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Concept testing

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A food company wants to develop a new salad-dressing powder. The consumer mixes the powder with water, shakes the bottle, and you get fresh dressing. The company is trying to compete against another company that has a powdered dressing that is mixed with oil and vinegar. The company plans to conduct blindfold taste tests, asking consumers to compare the new product with a variety of alternative dressings currently marketed. But the new-product development team fears that the results from this test may not be fully reliable, and it wants to test its concept in at least three other ways. It also wants to test alternative formulations of the dressing, including one that is sweeter and one that is spicier.

Suggest some additional concept-test formats to the development team.

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https://brainmass.com/business/product-management/concept-testing-581079

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One of the concept taste formats could be at home tests. Respondents can be recruited online and free samples can be mailed to them. The advantage of at home testing is that it allows for better geographic dispersion. Further, ...

Solution Summary

Discusses concept testing alternatives for new salad dressing powder.

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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

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