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 is that 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 do 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.
Market research for new product development help companies understands the appeal of a new 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 of Conducting Product Demand Surveys?
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:
- Hosting a kickoff meeting to discuss challenges, objectives, and more.
- Drafting the survey document for your approval.
- Programming the survey.
- Finding quality respondents based on your target demographic.
- Managing fieldwork on a continual basis.
- Cleaning the data to assure all results are 100% valid.
- Interpreting the results and creating a market research report.
- 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.
New Product Demand Survey Question Examples
Just like most products, every online survey is different. When creating questions for a new product demand survey, a market research company takes the unique needs and objectives of the client into consideration.
However, for the sake of this blog post, here are a few example survey questions to help get you thinking.
- How often do you use [INSERT TYPE OF PRODUCT]?
- What brand are you currently using for [INSERT TYPE OF PRODUCT]?
- What do you like most about [INSERT TYPE OF PRODUCT]?
- What do you like least about [INSERT TYPE OF PRODUCT]?
- How interested would you be in purchasing a product that [INSERT WHAT THE PRODUCT DOES]?
- How much would you be willing to pay for a product that [INSERT WHAT THE PRODUCT DOES]?
Additionally, asking key demographic questions such as age, gender, income level, can help your team create data-driven customer personas around the new product.
Look for more insight on this type of market research? Watch our short video to learn 3 tips for product development research.
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 [email protected]
- 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.