Product development can be a tough process for many organizations and new business developers. Time is generally not on your side and nothing is guaranteed when taking a new product to the market.
What’s worse, you may dedicate significant resources to developing a physical sample or prototype before you really know enough information.
Next thing you know, you have a full-blown dud of a product that never really garnered interest in the first place. How product developers avoid this predicament?
This situation calls for a new product demand survey. In this post, our market research firm will give an overview of what exactly new product demand surveys are, what the process looks like, and what benefits exist by using them.
What are new product demand surveys?
A new product demand survey is primarily conducted to estimate the demand for new products that can be described or have been developed in drawing or concept but have not yet been developed physically.
These surveys use market research to help companies understand the appeal of a product concept and a customer’s likelihood to purchase.
These surveys provide market share estimates for potential products, including current competitive products in the market. This allows the sponsor of the study to see how difficult it may be to break into the fold with their new idea.
New product demand surveys may also go by the name of concept testing surveys. These are largely the same studies, but a concept testing study may involve a physical prototype of the product.
If your business is still in the new product idea generation stage of product development, read about how market research can help here.
What is the process?
The go-to approach for a new product demand survey is an online survey. An online survey is cost-effective, offers a quick turnaround, is measurable, and gathers quality data. The combination of these 4 benefits creates a strong ROI for research clients.
To ensure the study is successful, it is highly recommended to partner with a third-party market research firm.
This partnership will give your company peace of mind, provide access to the firm’s expertise, and prevent bias from using your brand for the survey.
A market research company, like Drive Research, can take the lead on critical steps such as:
- Drafting the survey document
- Finding quality respondents
- Managing fieldwork
- Cleaning the data
- Interpreting the results
- Offering actionable feedback and recommendations
The target respondents for a new product demand survey will most likely be users of similar products in the market.
Speaking with a variety of these customers will show how much they currently purchase from competitors and how much they would switch to your company’s new product.
What are the benefits of conducting a new product demand survey?
By completing a new product demand survey, your business will gain several key insights to help with product development. Without this knowledge, a business is truly taking a shot in the dark.
First, you will be able to measure the standalone appeal of your product concept.
Does it fill a gap in what is available to customers?
Does it fix a common problem?
Does it provide good value?
Find answers to each of these questions through the survey. If the description and drawing of the product don’t resonate with respondents, your business can save a lot of time and money by taking a different path forward.
Second, the new product demand survey will show you how the product idea stacks up against the competition.
Directly comparing your concept to the current alternatives in the market will give you a sense of what kind of share is up for grabs. Unless customers are willing to make the jump from another product to yours, you will have a challenging time selling your new idea.
All this research upfront will give your company a clear direction of whether to further pursue your product concept, revise the design, or move on altogether.
Drive Research is a national market research company in Syracuse, NY. Speak with our experts about how a new product demand survey might work for your next idea.
Ready to contact our team? Here are 4 ways to reach us:
- Message us on our website
- Email us at firstname.lastname@example.org
- Call us at 888-725-DATA
- Text us at 315-303-2040
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.