The Four Dimensions of Concept Testing in a Nutshell
As we move to the fourth and final dimension of concept testing in this week’s article, let’s briefly recap the Actionable Concept Testing Model. We treat the following dimensions as independent components, measured separately and analyzed both separately and together:
- Problem Urgency
- Solution Fit
- Adoption Velocity
- Market Impact
We’ve already covered the first three dimensions; today we take a magnifying lens to dimension four, Market Impact.
Dimension Four: Market Impact
The dimension of market impact is all about its name: How will the current purchasing behavior, relative to other “competitive” products, be affected through the introduction of this new product? What will be its market impact?
Understanding how your concept will affect competitive products (and sometimes your own products) is yet another critical piece of the validation puzzle.
Comparison and Competition
As we have said, all products and concepts are a solution to a problem, and insight into which product your audience is most likely to choose if it is aware that your product concept is available at a given price is a strong commentary on the first three dimensions.
If your concept is the sole solution to a yet unresolved problem (unlikely), there are two possible outcomes. The first is that you will have a unique opportunity to monetize this solution. The limits to your product’s success will likely be your ability to inform the affected audience that it is available, to properly communicate its capabilities and benefits, and to make it and deliver it in such a way as to deliver a good experience. Still lots to do for sure, but much of the mystery is removed!
The second possibility if yours is the sole solution to the problem ties back into dimension one: “Is that because no one is seeking a solution?” How urgently does your audience actually need this problem solved? If there isn’t a high urgency, your concept may not be worth further investment.
If your product is not the only solution (much more likely), it will be important to discover which competitive offerings in the market your product is most likely to displace, if any, and why. This also comes with the opportunity to identify and understand the distinctions between your concept and theirs (e.g., quality, price, features). These distinctions can help you make modifications to your product in areas it is not competitive (if it is an early stage concept test), and/or draft the best messaging for your marketing efforts. Of course, the distinction could be only one dimension, such as your brand or the price.
If your concept does in fact fall into that sole solution category and becomes a revolutionary product, it’s still important to understand the potential market impact to gauge the intensity of demand. Many companies have failed while trying to match demand that is far too brisk for the available product inventory.
Market Impact as a Function of Adoption Velocity
On this subject, the Market Impact dimension can receive detail from the Adoption Velocity dimension, and vice-versa.
High adoption velocity products are frequently very favorable on cost-value for the customer; therefore, careful review of which product(s) it is replacing can provide a wealth of information.
What It Means and Why It Matters
Understanding how the market will be impacted by the release of your concept, or vice versa, is critical intelligence to understand the new set of market conditions you will be faced with following product launch. Coupled with the other four dimensions of the Actionable Concept Testing Model, you and your team will have greater clarity regarding your new product’s prospects.
How We Help
Actionable Research has designed a concept testing methodology that approaches the required dimensions in a specialized and successfully-proven way. If you’d like to learn more about how we can design a unique concept test for you, please contact info@actionable.com.
