While market research can be used in various ways, it can be extremely beneficial when it comes to testing a new product or service.
Here at Drive Research, we conduct new product development research to determine the potential successes and weaknesses of a particular product or service coming to market.
Companies use market research as a kind of insurance to minimize the risk when launching a new product.
Without a doubt, market research is necessary and the research conducted gathers valuable information for any company looking to launch a new product.
In this blog post, we will discuss how market research can help companies launch new products and/or services.
For quick tips on new product development market research, watch this 60-second video.
Reason #1: Understand Your Market
To understand if a new product is valuable to consumers, it is essential to understand the customer preferences and the general needs of a target market.
Once you identify these needs, you can identify the opportunities to introduce new products into the market.
Through this, you can also learn more about the customer’s perception of the company and competitors.
New product development market research is also helpful in understanding key performance indicators such as:
- Customer satisfaction
- Ease of use
- Likelihood to recommend
- Likelihood to purchase again
Furthermore, you can also gain valuable information about consumers’ buying behavior, habits, and decision-making when buying new products.
Reason #2: Competitive Assessment
Every market has competitors, and it is important for companies with new products to understanding who they are, their strengths, and their weaknesses.
Through a competitive assessment, market research companies use primary and secondary research to gather in-depth information about key competitors.
We talk about each type of research in these blogs for more information:
This gives the insight needed to understand how similar or different your product is and how you can gain an advantage.
Reason #3: Beta Test the New Product
Another way market research can be used when developing a new product is through actual beta testing using.
Types of beta testing market research include:
This way, companies can see real-time reactions and suggestions for improving the product before it goes to market.
Additionally, in-home product placement tests have seen a growth in popularity within the past few years.
An in-home product placement test allows consumers to test products in their own homes and then provide feedback during the experience.
This gives companies the advantage of gathering information on consumer’s thoughts of the actual product in their natural, home environment.
Interested in knowing if your product or service is feasible? Our full-service market research company executes new product development studies for brands across the country.
Contact Drive Research for more information.
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