Mechatronic system design

Chapter 7

CONCEPT TESTING

Dr. Tran Thanh Hung

Department of Automation Technology,
College of Engineering, Can Tho University
Email: tthung@ctu.edu.vn
 Chapter objectives

At the end of this chapter, students can:

• Understand the method for testing
product concepts
• Can apply the method to test product
concepts

2
Phases of Product Development

3
Example: emPower scooter

4
 What is concept testing?

• Concept testing is closely related to concept

selection
• Concept testing is distinct in that it is based
on data gathered directly from potential
customers and
depends lesser on
judgments made by the
development team.

5
 Concept testing: What for?

• Go/no-go decisions
• What market segment to be in?
• Selecting among alternative concepts
• Confirming concept selection decision
• Benchmarking
• Seek for improvement ideas
• Forecasting demand
• Ready to launch?
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 Concept testing

Step 1: Define purpose

Step 2: Choose a survey population
Step 3: Choose a survey format
Step 4: Communicate the concept
Step 5: Measure customer response
Step 6: Interpret results
Step 7: Reflect on results and process

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 Step 1: Define purpose

• Write down the questions the team

wishes to answer with the test:
– Which of several alternative concepts
should be pursued?
– How can the concept be improved to
better meet customer needs?
– Approximately how many units are likely
to be sold?
– Should development be continued?
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– …..
 Step 2: Choose a survey population
• The team should choose a
survey population that mirrors
the target market in as many
ways as possible.
Example: empower scooter has
two main markets:
- urban commuters
- college students
• Sample size should be large
enough
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 Step 3: Choose a survey format

• Face-to-face interaction: Stopping people at

the street / interviews / focus groups
• Telephone: May be targeted to specific
individuals
• Postal mail: Somewhat slower than other
methods, often poor response
• E-mail: Similar to postal mail except
respondents seem slightly more likely to reply
than via postal mail
• Internet: A team may create a Web site for 10
virtual concept testing
 Step 4: Communicate the concept

Concepts can be communicated in the

following ways:
• Written or verbal description
• Sketch
• Photos and renderings
• Storyboards
• Video
• Simulation
• Interactive multimedia
• Physical appearance models
• Working prototypes 11
 Step 4: Communicate the concept
Verbal description:
• The product is a lightweight electric scooter that
can be easily folded and taken with you inside a
building or on public transportation.
• The scooter weighs about 12 kg. It travels at
speeds of up to 25 kilometers per hour and can
go about 20 kilometers on a single charge.
• The scooter can be recharged in about two
hours from a standard electric outlet.
• The scooter is easy to ride and has simple
controls — just an accelerator button and a 12
brake.
 Step 4: Communicate the concept

Sketch
Usually line drawings showing
the product in perspective,
perhaps with annotations of
key features.

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 Step 4: Communicate the concept

Photos and renderings

- Photographs can be
used to communicate the
concept when
appearance models exist
for the product concept.
- Renderings are nearly
photo-realistic
illustrations of the
concept.
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 Step 4: Communicate the concept

Storyboards
A storyboard is
a series of
images that
communicates a
temporal
sequence of
actions involving
the product.
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 Step 4: Communicate the concept
Video
Video
images
allow even
more
dynamism
than the
storyboard

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 Step 4: Communicate the concept

Simulation
Simulation is generally implemented as
software that mimics the function or interactive
features of the product.
Example: user can
control the
simulated device
via a touch screen
or mouse clicks
and can observe
simulated displays
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and sounds.
 Step 4: Communicate the concept

Interactive multimedia
• Combines the visual richness of video
with the interactivity of simulation.
• Can display video, still images and audio
information of the product.

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 Step 4: Communicate the concept

Physical appearance
models = looks-like models
• Often made of wood or
polymer foams and are
painted to look like real
products,
• Display the form and
appearance of a product.

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 Step 4: Communicate the concept
Working prototypes (works-like)
• Use of working prototypes is
also risky: the respondents will
equate the prototype with the
finished product.
• Sometimes separate works-like
and looks-like prototypes can be
used, one to illustrate how the
product will appear in production
and the other to illustrate how it
would work. 20
 Matching the Survey Format with the
Means of Communicating the Concept
The choice of survey format is tightly linked to the
means of communicating the product concept.

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 Step 5: Measure customer response

• Customer response is usually measured

by asking the respondent to choose from
two or more alternative concepts.

• Concept tests also generally attempt to

measure purchase intent.

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 Survey Format

• PART 1, Qualification
– How far do you live from campus?
• <If not 2-4 kilometers, thank the customer
and end interview.>
– How do you currently get to campus from
home?
– How do you currently get around
campus?
• PART 2, Product Description
– <Present the concept description> 23
 Survey Format

• PART 3, Purchase Intent

– If the product were priced according to
your expectations, how likely would you be
to purchase the scooter within the next
year?

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 Survey Format

• PART 4, Comments
– What would you expect the price of the
scooter to be?
– What concerns do you have about the
product concept?
– Can you make any suggestions for
improving the product concept?
• Thank you.

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Example: survey form for the scooter

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 Step 6: Interpret results

• If the team is simply interested in comparing

two or more concepts, interpretation of the
results is straightforward.
• In many cases the team is also interested in
estimating the demand for a product in one
year.

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 Step 6: Interpret results
Quantity of the product expected to be sold
during 1 year:
Q=N×A×P
• N = number of potential customers
• A = fraction of customers who is available and aware of
the product
• P = the probability of purchase (surveyed)
P = Cdefinitely × Fdefinitely + Cprobably × Fprobably
- Fdefinitely: fraction of customers would definitely purchase
- Fprobably: fraction of customers would probably purchase
- Cdefinitely,Cprobably: calibration constants
0.10 < Cdefinitely < 0.50, 0 < Cprobably < 0.25. Without history28
 Example: Factories
Transportation Market
• N = current bicycle and scooter sales to
factories
(150,000)
• A = 0.25 (single distributor’s share)

• P = 0.4 x top-box + 0.2 x second-box

• Q = 150,000 x 0.25 x [0.4 x 0.3 + 0.2 x

0.2]
= 6,000 units/yr
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 Example: College Student
Market

• N = off-campus students (2,000,000)

• A = 0.3 (aware of the product and
available)
• P = 0.4 x top-box + 0.2 x second-box

• Q = 2,000,000 x 0.3 x [0.4 x 0.1 + 0.2 x

0.05]
= 30,000 units/yr 30
 Sources of Forecast Error

• Word-of-Mouth Effects
• Fidelity (độ chính xác) of Concept Description
• Pricing
• Level of Promotion
• Competition

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 Step 7: Reflect on results and
process
The team should think about the impact of the 3 key
variables in the forecasting model:
1. Overall size of the market. Considering
alternative markets for the product can sometimes
increase this factor.
2. Availability and awareness of customers, can be
increased through distribution arrangements and
promotion plans.
3. Fraction of customers who are likely to purchase,
can be increased through changes to the product
design (and / or advertising) that improve the 32
attractiveness of the product.
 Summary

Seven step method of testing concept:

• Step 1: Define purpose
• Step 2: Choose a survey population
• Step 3: Choose a survey format
• Step 4: Communicate the concept
• Step 5: Measure customer response
• Step 6: Interpret results
• Step 7: Reflect on results and process
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