 days: the different concepts were shown to two populations of 250 respondents in order to identify the most promising version on the market from the point of view of its future consumers. The result: a new product in the deli aisle of your supermarkets! Thanks to Episto, this brand was able to identify the most promising concept, but also who was the core target of this concept and how they would cook the product.  

What are the limitations of concept testing?

While concept testing is a valuable tool for companies seeking innovation, there are also limitations to its utility:

1. Results do not guarantee market success, as there are often unpredictable factors that can influence consumer behavior.
2. Concept tests can be biased if the participant sample is not representative of the target population or if the survey questions are poorly designed.
3. They may lack important information on real-life consumer behaviors, such as interaction with competing products or product perception in a real-world setting.
4. Concept testing can limit creativity by causing companies to focus too much on existing consumer preferences rather than seeking to create new needs or market segments.

Conclusion

Concept testing is a valuable tool for companies seeking to innovate and develop products and services that meet consumer needs. By providing factual information about potential market acceptance, concept testing can help companies save time and money, reduce risk, optimise 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.

Do you want to test a new concept? Contact us!

Discover other types of marketing studies in our Guide.

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