It can be exciting when your business discovers a great idea for a new product or service. You may have finally identified an opportunity in the market to provide some fresh value!
What’s next? Well, you don’t want to invest too much into the idea until you have some assurances. Ask yourself...
- Is there really a market for it?
- Is it feasible for your business?
- What does the competition look like?
You can learn the answers to these questions by conducting market research. This is what our market research company recommended for a global merger and acquisition (M&A) and strategic advisory firm.
Our experts surveyed likely users of a new service concept to explore what they wanted from the service and how much perceived value it provides.
Below are the objectives, approach, and report details of the market research study.
If you are not quite ready for the survey step, be sure to do a proper market analysis and competitive assessment first.
Read more about the three components of new product development here.
Objectives
A London-based M&A and strategic advisory firm partnered with Drive Research to conduct a market research study.
The goal of the market research project was to understand a variety of factors of a new service concept.
This included concept testing the:
- Appeal
- Value
- Pricing elasticity
- Features
- Types of content
- Other core objectives around their new service concept
The survey ultimately provided the client with unbiased, credible, and representative views to guide decisions. This can be especially helpful when testing the feasibility of a new service or product.
No critical business or strategic decision-making should be made until you have data and customer feedback to support it.
Approach
To address the objectives for the advisory firm, Drive Research recommended an online survey among those who had some type of relationship with the sponsoring client.
The reason our market research company often recommends online surveys for new concept testing is that this methodology offers a quick turnaround for cost-effective and quality data.
There may be no research methodology with a greater return on investment (ROI) than an online survey.
The survey was conducted through client-provided email lists. The email lists contained contacts for:
- Former clients of the firm
- Prospective clients of the firm
Drive Research sent three reminder emails in addition to the initial invitation to boost the response rate.
Just how cost-effective can an online survey be? This is determined by a number of different factors. We discuss each of these 4 factors in this short, 60-second video.
Results of the Concept Testing Survey
The online survey took an average of 10 minutes to complete and included 27 questions. The survey received 79 responses. Fieldwork for the survey began on June 3 and lasted until June 22, 2020.
The concept testing research topline report included background and methodology, key findings, and action items for the merger and acquisition (M&A) and strategic advisory firm.
Our market research company always likes to add a level of consultation to our reports. Charts and graphs mean nothing if you don't know how to interpret them and use them in your strategic planning.
The market research answered the following research objectives:
- How well do prospective users of the service stay informed with market intelligence?
- What are the gaps in current competitive offerings?
- How appealing is the new service concept to prospective users?
- What questions do you have about the service?
- What features would be most important?
- How should the service be promoted?
- What price is reasonable for the service?
- What would convince the right individuals to sign up for the service?
Looking for some tips to help navigate the concept testing process? Here are five pieces of advice to set you up for success.
Drive Research is a market research company in Syracuse, NY. We are constantly helping businesses test a new product or service concept. Check out our market research services.
Ready to contact our team? Here are 4 ways to reach us:
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
Tim Gell
As a Research Analyst, Tim is involved in every stage of a market research project for our clients. He first developed an interest in market research while studying at Binghamton University based on its marriage of business, statistics, and psychology.
Learn more about Tim, here.
