What Is Product Research?

Jul 2, 2021 | Marketplace

Having a great idea is just the first step in creating a new product — you also need to determine if customers will want to buy it. By conducting product research before you launch a new product, you’ll have a better chance of market success.

 

How Does Product Research Work?

Product research is the process of determining whether your idea for a new product or service might be successful and how best to develop and sell that product. This process begins by investigating the market to see if similar products exist. Once you know what’s already available to consumers, you can determine if there’s a demand for your idea.

 

Methods of Product Research

There are several types of product research, including:

Concept Testing

Concept testing is the process of surveying customers about your product idea to determine how they feel about it. Concept testing is very versatile and can be used to evaluate customer responses to many different aspects of your product.

Price Testing

One of the most important features of a product is its price. With price testing, you survey groups with different pricing options to measure demand elasticity, or the correlation between product demand and price. Demand elasticity is a vital piece of information to help you determine which price point will produce the maximum profit.

Product Tests

Before you release your product, you can test-market it in limited areas to study how it may perform. Use different marketing messages, price points and distribution methods to evaluate which tactics produce the best response.

Focus Groups

Hold a focus group of people who use your type of product. You can ask them questions regarding how they feel about different aspects of your product, such as price, quality and user-friendliness. You may choose to use surveys or conduct third-party interviews to eliminate the chance of bias in your interviewing.

Product Demos

After you’ve researched the market, competitive products and potential customers, create a test model of your product. You can present that model to a group of potential customers to get their feedback. If you’ve created a digital product, find beta testers who could be potential users.

Product Surveys

A product survey is an effective way to learn how potential customers feel about your product. Your survey can include questions on what consumers think of different elements of your product and how your design compares to others on the market. These surveys can be done online, over the phone, in person or through the mail.

 

Importance of Product Research

Product research gives your product its best chance of success. By finding out what customers want and adjusting your product accordingly, you gain a competitive edge in the marketplace. Product research also helps you develop goods that have a higher value and bring innovation to the market. With better products, you can meet or exceed your business goals.

 

Product Research Tools From Lucid

Lucid has products that allow you to find the survey respondents you need for your product research efforts. Get in touch with us today to learn more.

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