5.8.3 Commercial product testing

The types of consumer testing on the final product and marketing designs vary according to the type of new product and the amount of consumer research in the previous stages. If it is an incrementally improved product, there is already a great deal known of the market and, if it has already been tested in a consumer test, then there will likely be no need for a test market and it can go straight into a launch. But if the new product is a major innovation, it can justify in-depth studies with consumers on the final consumer concept, and large-scale consumer tests as well as a final test market. There can be new products within these two extremes. It is a case of balancing the risk of failure through lack of knowledge with the costs of time, money and other resources. Delay may cause failure because of launching at the wrong time or loss of confidentiality allowing competitors to launch ahead. Lack of knowledge can also cause failure because misunderstanding consumer perceptions may lead to an uninviting product image in the promotion. Some questions to be answered in the testing of the commercial product are shown in Table 5.16. The questions needing answers lead to the type of testing required.


Table 5.16 Questions in commercial product testing

Marketing • What will be the consumers' purchasing/repurchasing behaviour? • What will be the consumers' reactions to the prices, the promotions? • What are the predicted pessimistic, most likely and optimistic sales units    and revenue over the next months, years? • What are the predicted competitive reactions? • What are the predicted market shares? Product • Is the product what the consumers want? • Does the product have the benefits wanted by the consumer? • Does it have the desired attributes wanted by the consumer? • What are the consumers' concerns about the product? • Is the package acceptable, right size? • Are the product and packaging attractive at point-of-sale? • Are the product and pack ethical, legal? • Do the brand and the product image relate to the product? • What is the consumers' total concept of the product?

If a great deal of information on the product and the relationship of the consumer with the product were needed, it would be a consumer use-test of the total product. Consumers would be interviewed, using in-depth questioning, on their reactions to the product, and their predictions of their future behaviour towards the product.

In the consumer test, a statistically representative sample is chosen from the target market(s) so that an indication can be obtained of the opinions and attitudes of the consumers in the market. Usually a single sample presentation (a monadic test) is used and the complete commercial product is tested with appropriate sales promotion and public relations material. The product can be delivered by mail or hand delivery. Information is best obtained by interviewing either personal or telephone, but sometimes self-administered questionnaires are used.

Using consumer tests to predict buying behaviour can be inaccurate as consumers have trouble themselves in predicting future behaviour.

If information on the marketing methods and their effects on consumer buying behaviour is needed, a test market would be used. The consumers would have the opportunity to buy the product in a supermarket, restaurant or other relevant retail outlet. This could be in one or two supermarkets or restaurants or takeaways, using only the in-store promotions, or it can be in a market area with the media advertising and public relations. The consumers who are buying the product and perhaps some of the consumers not buying the product are interviewed, to determine the acceptance, competitive difference, uniqueness, aesthetic worth, brand attitude and product worth. It is important also to determine consumer reactions and consumer buying behaviour in the test market, by interviewing consumers about their purchase and repurchase of the product, their use of the new product and their opinions on the new product. The sales data are found from the computer sales records of the retailers and from this, national sales can be forecast.

Companies can still be experimenting with different options during the test market, for example different prices and different displays (Hisrich and Peters, 1991). The interactions of the variables in the marketing mix can be determined.

Ethical product testing is an area that is increasingly important today. This is relating the product and the marketing to the ethics of the society. Ethical testing is related to a particular society; but basically, in most societies, people want to be able to trust the company not to harm them or use fraud and deceit against them (Earle and Earle, 2000). In the food industry, this is even more important than in other industries because people consume all the products and their health depends on them. For a mutually satisfactory future, all the product testing must be truthful and encompassing so that the company earns a good reputation in launching new products.

During product commercialisation, not only has there to be testing of the product to build up the knowledge about its benefits and defects, but plans developed for both short- and long-term consumer testing after the launch.

Think Break Chilled salmon is being developed in New Zealand for marketing in Europe. The salmon are grown in the same environment in the clean seawater of the Sounds in New Zealand, eating the same food, so their quality is consistent. They are harvested in a rested state (anaesthetised before harvesting), so the flavour and texture during storage are assured. They are packed in a regulated gas atmosphere in special packs to slow down the ageing process in the chilled fish. The aim is to send the salmon by sea which will take 60 days; but there is a need to test the market before the final development of the package and containers. The fish will be flown to Europe for the test market. 1. Discuss the problems in test marketing this chilled product which is to     be sold in supermarkets. 2. Describe how a test market could be set up in one supermarket.     Which country and which type of supermarket could be used? 3. How long would a test market need to run to give a reliable prediction     of sales? 4. Outline how consumers buying the product could be surveyed and     what information would be asked from them. 5. How would you relate the product to the competing products? 6. If the test market is successful, what problems do you identify in     organising a product launch?