It is the assessment
of the overall appeal of the product or service being proposed. The idea is
that before a firm rushes a product or service into development, it should be
confident that the product or service is included in the customers want. It has
2 components, they are-
(a)Product/service desirability
It means
analyzing about what extent the proposed product/service is being desired and
to determine whether the product/service is able to fulfill the needs. A
concept test is helpful to determine easily about product/service desirability-
Concept test
A concept
test shows a representation of the product or service to prospective users to
gauge customer interest desirability, and purchase intent. It includes-
a. A
description of the product or service being offered.
b. The
intended target market.
c. The
benefits of the product or service.
d. A
description of how the product will be positioned relative to similar ones in
the market.
e. A description
of how the product or service will be sold
f.
Information about the founder or founders of the firm.
(b)Product/service demand
It means to
determine if there is demand for the product or service. There are two
techniques-
Buying intention survey
A buying intentions survey is an
instrument that is used to gauge customer interest in a product or service. It
consists of a concept statement or a similar description of a product or
service with a
short survey
attached. The statement and survey should be distributed to 20 to 30 potential
customers Each participant should be asked to read the statement and complete
the survey.
Library, Internet, and Gumshoe Research
The second way to
assess demand for a product or service idea is by conducting library, Internet,
and
gumshoe research.
Library, internet often serves as best source of knowledge and data, with the
help of internet we can know about the demand of a product/service and also the
same purpose can be done by the various important books, journals, articles
from library. Gumshoe research refers to detective analysis. It is the process
of scrutinizing data about demand of a product by hiding identity while
collecting data from potential customer.
