Developing new products is vital for any organisation wanting to stay competitive in the market. Keeping your product portfolio fresh will help to maintain and even increase revenues and market share. However, there is a high risk associated with the development of completely new products, and this is where market research and concept testing can help.
As many as 9 out of 10 product launches end in failure, highlighting the importance of concept testing when developing new products. There are a number of standard approaches to concept testing, which include; likert scales, first choice approach and ranked preference. However, there is also an opportunity to use prediction markets as an alternative method. An article named ‘The Power of Prediction Markets’, featured in the May 2013 edition of Quirk’s Marketing Research Review and written by Julie Wittes Schlack, discussed the topic of prediction markets and its use in concept testing. However, does the use of prediction markets in concept testing offer any advantages over the standard concept testing approaches?
This question forms the basis of our latest article, in which, we take a closer look at how prediction markets could be used to improve the results of concept testing and whether the method has the potential to replace the standard approaches used nowadays in concept testing.
To read the full article, follow the link below.