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Marketing Concept Testing: Alpha error, beta error

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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

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Concept testing
According to Hoffman, Kopalle and Novak (2010), concept testing is the use of qualitative and quantitative methods in determining a consumer's reaction with regards to the introduction of a new product to the market.

A marketing manager should rely on intuition or concept testing after evaluation of a product has already been carried out and significant alpha and beta errors noted.
Visual prototype model does not embody a final product's functions, but it captures the relevant product features such as color and surface textures (Arora 2002).

Validation testing is normally carried out to ensure that software functions as required. It is almost impossible for a software developer to predict how an end-user will use a program that they have designed. This is due to; the instructions provided in the documentation may be interpreted wrongly. A number of software builders make use of alpha ...

Solution Summary

Marketing concept testing for alpha error and beta errors are examined.

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