Testing a New Car or Testing a Consumer Nondurable Product

Recently a reader called and asked how I would respond to a person that was concerned that I was not always using a national probability sample in my research. My initial reaction was that I use both types of samples but for different reasons. Basically, I use the restricted panels for exploratory research and national probability samples for market assessment research. As a matter of fact, I personally do more testing of products with restricted panels than with national panels because I am usually involved in far more product development and assessment studies than market assessment studies.

Before proceeding, let's define the different panels for the sake of clarity. Assume that the product is intended for national distribution and the target user base is Female Head of Household.

national probability sample = all FHH in the U.S. have an equal chance to be in the study  restricted sample = all FHH in two or three cities

Further, let's acknowledge that there are two broad classifications of research, exploration and market potential assessment.

I view nondurable product research much like the manufacturers of automobiles test new cars. First, they will test them in the company test courses to determine initial performance, then they will road test them locally to assess performance under general practical conditions. The third phase will be the introduction of the consumer variable into the learning process and still in the restricted sample format. It is only after the learning process in the development of the car, is it introduced to a national panel for market assessment potential.

In the development of a nondurable product, we identify the consumer need, develop prototypes for lab testing, and if the lab results are promising, we will move to the consumer phase. We use the consumer for two distinct purposes: the development of the product and finally the market assessment.

In the product development phase, we do not need to incur the additional expense of a national panel (except in special cases such as Habits and Practices research). If you suspect there may be a specific regional factor such as lifestyles, ethnicity, environment, etc., affecting acceptance, target studies may be conducted in only those areas to understand the implications. Our focus is on an intimate understanding of how the consumer uses and feels about the product. In this phase of research, we are attempting to maximize the performance of the product as well as enhancing the peripherals such as the physical characteristics and packaging. This is a product development learning stage and not a market assessment task.

It is only after the product and package are developed and maximized that we move to the national arena for evaluation.

In summary, I believe there are two phases to consumer research, exploratory where we utilized the consumer to help us develop the best possible product for the market and the second phase is the utilization of the consumer to assess the market potential of the product. One phase requires a national sample (market assessment) while the other does not (exploratory research).