The product development team at XYZ Fireworks Company has worked on several modifications for their unique backyard fireworks. The most promising development is a new type of sparkler that explodes into five different colors. Based on the positive feedback from employees who home tested the fireworks, management thinks the new home based fireworks will be a major seller. It has been decided to test market the product. If you were the CEO, what information would you want from the test market? What constraints would you want the test-marketing to operate under and why?© BrainMass Inc. brainmass.com October 17, 2018, 12:34 pm ad1c9bdddf
In the Entrepreneur's Guide to Market Research, Wenzel (2012) defines Market research as the study of the demographic characteristics of our customers (and potential customers), their needs and desires, our market competition, emerging technologies, and market trends. "We perform market research in order to reach a new understanding of the size and growth of our market, who exactly our customer and potential customers are, what types of products and services our customers and potential customers most desire, and who our competition is. Market research can also tell us where and how we can reach our customers and potential customers (e.g., via which websites, publications, ...
This solution provides information on test marketing and its constraints.
Marketing Concept Testing: Alpha error, beta error
See attached file.
When should a marketing manager (1) rely on intuition (that is, proceed with a new product idea or try a new retail format without marketing research), or (2) rely on concept testing (testing (a) the idea and/or (b) the prototype)?
The readings suggest that testing concepts when they are in the idea stage results in two types of error:
(1) alpha error - predicting that the idea for a product or retail format will be successful and the product or retail format turns out NOT to be successful and
(2) beta error - predicting that the idea for a product or retail format will NOT be successful and the product or retail format turns out to be successful
On the other hand, the readings suggest that testing concepts when they are in the idea stage is helpful if:
(3) predicting that the idea for a product or retail format will be successful and the product or retail format turns out to be successful
(4) predicting that the idea for a product or retail format will NOT be successful and the product or retail format turns out to NOT be successful
demonstrate your understanding of alpha and beta errors, when secrecy in New Product Development is important, when testing is required, and (if testing is required) the types of testing that firms can consider, the relationship between idea (concept) testing and prototype (concept) testing, what is conjoint analysis, when is it appropriate to use conjoint analysis to test product concepts and ensure that you demonstrate your learning of the marketing research concepts and frameworks for analysis outlined as follows:
Manage Marketing Research to Evaluate of a Concept
please cite any work used, thank you