Title

A framework for optimizing the cost and performance of concept testing

Document Type

Journal article

Source Publication

Journal of Marketing Management

Publication Date

7-1-2012

Volume

28

Issue

7/8

First Page

1000

Last Page

1013

Keywords

concept testing, generalisability theory, cost optimisation

Abstract

To anticipate the likely market demand better and identify the best customers to target with potential new products early in their development, concept tests need to provide adequate data quality for the objectives of measurement. Generalisability theory provides a framework where a generalisability study can be conducted to identify each possible aspect of a measurement as a factor that may be a potential source of variability. When a limited budget is available, optimising measurement designs involves a trade-off between the accuracy of the data (i.e. generalisability coefficients) and cost considerations. Building on previous and ongoing research, this study presents a multivariate optimisation procedure to achieve the most cost-efficient measurement design under the pre-specified generalisability coefficient constraint. We used the available online concept testing data to illustrate how to optimise the measurement cost by sampling along the facets that contribute to the total error variance in different iso-generalisability designs. The findings may help to facilitate decision making for the sampling of respondents, concepts, items, and occasions in the design of concept test. However, the optimisation framework may be applied more generally to improve the effectiveness and efficiency of other customer tests in marketing.

DOI

10.1080/0267257X.2011.615336

Print ISSN

0267257X

E-ISSN

14721376

Publisher Statement

Copyright © 2012 Westburn Publishers Ltd

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Peng, L., Li, C., & Wan, X. (2012). A framework for optimizing the cost and performance of concept testing. Journal of Marketing Management, 28(7/8), 1000-1013. doi: 10.1080/0267257X.2011.615336