1. CONSUMER TESTING Objectives of Module l Learn the various types of consumer tests l Know when to use them www.AssignmentPoint.com

2. FST 650 l Who is the best judge of attributes such as flavor, texture or color? l The Product Developer? l Marketing? l Senior Management? l The consumer? www.AssignmentPoint.com

3. Marketing Issues are Different for Foodservice, Food Processor and Consumer Products Industrial Consumer DemandDerivedDirect Purchase DecisionComplex Sometimes on Impulse Negotiation OftenSeldom Customer Service YesSeldom www.AssignmentPoint.com

4. BUT ALL FOOD PRODUCTS NEED TO BE TESTED FOR CONSUMER or CUSTOMER ACCEPTANCE!!!!! www.AssignmentPoint.com

5. SEQUENCE OF PRODUCT CONSUMER TESTING Expert Evaluation Employee Testing Guidance Testing Market Research Test Market National Roll-out Product Development Marketing www.AssignmentPoint.com

6. PURPOSE OF CONSUMER TESTS l Consumer Guidance Texts – Aids further product development – Identifies areas of needed improvement l Market Research Tests –Measures consumer acceptance –Estimates potential market size –Identifies product claims www.AssignmentPoint.com

7. CONSUMER RESEARCH OPTIONS Pre-Prototype Post-Prototype Stage Qualitative Quantitative Depth Interviews Focus Groups Expert Judgment Surveys Concept Tests Perceptual Maps Conjoint Analysis Product Use Tests Bases Tests Lab Test Market Test Market www.AssignmentPoint.com

8. SCOPE OF CONSUMER TESTS l Expert Evaluation –1 to 5 scientists in a Laboratory l Employee Testing –Sensory Booths, Hall Panels – 25-35 respondents l Guidance Testing –Focus Groups – 8-12 respondents –Central Location Tests, Mall Intercepts – 50-100 respondents –In Home Use Tests – 100 respondents l Market Research –In Home Tests, Controlled Store Tests – 1000-5000 respondents l Test Market – 5K – 3 Million consumers www.AssignmentPoint.com

9. Qualitative Research Methods are Often the Most Appropriate to Use for l Generating Ideas l Understanding the Consumer – learning their language l Evaluating Concepts, Strategies and Tactics l Pre-testing of Quantitative Research www.AssignmentPoint.com

10. Focus Group and One-On-One Interviews Present a Choice Focus Groups In-Depth Interviews Cost LessMore Confidentiality LessMore Interactions SubstantialNone Peer Pressure Yes No Logistics DifficultSimpler www.AssignmentPoint.com

11. TO CONDUCT A FOCUS GROUP 1. Select a Moderator 2. Develop a Screener 3. Determine Makeup of Group 4. Recruit Participants 5. Write Discussion Guide 6. Schedule facility www.AssignmentPoint.com

12. Quantitative Consumer Research is Often Needed, but Not Always Feasible Some Small-Sample Quantitative Research Works l Conjoint Analysis l Multidimensional Analysis (Perceptual Mapping) www.AssignmentPoint.com

13. Conjoint Analysis Determines Relative Importance of Product Attributes For a new cookie, e.g. AttributeRelative Importance Price31% Flavor21% Crispness18% Color12% Size 9% Brand Name 6% Aroma 3% 100% www.AssignmentPoint.com

14. Questionnaire Construction l Keep it Simple l Avoid Ambiguity l Avoid Double-barreled Questions l Avoid Leading Questions l Avoid Overgeneralization or Oversimplification l Response categories must be mutually exclusive www.AssignmentPoint.com

15. Basic Types of Tests l Paired Comparison –Used when benchmark products are available –Which do you prefer and why? l Monadic –Used for unique products –How much do you like it? l Proto-monadic – Combines the above www.AssignmentPoint.com

16. BASES TESTS – A. C. NEILSEN l First, obtain Consumer’s reaction to the concept only l Then have them try the product www.AssignmentPoint.com

17. Questions to Ask Respondents l Overall Preference (if a pair test) l Degree of Liking l Intent to Purchase l Likes and Dislikes – (three times) l Reaction to Attributes –Just About Right Scores l Other Product Questions –Uniqueness –Frequency of Use, etc. l Demographics www.AssignmentPoint.com

18. Hedonic Scales l Can range from 2 – 9 points l Verbal descriptors required l For Example – 5 point scale for Purchase Intent –1. Definitely would buy –2. Probably would buy –3. Might or might not buy –4. Probably would not buy –5. Definitely would not buy www.AssignmentPoint.com

19. SCORES YOU HOPE TO SEE l Statistically Significant Preference (e.g. 60/40 among 100 respondents) l 70% Top Two Box Purchase Intent l 65% Just-About-Right l In Bases tests, increase in acceptance after trying the product www.AssignmentPoint.com

20. Key Takeaways - Consumer Testing Module l The consumer or customer is ALWAYS right. l Product Development should use consumer guidance testing to determine how to further improve new products before Market Research tests. l Do not let Marketing use guidance testing to make marketing decisions www.AssignmentPoint.com