Looking ahead to the trends that will shape the coming year is a critical exercise for any business. But in 2021, this is perhaps more significant than ever. Consumer behavior has been transformed as a result of Covid-19, as many shifts in behavior have accelerated. This blog post summarizes 5 key trends from our latest report Consumer Trends in Asia: 2021

  1. Vocal for local – Consumers are looking to support brands closer to home
  2. Looking for action – Consumers want to see brands having a positive impact on the community
  3. Racing towards a digital future – Online shopping is booming, ushering in new innovation
  4. Seeking value – Consumers are prioritizing value and saving more
  5. Health is wealth – We’re seeing a marked change in diets as consumers focus on health

Read the summary below or download the full report to learn more about consumer trends in Asia in 2021 and what your business can do to capitalize on them. It’s packed full of insight and analysis from local experts across our 8 Asian offices – China, India, Singapore, Thailand, Vietnam, Indonesia, the Philippines and Japan – and contains inspiring examples of brands successfully tapping into these trends.  

1. Vocal for local – Consumers are looking to support brands closer to home

The economic turmoil of Covid-19 has made consumers more conscious than ever of the impact of their purchase power. In light of this, we expect one of the big consumer trends in Asia in 2021 to be supporting local brands.

In some markets this is manifesting itself in a wave of support for national, rather than global brands. India and China are two markets where this is happening. In India, Prime Minister Modi’s strategy to aid economic recovery in the country is to focus on local manufacturing and supply chains and to encourage Indian consumers to support Indian brands. In response local brands have leveraged this messaging in their marketing campaigns, further promoting the concept. In China, we also see consumers looking to purchase from homegrown brands rather than global companies. This trend was already underway, due to international trade tensions and the growing popularity of Chinese brands, but it has been accelerated further by Covid-19.

In other Asian markets, we’re seeing the emergence of hyper-localization. Now spending more time at home and recognizing the companies that helped them during the height of the pandemic, we are seeing consumers looking to support businesses in their local neighborhoods through challenging economic times.  This is very much a continuation of the behaviors of the behaviors we saw at the onset of the pandemic. In Japan, for instance, the 応援消費  (consume to support) movement went viral, and whilst in Indonesia, consumers were encouraged to #belidariteman (buy from a friend). This sentiment is likely to be important in 2021 and beyond, particularly in the food and drink industry as our research Understanding the impact of Covid-19: Food industry trends for 2020 and beyond indicates. When asked which of the behaviors they’d adopted in the pandemic that they’d continue in future, 42% of Asian consumers told us they plan to continue supporting local food and drink brands, the second highest of any behavior.

2. Looking for action – Consumers want to see brands having a positive impact on the community

When we think ahead to 2021, we mustn’t underestimate the impact of the pandemic. Covid-19 has caused many people to reconsider what is important to them and this has extended to their relationship with brands. Our Brands Exposed research, exploring how Covid-19 has changed expectations of marketing and brands, found that 63% of Asian consumers think that brands need to re-evaluate their role in society in a post-Covid world.

There’s also an expectation that brands need to do more to support the communities they serve, a trend that is more prevalent in Asia than it is in the West. 63% of Asian consumers believe that organizations have a responsibility to contribute financially to their communities, compared to 43% in the US and 51% in the UK. They’re also appetite to see brands going further, leading meaningful initiatives in their communities – 58% of Asian consumers believe this to be importance, compared to just 41% in the US and 46% in the UK.

So what does this mean for brands looking to make their mark in Asia? One thing’s for sure – brands need to be prioritizing actions over words, providing evidence of the steps they are taking to make a difference and the impact that this is having. And this isn’t just confined to the B2C space. Our recent work with Bloomberg understanding the attitudes of business decision makers across 6 markets in Asia and Australia found that 56% are looking for brands that are protecting the underprivileged and vulnerable and a further 56% want to see brands using their resources to give back to society.

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Consumer Trends in Asia: 2021

Download the full report to learn how 5 key trends are playing out across Asia, the implications of this for businesses and success stories of brands successfully capitalising on the trends:

3. Racing towards a digital future- online shopping is booming, ushering in new innovation

Seismic regional and global events have often act as a catalyst for behavioral change and innovation – and Covid-19 is no exception.

In response to regulations, businesses and consumers have adopted online solutions at a rapid rate. In some markets like India this has been accompanied by governmental action to provide digital connectivity in remote rural areas and to low income groups, enabling the delivery of basic services during this time. As such, some demographic groups have experienced the benefits of online shopping for the first time.

Others, already accustomed to shopping online, are doing this more and spending in new categories such as grocery and personal care according to a survey of digital consumers in 6 Asian markets from Bain and Facebook. The research suggests that this represents a permanent shift in behaviors. 83% of those surveyed said they are likely to continue increased spending online after the pandemic. These behaviors aren’t just confined to younger people. There are significant numbers (35%) of older people – aged 55 and over – that share this sentiment.

In response to the rapid growth of online shopping we’re seeing innovation in this space. From shopstreaming in China to a new breed of influencers in Japan, you can read more in the full report.

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4. Seeking value – Consumers are prioritizing value and saving more

The Bain and Facebook study also provides interesting insights into consumers’ attitudes towards personal finance in this period. 57% of the consumers surveyed are prioritizing value for money in their purchases. They are also saving more. The study found that 60% are planning to put more money aside in future and that Asian consumers are two times more likely to start saving more after the crisis than their American counterparts. We see this reflected in our own data, as consumers cut back on non-essentials in Thailand.

Against this backdrop, companies across all sectors will have to work harder to get consumers to part with their cash, clearly articulating the benefits and value of their products, and focusing on building customer loyalty to avoid switching.

5. Health is wealth – We’re seeing a marked change in diets as consumers focus on health

Health has been a big focus in 2020 and we expect this to continue, with it being one of the big consumers trends in Asia to watch for 2021. Our research with Bloomberg reflects this, with 67% of business decision makers across Asia and Australia telling us that taking care of their personal and family’s health is more important than ever.

This is playing out in a number of ways, first and foremost in diets. Our report, Understanding the impact of Covid-19: Food industry trends for 2020 and beyond, found that 59% of  Asian consumers believe that what they eat and drink has changed from the better, with only 6% stating their diet has changed for the worse. This represents a marked difference to Western markets – where just 24% of Americans and 34% of Brits believe what they’re eating has improved. In line with this renewed focus on health, the majority of consumers are also cooking more for themselves and consuming more fruit and vegetables than before the onset of the pandemic. This indicates a opportunity for food and beverage brands to develop healthier versions of their products and support consumers in cooking healthy meals from scratch – be that through recipes or product launches.

But health goes beyond just diet. There’s also a greater emphasis on fitness and on mental health, with PwC reporting that in China, 87% of consumers are focused on taking care of their mental health. There are numerous opportunities for brands to support consumers in these areas, which we analysis in detail in the full report.  

To learn more, download the full report: Consumer Trends Asia: 2021

To learn more about how these trends are playing out in each market, our analysis of the implications of these trends and success stories of brands making inroad in these areas, download the full report.

Alternatively, if you’d like our support in understanding the changes taking place in your key markets and how you can capitalize on these, please get in touch.

The arrival of Covid-19 has brought with it dramatic changes in food and drink purchase patterns. Shelf-stable food like pasta, rice and canned goods flew off the shelves. Immune system boosting ingredients were top of the shopping list. But which behaviors will stick and what are the longer term food industry trends to watch?

We spoke to consumers in 10 countries, as well as our own internal food and beverage experts to understand the global picture and the local nuances and trends in each market. We wanted to understand how people are eating and drinking in this new normal, and what implications this has for the future.

We’ve summarized the key global and local trends in this blog post but for the full findings, download the report: Understanding the Impact of Covid-19: Food Industry Trends for 2020 and Beyond.

Global food industry trends for 2020 and beyond

The pandemic has improved eating and drinking habits across the world

Over half (53%) of the consumers we spoke to told us that since the onset of the pandemic, what they eat and drink has changed for the better. Some countries like India and Vietnam have seen a big swing towards healthier diets, whereas others like the US, UK and Japan have been more consistent. Overall, very few people (just 6%) believe their diet has changed for the worse.

People are cooking more at home and they’re eating more fresh fruit and vegetables

With more time at home, and health high on the agenda, it’s unsurprising that half of consumers globally (51%) are now cooking more for themselves and their families. This trend is more prevalent in some Asian markets, such as India, China, Thailand and Vietnam, than it is in the US, UK or Japan. But even in this market, consumers have found an innovative workaround to sourcing home-cooked meals. Over the past few months, professional chef / dietician delivery services like Sharedine have boomed in Japan. This is where a personal chef will come to a customer’s house and cook a number of dishes from scratch that can be reheated over the coming days. The service even includes grocery delivery!

At a global level, people are also more conscious of what they eat, with a real focus on fresh produce. Half of consumers globally (51%) tell us they are eating more fresh fruit and vegetables. This is more significant than any other dietary changes, such as eating more grains and nuts (adopted by 29%) or eating more meat-free products or dairy and cheese (practiced by just 16% and 13% respectively).

Health-conscious consumers are looking to boost their immune systems and brands are responding

Even now long after the onset of the pandemic, immune-boosting solutions are still at the top of consumers’ shopping lists. Consumers in markets like India are looking to natural ingredients. But others, like those in Thailand and China are making use of a new range of RTD products that have sprung up to meet this need. The “water plus” category has boomed in Thailand, with brands such as Yanhee Vitamin Water, B’lue, VITADAY Vitamin Water and PH Plus 8.5 Alkaline Water coming to the fore. In China, product launches have included milk with immune globulin, Vitamin C fruit tea and Chinese jujube drinks.

Free report

Consumer Trends in Asia: 2021

Download the full report to learn how 5 key trends are playing out across Asia, the implications of this for businesses and success stories of brands successfully capitalising on the trends:

Worries about the origin of food are one of the key food industry trends for 2020 and beyond

When asked which of the behaviors they’d adopted in the pandemic that they’d continue in future, being conscious of where the produce I consume originates from for safety / health reasons came out top. We see this reflected in consumer behavior. Some people in countries like Vietnam and Indonesia have moved away from visiting wet markets, opting instead for mini supermarkets or online solutions. In some markets, there are also significant groups of consumers that are opting to eat more meat-free products, perceived to be less prone to infection. This amounts to 32% of consumers in Vietnam, 28% in India and 23% in China. With these concerns top of mind for many consumers, it’s the brands that prioritize hygiene and safety that will come out on top. We’re already seeing some great examples of this happening, with the help of technology. One example is Haidilao. This hotpot restaurant in Beijing has installed smart robotic arms to prepare and deliver raw meat and fresh vegetables. It’s also introduced technology to track and dispose of food that has passed its expiry date.

Supporting local is a key consideration for many consumers

Across the world people are doing their bit to keep local food and beverage brands afloat. This looks set to continue in future. When asked which of the behaviors they’d adopted in the pandemic that they’d continue, supporting local produce and food and beverage brands came out second highest.

In Japan, this trend has manifested itself in the 応援消費 (Consume To Support) movement. This initiative that went viral, ranking first amongst the top 10 consumer trends in the first half of 2020 according to Rakuten, an online retail giant and Nikkei, a flagship financial newspaper. The term was first created and gained popularity in 2011 when a 3.11 earthquake shook the eastern part of Japan and people showed their support through making purchases from the damaged areas. In the pandemic, we saw a resurgence of this. Consumers purchased from the food and beverage brands hardest hit – farms, manufacturers and restaurants with excess stock – thanks to innovative apps like Pocket Marche and TABETE.

We’ve seen similar movements in other markets. In Indonesia #belidariteman (buy from a friend) was promoted by the Association of Indonesian Young Entrepreneurs (HIPMI) encouraging people to support local. In the Philippines, the traditional value of “Bayanihan” which translates as “spirit of communal unity” has seen Filipinos shopping from local food and beverage brands in these difficult times.

With local being an important purchase consideration for consumers both now and in the future, brands will do well to emphasize their heritage and role in the community going forwards.   

Consumers are looking to food and drink as escapism to create occasions at home

As people spend more time at home, there’s a real opportunity for brands to help consumers create special occasions with their loved ones through the power of food and drink. This could be through providing inspiration for at-home events and special recipes for consumers to cook themselves. It could also be achieved by creating products, services and experiences that can be delivered at home. There are some great examples of this emerging around the world. In Singapore, bar and restaurant, Tippling Club, is offering virtual cook-along sessions with its in-house chef. In Hong Kong, Café Earl Grey is delivering restaurant signatures with simple instructions to cook and assemble at home. These dishes are accompanied by an extensive selection of curated wines and bottled cocktails. And in the Philippines, restaurants are delivering uncooked ingredients so that people can cook their favorite dishes at home.

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Online shopping is on the rise but this is playing out differently in different markets

Food and beverage brands have had to innovate to survive in the wake of local restrictions. Online has played a critical role in this transformation. Consumers across markets have experienced the benefits of online shopping first hand, accelerating its growth. But this has played out differently in different markets. In Vietnam, ghost kitchens have been set up to meet the growing demand for meal delivery. In Indonesia, a jastip service allows consumers to make and receive orders from local wet markets via WhatsApp. And in the UK, where online grocery is more well established, growing numbers of older customers are moving their grocery shopping online. In 2019, just 8% of over 55s in the UK had bought food and essentials online. This figure has now soared  to 25% according to the How Britain Shops Online report.

Country specific food industry trends

Food industry trends in the UK

One of the key global trends we see in the UK is the shift towards supporting local. Office workers in the UK have been encouraged to work from home for the majority of 2020, meaning that food and drink spend has been concentrated closer to home – and we expect to see this continue as working patterns shift as a result of the pandemic. According to Mastercard data, it’s been people shopping and eating out locally, rather than spending money in Central London, that has driven the economic recovery in London. Other key trends in this market include the growing number of silver surfers that are embracing to online grocery shopping as mentioned above and rise of at-home food and drink occasions. As in other markets, brands are anticipating consumers will spend more time at home, and catering to this with services such as online cooking classes and delivery collaborations.

Food industry trends in the US

We expect to see consumers continuing to eat and drink more at home in the US too, as many office workers continue to remotely, and city dwellers flee to the suburbs. Whilst consumers are enjoying cooking at home and planning to do more of it in future, they’re are also ordering more takeout, and looking to meal kit companies for ease and convenience. Attitudes towards health in the US depart from the global trend. Whilst 53% of consumers globally tell us that what they eat or drink has changed for the better, in America only 25% think this is the case. In the US, consumers are viewing health more holistically. Whilst some are looking to food and drink to support physical health, others are using food as a tool to support their mental health, with two thirds of Americans eating more comfort food than before.

Food industry trends in Singapore

Global trends such as the rise of online shopping and a growing focus on health and wellness are reflected in Singapore. In fact, an AIA survey conducted prior to Phase Two of safe reopening found that Singaporeans are allocating the highest portion of their expenses on healthier meal choices. One trend that is more specific to Singapore is the growing importance of sustainability. When it comes to sustainability efforts, Singapore falls behind many other nations in terms of recycling, plastic-use reduction, and food wastage reduction, and this has come into sharper focus as a result of the pandemic, alongside more recent government efforts to achieve a Zero Waste Singapore. In response, we’re starting to see the rise of more sustainable packaging, “ugly” produce and bulk food stores.

Food industry trends in Vietnam

Vietnam has seen big changes in the channels people use for shopping. Online meal delivery has boomed as restaurants have pivoted, and ever more Vietnamese consumers are turning to the mini supermarket, as worries about food safety and origin come to the fore. In line with this, organic food is also growing in popularity, although high prices mean that at present this trend is confined to the middle class.

Food industry trends in China

In China and Hong Kong, global trends around health and eating at home are particularly important, with 86% of Chinese respondents acknowledging their desire to eat at home even after the pandemic ends according to Nielsen. Concerns about food safety are also front of mind, and in response we’re seeing a growing trend towards automation and contactless processes in manufacturing and distribution.

Food industry trends in Thailand

As in Vietnam, meal delivery in Thailand has boomed, accelerating the adoption of online and mobile banking and contactless payment methods. The global trend towards an increasing emphasis on health is evident in Thailand, too with 71% cooking more for themselves and their families and 62% consuming more fresh fruit and vegetables. Many Thai consumers are also looking towards beverages as a way of looking after their health. Drinks containing Vitamin C have seen 47% growth compared
to last year.

Food industry trends in India

Like their counterparts in Thailand, Indian consumers are looking for immune boosting products, but many of the specific trends we see playing out in this market are driven by food safety concerns. As mentioned previously, a significant number of Indian consumers are eating more meat-free food due to worries about infection, and they’re also buying more packaged food. Against this backdrop, street food vendors have had to pivot, elevating their offering, leading to the emergence of gourmet street food.

Food industry trends in Japan

As mentioned above Japanese consumers have been quick to support local brands through the 応援消費 (Consume To Support) movement. This is a trend that we believe will persist in Japan, albeit not as prominently as it does on a global scale. Our research shows that 1 in 4 consumers in the country say they will be more conscious of supporting local produce and food and beverage brands in future, compared to 4 in 10 globally. One emerging trend that is quite specific to Japan is the move towards stocking up on food. In most countries this behavior peaked at the height of the pandemic and has since subsided but in Japan 41% of consumers plan to ‘stock up’ on essentials rather than buying day-to-day in future and 35% are intending to buy more frozen or tinned produce. This can be explained by looking at the specific experience of the Japanese people. In response to natural disasters like earthquakes, typhoons, flooding and landslides, Japanese consumers are used to having to stock up.

Food industry trends in the Philippines

We see this trend towards bulk buying emerging in the Philippines too, where 48% of consumers say they plan to ‘stock up’ on essentials instead of buying day-to-day. Global trends around eating more healthily are also important in the Philippines, which is significant given that the traditional Filipino diet is higher in total fat, saturated fat, and cholesterol than most Asian diets.

Food industry trends in Indonesia

Trends in Indonesia closely mirror those seen globally. There’s been an uptick in online grocery shopping, with a large proportion of Indonesian grocery shoppers (59%) having used e-commerce sites for this purpose according to a Snapcart survey carried out in May. People have also started to adopt online shopping in new categories, such as OTC, multivitamins / supplements, herbal products, and even RX drugs. Cooking more at home, and supporting local food and drink businesses are also key trends in this market.

To learn more about the food industry trends in each market, download the full report – it’s packed full of facts, stats and examples from each country. Alternatively, if you need further support in understanding changing consumer behavior in your market, please get in touch with us. We have a wealth of experience in food and beverage, having worked with the likes of Mars, Unilever and Arla, and would be happy to share our expertise.

Marketing textbooks are filled with examples of products or services that flopped when they hit the market.

Take Juicero, for instance. Investors pumped a staggering $120 million into a Wi-Fi-connected juice maker that nobody indicated they wanted or needed. Unsurprisingly, it was scrapped within two years.

Or consider ESPN’s mobile phone service, priced at $400 and lacking handset choice for the target audience. The service was swiftly shut down, and ESPN opted to provide content to Verizon instead.

And who could forget New Coke? Launched in 1985, it remains a major marketing misstep. After only a few weeks, Coca-Cola abandoned the product and reverted to its old formula.

Even some of the world’s most innovative companies have failed to foresee the impact of new launches on their target market. Google, for example, arguably launched its wearable Google Glass concept too soon. Its high price did not help, and it failed to connect with consumers.

Fortunately, there is a way to avoid such failures. By conducting product concept testing as part of your market research process, businesses can develop their ideas in a safe and controlled space with the target audience.

What is Concept Testing?

Concept testing involves presenting potential product concepts or ideas to a target audience and collecting feedback to assess market potential. The concept can be a new set of product ideas, a redesign, or a rebrand.

Let’s look at a product concept example. A fintech company developing a new budgeting app might present mockups or a basic prototype to test the product’s perceived usefulness, ease of use, and willingness to pay. This sample of product concept allows businesses to fine-tune messaging, pricing, or functionality.

Testing methods can be online, such as quantitative surveys or online communities focused on qualitative insights, or face-to-face, such as focus groups or in-depth interviews. This combination ensures you hear both the “what” and the “why” from your target audience.

In market research, concept testing helps avoid the trap of internal bias. It allows businesses to validate assumptions, test resonance, and measure purchase intent in a realistic, low-risk environment.

The Role of UX Designers

UX designers play a crucial role in concept testing by employing user-centered design principles. They create interactive prototypes that simulate the user experience, allowing participants to engage with and provide feedback on proposed concepts. UX designers ensure that concepts are intuitive, usable, and aligned with the target audience’s needs. They facilitate user testing sessions, observe interactions, and gather valuable insights to refine the concepts.

The Importance of Concept Testing

1. Concept Testing Helps Filter Ideas

Concept testing helps you move beyond blue-sky thinking and determine which ideas will be a hit. It provides data that can bring the whole team on board by providing consensus on which projects to develop and which to shelve.

Great concept testing unites teams behind ideas with real potential, eliminating the need for office politics or frustrating ‘design by committee.’ With concept testing, you hear directly from consumers about what will work and what won’t.

Using a range of qualitative and quantitative techniques, you can understand the consumer view of different concepts and explore whether the types of products or services you want to develop will resonate. Employing a range of testing tools enables you to identify the product concepts with the highest appeal and understand how these can be refined. This allows you to move to the next stage of development with confidence.

It’s no overstatement to say that a well-designed, concept-testing survey or a skillfully moderated online community can pave the way to success. But any survey template or discussion guide needs to be designed to ensure that the overall package, as well as individual features or attributes, are each assessed and fed back on.

This is something that needs to happen in the early stages of decision-making. It cannot be left too late, as concept testing aims to help you iterate your ideas and tweak them ahead of launch so that they are primed for success.

2. Concept Testing Prevents Bad Decision-Making

Testing concepts in detail before launch may seem like it delays your go-to-market strategy, but it saves significant time and financial losses in the long run. Failed products or services are costly, but concept testing helps you avoid bad ideas and uncover those with untapped potential.

This is especially true in financial services. Consider the launch of a new digital insurance product. If consumers don’t understand the value or find the interface confusing, the product fails before it begins. Through concept testing, businesses can refine design, copy, and pricing for greater appeal.

Concept testing helps you find the strongest option to take forward or improve underperforming concepts, ensuring your plans have a solid chance of success. In this way, concept testing can help you avoid an embarrassing failure and take your product development processes from good to great, thanks to that all-important feedback from those who matter most—your customers.

3. Concept Testing Identifies Key Elements

Even if you gauge that your product ideas will fly, there are additional considerations, such as positioning, packaging, branding, and pricing. Concept testing optimizes your innovation, reducing the risk of project failure and limiting excessive costs.

It can shed light on blind spots, inefficiencies, misinterpretations, or problems that can lead to failure. Using concept testing methods like surveys as well as qualitative research via a focus group, in-depth interview, or online community can all help to tease out your target audience’s wants or needs.

4. Concept Testing Fixes Problems Early

The sooner concept testing is undertaken, the more flexibility you have to optimize your initial idea. Concept testing helps you understand what elements don’t work, allowing you to refine ideas swiftly based on consumer feedback.

With an online community, for instance, it’s possible to develop concepts based on consumer feedback and then upload them for further feedback, allowing you to improve iteratively. This flexibility is especially useful in crowded markets, where subtle changes can shift market perception significantly.

5. Concept Testing Ensures Market Fit

Concept testing puts the consumer voice at the heart of product development, ensuring new products resonate with customers and increase business performance. It helps you identify pain points or delights relating to new ideas, establish how your product fits into the lives of your target audience, and determine which concepts they would be willing to pay for.

Good concept testing means getting under the skin of your customer and letting their feelings and needs guide you toward the solutions with the most potential. By putting consumers central to product development, you can develop products and services that outperform the competition.

Concept Testing in Financial Services: Real-World Examples

Financial services may not seem like an obvious space for product innovation, but concept testing has played a pivotal role in the development of successful offerings in fintech, banking, and insurance. When consumers are asked to trust a company with their money, market research concept testing becomes even more critical.

Monzo’s Early Concept Testing with a Waitlist Model

UK-based neobank Monzo began testing its digital banking concept by launching a beta version with limited functionality in 2015. Rather than building out the full platform, Monzo focused on a single-use case—spending via a prepaid debit card—while capturing feedback from early adopters through in-app surveys and community forums.

This deliberate form of concept testing in market research allowed Monzo to validate demand for a mobile-first banking experience before securing a full banking license. By the time of its official launch, over 200,000 users were already on the waitlist—proof that the product concept had strong market appeal.

Fidelity’s Robo-Advisory Rollout

In the US, Fidelity Investments conducted detailed concept testing before launching its robo-advisory platform, Fidelity Go. Rather than assuming that younger investors would adopt automated financial advice tools, Fidelity ran qualitative research to explore trust levels, perceived value, and platform usability.

Their findings led to changes in onboarding language, interface design, and fee structures before rollout. This research-first approach to business concept development helped Fidelity Go gain traction without cannibalizing their core advisory business.

AXA’s On-Demand Insurance Pilot

In Southeast Asia, AXA Affin piloted on-demand travel insurance that could be activated for short periods via mobile app. This product concept example was tested through user panels in Malaysia and Singapore to understand feature appeal, pricing preferences, and willingness to buy micro-coverage.

The concept testing revealed that consumers wanted automatic trip detection linked to travel bookings and simplified claims processes. These insights led to a refined offering that better aligned with digital-native expectations in the region.

FAQs About Concept Testing

What is a product concept example?

A product concept example might be a rough sketch, prototype, or idea for a new service—such as a wearable payment device or a subscription-based investment platform—presented to users for feedback before full development.

How do you test a product concept?

Product concept testing can be done through online surveys, one-on-one interviews, focus groups, or moderated online communities. These methods assess appeal, clarity, usability, and purchase intent.

What are the best methods for concept testing?

The best methods combine both qualitative and quantitative approaches. Surveys offer measurable data, while interviews and communities explore the “why” behind reactions, offering richer insight.

Why is concept testing important?

Concept testing validates your idea early, prevents costly mistakes, and helps refine features or messaging to better align with market needs. It increases your chances of product success.

What’s the difference between qualitative and quantitative testing?

Qualitative testing explores opinions, motivations, and behaviors through open-ended questions. Quantitative testing measures attitudes or preferences at scale, often using structured surveys for statistical insights.

Ready to Test Your Next Product Idea?

Concept testing gives businesses a structured and powerful way to reduce risk, prioritize investment, and bring to market ideas that align with consumer needs. If you’re looking to integrate concept testing into your product development process, our team can help you design and implement a research program that delivers actionable insight.

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Every product starts as a possibility. Whether it addresses a gap in the market, meets an unmet need, or offers a better alternative, it remains just an idea until tested. A product concept is only as strong as its reception—something no internal brainstorm can predict with certainty.

Why Concept Testing Matters

Concept testing offers a structured way to reduce that risk. Using both qualitative and quantitative research, businesses can explore which features connect with consumers and which fall short. Learn more about what concept testing involves in new product development.

Product Testing Examples That Deliver Real Insight

Product testing examples range from online surveys to in-depth interviews and digital communities. Each method captures how real people respond to a product concept before launch. These are not theoretical exercises. They show how a sample of your target market evaluates an idea, long before it reaches the shelf or app store.

Why Early Testing Shapes Stronger Product Concepts

Early feedback sharpens both product and messaging. Bringing consumers into the process before a prototype is built or campaign drafted saves time and prevents costly missteps. When the results are clear, so is the next move.

Even small features can influence how consumers perceive value. What feels minor in a meeting room can shift behavior in the real world. Testing a product concept is about more than validation—it’s about learning what matters most to the people you aim to serve.

From Product Concept to Market-Ready Idea

Behind every compelling product concept example is a period of revision. Research informs development, highlighting where the idea holds promise and where it needs work. At Kadence, we’ve helped leading brands turn early-stage concepts into successful, market-ready offers by asking the right questions at the right time.

How to Test a Product Concept Effectively

So how do you test a product concept in a way that leads to decisions, not just data? The following product testing examples show how to gather meaningful feedback early. Whether you want to compare concept variations or hear directly from a sample of your target audience, these five methods are designed to support confident, evidence-led development.

1. Use Online Surveys to Measure Concept Appeal and Identify the Strongest Ideas

Online surveys remain one of the most effective ways to test product concepts at scale. They allow brands to reach a targeted audience and gather direct feedback on which ideas resonate most. By presenting multiple versions of a product concept, businesses can quickly identify which direction holds the most potential.

Survey design is critical to getting useful results. Questions should measure perceived value, relevance, and willingness to pay. A well-structured concept test can also reveal the size of the potential market and clarify how useful the idea feels to consumers.

Just as important is who you ask. A product concept example that performs well with the wrong audience tells you little. Responses should come from people who match your target market based on demographics, geography, lifestyle, or occupation.

Likert scales are commonly used in concept testing to measure how strongly consumers value particular features. These responses can be segmented and tracked to see which product attributes matter most to different audiences.

In addition to gauging overall appeal, survey-based product testing helps identify which groups are most receptive. Differences in age, location, or behavior can point to valuable insights about where and how to launch.

2. Use Conjoint Analysis to Identify the Features That Drive Preference

While direct feedback on overall appeal is useful, it often doesn’t reveal which specific features influence consumer decisions. That’s where conjoint analysis becomes valuable. As a product testing example grounded in statistical design, it helps uncover which attributes matter most to your target market.

Conjoint analysis works by asking participants to evaluate different combinations of product features. Rather than rating each one in isolation, respondents compare trade-offs—such as price versus functionality, or design versus sustainability—and indicate which combinations they prefer. This method mirrors real-world decision-making more closely than standard surveys.

By examining how consumers prioritise features, conjoint analysis provides a clearer view of what they value and what they’re willing to sacrifice. These insights help teams separate core features from optional ones, making it easier to decide where to focus investment.

The design of the exercise matters. If too many variables are introduced, the task becomes tiring and data quality suffers. Keeping it focused ensures the results remain actionable and relevant.

Used well, conjoint analysis can turn a vague product concept into a sharply defined offer. It’s a proven way to test not just what consumers like, but why they prefer one version of a concept over another. That level of detail is essential when refining a product before launch.

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3. Use Qualitative Research to Refine Your Product Concept with the Right Audience

When it comes to understanding how your product concept will land in the real world, qualitative research remains one of the most powerful tools available. It allows brands to go beyond surface-level preferences and explore how consumers interpret, feel about, and respond to an idea in depth.

Focus groups are a foundational method. Whether conducted in person or through online communities, they provide space for guided discussions where participants can engage with product concept examples directly. These sessions often involve reviewing prototypes, visual mock-ups, or feature descriptions, and can uncover emotional responses, concerns, and points of confusion that a structured survey would miss.

Online qualitative platforms now offer even greater reach and flexibility. Participants can provide feedback on a product concept over several days, complete guided exercises, or respond to follow-up questions, all within a digital environment. These platforms are especially valuable when testing across geographies or when working with a niche audience.

In-depth interviews complement group sessions by allowing researchers to explore individual reactions in more detail. This approach is especially effective when testing complex or B2B-oriented product ideas. With more time and a tailored discussion guide, interviewers can probe deeper into feature perceptions, usability assumptions, and purchase motivations.

What unites all qualitative methods is the ability to explore why people feel the way they do. Open-ended questions are critical. Rather than asking which feature ranks highest, the focus should be on which parts of the concept feel useful, believable, or unnecessary. You might ask:

  • “What problem does this product solve for you?”
  • “Is anything missing from this concept?”
  • “How would you describe this idea to someone else?”
  • “Which features would make you more likely to buy it?”

These discussions not only inform which features to prioritise but can also shape messaging, naming, packaging, and positioning. They provide the language your customers naturally use when talking about your offer—language that should carry through into marketing and UX design.

A well-run qualitative study will also help you define your product’s edge. It can highlight gaps in the market or reveal objections that need to be addressed early. In this way, qualitative research becomes a testing ground for product-market fit, well before development costs escalate.

4. Use Iterative Testing to Evolve the Concept Before Launch

Testing once isn’t enough. The most successful product concepts are shaped through a series of refinements based on real feedback. Agile, iterative testing gives brands the flexibility to improve their ideas in response to what consumers actually say and do.

Online communities are particularly well suited for this approach. These platforms allow participants to engage with your product concept at different stages—reacting to early visuals, responding to copy, reviewing revised prototypes, and offering feedback in cycles. This makes it possible to test, adapt, and retest ideas with the same or new groups of users.

For example, participants might be shown an initial product description and asked to highlight what excites or confuses them. After revisions, a new version is shared to see whether the updates improved clarity or appeal. Image markups, video feedback, and comment threads can all be analysed to understand where the concept is gaining traction and where friction remains.

This method mirrors real product development, where adjustments are constant. It also reveals how perceptions shift over time—whether the concept grows stronger with refinement or if interest fades with repeated exposure.

Even after launch, this kind of feedback loop remains valuable. Early users often uncover pain points or opportunities that weren’t obvious during the testing phase. Continual input from your target market helps fine-tune features, improve communication, and drive post-launch iteration.

Iterative testing turns product development into a dialogue, not a one-off pitch. It reduces guesswork and keeps you aligned with your audience at every step.

5. Bring Product Concepts to Life with Visual and Emerging Technology

Product testing examples that include visual stimuli consistently perform better. To get meaningful feedback, respondents need to see and understand what you’re proposing. That’s why it’s essential to translate early ideas into clear, engaging formats before testing.

Mock-ups, 3D renders, packaging designs, and video walk-throughs all help communicate the product concept clearly. They offer a sample of the product experience, allowing respondents to imagine how they would use it, where it fits in their life, and whether it feels relevant. The clearer the picture, the more reliable the insights.

We also see increasing value in immersive testing methods. Augmented reality (AR), for example, allows consumers to interact with a product prototype in a real-world setting using their phones. A digital appliance can be visualised on a kitchen counter. A piece of furniture can be placed in a home office. This adds context to feedback and improves the quality of the response.

Using these tools doesn’t just improve recall—it helps brands uncover deeper emotional responses. Seeing a product in context often sparks reactions that written descriptions never would. That’s why visualisation should be considered a core part of concept testing, not an afterthought.

Frequently Asked Questions

What is a product concept example?

A product concept example is a clear, written or visual description of a product idea designed to solve a specific need. It outlines what the product is, who it is for, and what makes it valuable or different. For instance, a biodegradable laundry detergent strip designed for travel that eliminates plastic waste and performs in cold water is a strong example of a product concept.

How do you test a product concept?

To test a product concept, researchers typically use a mix of qualitative and quantitative methods. These can include surveys to measure appeal, focus groups to explore perceptions, conjoint analysis to determine feature preferences, and online communities to refine ideas iteratively. Testing aims to validate the concept’s potential with a sample of your target audience before full development begins.

What are the best methods for concept testing?

The most effective concept testing methods depend on the stage and complexity of your idea. Common product testing examples include:

  • Online surveys to compare concept appeal
  • Conjoint analysis to evaluate feature trade-offs
  • Focus groups for in-depth qualitative feedback
  • Online communities for iterative testing
  • Augmented reality or mock-ups to test concepts in context

Combining these methods gives a more complete picture of how your idea is likely to perform.

Why is concept testing important?

Concept testing reduces the risk of failure by identifying which ideas resonate with your target market before you invest in production or marketing. It helps refine features, messaging, and positioning by putting real consumer feedback at the centre of product development. Strong testing can also guide pricing, uncover unmet needs, and improve go-to-market strategy.

What’s the difference between qualitative and quantitative testing?

Quantitative testing uses structured surveys and data to measure how consumers rate a product concept. It helps identify preferences and trends across large sample sizes. Qualitative testing, on the other hand, involves open-ended feedback through interviews or discussions. It reveals why consumers feel a certain way and often uncovers insights that drive innovation. Both methods play a critical role in developing a concept that aligns with your audience.

From Idea to Impact—How to Test Product Concepts That Win

A strong product concept starts with a clear idea. But success comes from refining that idea through real-world feedback. Whether you’re testing early-stage features or final prototypes, the examples outlined here—surveys, conjoint analysis, qualitative research, iterative testing, and visualisation—offer structured ways to learn what matters most to your target market.

The difference between a great concept and a great product lies in what you do before launch. By testing your ideas with real consumers, you reduce risk, sharpen your offer, and increase your chances of delivering something that truly connects.

Looking for support to test your next product concept? Explore our new product development research services or request a tailored proposal. Let’s turn insight into impact.

So you have a number of exciting concept ideas but you’re not sure which to take into further development? This is where conducting online concept testing comes in.

Online concept testing is the process of evaluating product ideas with consumers prior to their introduction to the market. It can include both quantitative and qualitative research, via surveys and online communities, for instance.

It’s a great way to bring consumer insights to the heart of the new product development process. These insights can help you understand which products or services will be a hit with your target audience. In this way, a concept test can dramatically reduce the risk of a product failing when it hits the market, helping to ensure a successful product launch.

Online concept testing can also point to areas of your concept that need tweaking, or new features which could be added. It can also help you answer questions such as whether the price is right and how where your idea fits in relation to competitor offerings and the perception of your brand as a whole.

But there is no one-size-fits-all approach, rather a range of methods that can be combined and tailored to meet the demands of each project. 

What online approaches can you use for concept testing?

You can take either a quantitative or qualitative approach to concept testing – or combine both. 

The main quantitative technique is an online concept test survey. Through online surveys, you can reach thousands of targeted and engaged respondents, providing rich and robust data that can be analyzed. In the survey, the concept test would involve consumers reviewing a text description or a visual representation of the concept. Then, the audience would be prompted to answer questions or to discuss their impressions of your idea. 

Single-concepts can be tested through monadic survey design, whilst multiple concepts can be evaluated using sequential design (read more about this in our post on what concept testing is and why it’s important). Once we have ascertained the level of interest or purchase intent data for each concept, these can be plotted on a chart to show which spurred the most promising response. We can also unpick the relative effect of different attributes such as price or features, with the help of a well-designed survey template, advanced statistical techniques. 

When it comes to qualitative techniques, you can either run an online community – a carefully curated space to engage respondents in a group setting, as well as one to one tasks – or run a series of in depth interviews over video chat, in which you have the ability to share concepts on the screen.

What’s the advantage of online?

Online surveys enable you to reach a representative sample to gather robust data quickly and efficiently. 

Online qualitative approaches, like online communities can deliver more detailed feedback than you might get in person. The sheer quantity of comments in an online community is vast – providing a real depth of insight. 

An added benefit of qualitative online testing methods is that they can enable you to test ideas in multiple markets at the same time, so you can identify and explore common themes, rather than having to run focus groups over a number of weeks to get feedback in each market.

Online concept testing best practice

Objectives first, methodology second

Try to avoid embarking on the research with a set methodology in mind. Instead take a step back and think about your objectives and where you are in the product development process. This will help you choose the right approach. 

Ask yourself whether you require high-level responses to multiple concepts, or detailed feedback on one, in particular? Do you need qualitative inspiration or quantitative rankings?

Also think about how far along the development process you are. If you have a prototype of your concept that respondents can interact with it may be that an offline approach like a focus group could be more appropriate, whereas if your concepts are at an earlier stage, an online approach could be more valuable.

We tend to use a combination of testing methods to build up a picture of how products or services could fit into the lives of those you hope will use them – and we’ll tailor the methods based on the project. Often, we’ll work with clients to quantitatively test initial concepts to understand those with most appeal to the target market. This is often followed by an online community in which consumers help you hone your ideas further.

That said, it’s always critical to build a tailored approach depending on what you’re trying to achieve and who you’re trying to reach. For instance, if you’re looking to get feedback on new concepts from hard-to-reach, or B2B audiences, a digital in-depth interview could be appropriate.

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Choose the right tools

Many online community platforms are specifically built with concept testing in mind and have tools that allow respondents to mark up elements of a concept that they like or dislike, along with a justification. 

But always ensure the agency you work with has the right security protocols in place to protect early stage ideas. The platforms we use include a number of built-in security features. Images can be watermarked with a unique respondent identifier and, if you’re testing ads, we can set videos to self-destruct after they’ve been watched once. On top of this, we use all the confidentiality procedures we would for concept testing in-person. With such stringent processes in place, we’ve never experienced a leak. With us, your ideas are in safe hands.

Moderation, moderation, moderation

When you’re testing concepts in an online community, it’s important that conversation is carefully guided just as it would be in an offline focus group. Skilled market researchers know how to curate the conversation in an online setting, finding links between people and encouraging them to open up and feedback comprehensively on ideas.

Through a combination of effective moderation, probing and carefully structured analysis, we can identify the overall themes and elicit the information you need to move forwards in the product development process.

Bring ideas to life for consumers

To get the most out of respondents, it’s also important that you bring concepts to life by creating stimuli that enable the target market to picture your proposed products or services. Often, the early-stage concepts we receive from clients are only roughly sketched out. 

It might be a selection of words on a Post-It note, or a collage of images found online. We work with our in-house designers and copywriters to build on this, fleshing out concepts and designing mock-ups and prototypes to make sure that your initial ideas can be easily understood by consumers. After all, it’s much easier to feed back on an idea you can properly visualize.

We use prototypes to bring ideas to life for consumers in face-to-face focus groups but one of the benefits of qualitative online concept testing methods, like online communities, is that these mockups can be amended based on consumer feedback and then fed back into an online community for further comment. This allows us to iteratively improve the concepts over time to build on and strengthen initial ideas.  

At Kadence, we’re taking this principle a step further by exploring how we can use augmented reality (AR) to further bring concepts to life, thereby eliciting higher quality insights. Through AR we can create 3D digital prototypes that consumers can place in real environments using their phone – in their home, in a supermarket, wherever they happen to be. Not only do immersive methods like this deliver richer, higher quality insights, but they allow you to test concepts in context, thereby overcoming some of the challenges of face-to-face approaches.

Finally, it might sound obvious but it’s also important to ensure that your concepts are ready to be tested. It’s better to delay an online focus group if your concept is not yet fully developed, nor its purpose clear. If your ideas are easily understandable, can be brought to life and readily understood, your participants will be able to provide more comprehensive feedback.

Rigorous research shows you whether you’re really on to something. It puts everyone’s ideas on a level playing field and can help companies navigate internal politics to find a path ahead. After all, it’s your customers who will decide which idea is a success.

In this way, market research can dramatically increase the chances of developing a product concept successfully. Ultimately, testing is the process that enables you to proceed with confidence, and what can be better than that? We’d love to support your organization with concept testing research. To discuss the best way to test your new ideas – be that online or offline –  please request a proposal. 

What is a Central Location Test (CLT)?

Central Location Testing (CLT) is a market research method where participants are invited to a specific location to evaluate products, services, or concepts. This controlled environment allows researchers to gather in-depth insights into consumer preferences and behaviors.

Why Use Central Location Testing?

Central Location Testing is valuable for several reasons:

  • Controlled Environment: Ensures consistency and reliability in testing conditions.
  • Immediate Feedback: Provides real-time insights from participants.
  • Complex Testing Scenarios: Ideal for detailed observation or interaction, such as taste tests and usability studies.

How Does Central Location Testing Work?

Recruitment

Participants are carefully selected based on specific criteria to represent the target audience.

Venue Selection

Choosing an accessible, comfortable, and well-equipped venue is crucial. Examples include conference rooms, shopping malls, or specialized research facilities.

Test Design

Tests are designed to gather specific data points, such as preferences and behaviors, using methods like surveys, focus groups, or observational studies.

Data Collection

Researchers use questionnaires, interviews, and direct observation to collect data.

Analysis

Collected data is analyzed to identify trends and insights that inform business decisions.

Types of Central Location Testing

There are several types of Central Location Testing, each suited to different research needs:

  • Product Testing: Evaluates physical products for taste, texture, appearance, and usability.
  • Concept Testing: Assesses consumer responses to new ideas, advertising campaigns, or product concepts.
  • Usability Testing: Focuses on the ease of use and functionality of products, websites, or software.
  • Sensory Testing: Used in the food and beverage industry to assess taste, smell, and texture.

Benefits of Central Location Testing

  • Detailed Insights: Provides in-depth understanding of consumer preferences and perceptions.
  • Improved Accuracy: Ensures consistent and reliable results in a controlled environment.
  • Cost-Effective: Centralizes the testing process, often reducing costs.
  • Flexibility: Suitable for a wide range of products and testing scenarios.
  • High Engagement: Participants are more focused and engaged.

Best Venues for Central Location Testing

Selecting the right venue is critical:

  • Accessibility: Ensure the location is easily accessible.
  • Comfort: A comfortable environment leads to more accurate feedback.
  • Facilities: The venue should have necessary facilities like seating, lighting, and audio-visual equipment.

How to Conduct a Successful Central Location Test

  1. Define Objectives: Clearly outline the goals of the test.
  2. Select Participants: Choose a representative sample of your target audience.
  3. Choose the Venue: Select a location that meets your test requirements.
  4. Design the Test: Develop a detailed test plan.
  5. Conduct the Test: Execute the test consistently.
  6. Analyze the Data: Extract meaningful insights from the data.
  7. Take Action: Use the insights to make informed business decisions.

Central Location Testing is a powerful tool in market research, providing valuable insights into consumer preferences and behaviors. By conducting tests in a controlled environment, researchers gather accurate and reliable data to inform product development, marketing strategies, and business decisions. Whether testing a new product, evaluating a concept, or conducting a usability study, CLT can help you gain the insights needed to succeed.
To find out how Kadence can help you leverage Central Location Testing for your business, reach out to request a proposal.
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We’ve been working with Bloomberg to understand the priorities, actions and attitudes of business decision makers across APAC as the pandemic progresses. In the second of five waves, we explore attitudes towards travel, media consumption patterns and brands.

Take a look at the infographic for the key insights including:

  • 7 in 10 decision makers say their companies are restricting travel, up by 18% from the last wave in May
  • In 1 in 4 organizations, employees are given the flexibility to work from home.
  • 57% are looking for brands that are customer-focused and are flexible enough to accommodate their rapidly changing needs

How should you position your advertising as consumers emerge from lockdown with new expectations of brands and a different lens on marketing?

Discover the key learnings from our proprietary study, Brands Exposed, with over 4,000 consumers across the UK, US and 8 Asian markets by watching the webinar below.

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The economic impact of the COVID-19 pandemic in various markets has been undeniable. Some sectors like travel and hospitality have been hard-hit, while physical retail has suffered badly too due to social distancing and lockdown measures. Workers in these industries are affected as well, with their livelihoods threatened by uncertainty and instability. Within this context, money worries are certainly in the minds of many, as they struggle to make ends meet.

Even amongst the fortunate who still have their jobs, it is likely that they would have been impacted as well, albeit at a different level. Without having to worry about the ‘now’, they would be thinking about the ‘next’ and the ‘near future’. Economic downturns are not new, but one caused by a global virus outbreak is a little harder to manage and predict. As such, the more financially-minded consumer will have to start to think about what their investment portfolios should really comprise, how they can be economically-sheltered from the next disaster, and what kinds of financial planning will allow them to not just weather the storm, but also thrive in the long run.  

So what should retail banks, financial institutions and fintech entities prioritize, as the pandemic improves? What role do these organizations need to play in their customers’ lives, and on what kinds of principles do their strategies need to be based? We explore 3 key areas: consumer spending patterns, investing and cash, sharing our thoughts by examining what is likely to change in the post-COVID world, and what will remain the same.

Consumer Spending Patterns: Between Saving and Spending

Short term changes

Within Asia, two markets that recently relaxed their lockdown situations were China and South Korea. In both cases, there were instances of what is now an increasing familiar term in post-COVID coverage: ‘revenge spending’. The Hermes flagship store in Guangzhou saw its biggest single-day earning ever, when millions of Yuan were spent by previously cooped-up shoppers on luxury items. While in Thailand, which recently lifted the ban on alcohol sales at retail level, saw unprecedented levels of consumers binge-buying wines, beers, and spirits.

Regardless of the market and product category, one thing is common: perceived scarcity will motivate consumers to spend disproportionately in the short term. This also illustrates how the fundamental principles of behavioral economics and the multitude states of cognitive biases (too many to name here) are once again proven true.

Long term trends

In the longer term though, what are we to make of consumer spending and saving mindsets, in turn motivating actions/behaviors, which will be meaningful for financial entities to action on?

We see two likely scenarios, each combining a certain degree of emotional and rational assessment of how individuals see their ‘now’ and ‘(near) future’:

  1. Excessive fear and over-reaction to the economic fall-out of the pandemic and feeling the extreme need to be more assured/confident of their financial states, leading to reduced spending/motivation to seek out additional/side income
  2. Resignation and coming-to-terms with their helplessness when it comes to managing their finances (i.e. surrendering to the insurmountable force of macroeconomic changes), and maintaining the status quo, feeling good about creating/maintaining their sense of ‘normal’

There will certainly be many shades between these two extremes, just as there will also be minorities falling outside of these as well (e.g. increased spending/acquiring material goods to achieve the sense of security), but what’s certain is that financial institutes will have to play the role of showing the path to fruitful savings and meaningful spending, without leaning too far into one side or the other. An established bank that has a reputation for best-in-class credit cards in consumers’ minds may take the opportunity to come up with a savings product that validates a consumer’s side hustle, while a fintech that’s trying to break into the travel space may have to use this chance to re-think what their value-proposition really is to consumers who have to temporarily shelve their wanderlust.

Underlying all these, of course, is the presumption that the entity has a ‘trust bank’ upon which to draw notions of credibility and capability; all the money in the world thrown behind a huge messaging campaign in the post-COVID world will not help, if that trust was not already there in the consumers’ pre-COVID reality. 

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Investing: Between Risks and Returns

Short term changes

In the pre-COVID days, any sort of consumer research on investment products/journeys/choice and preference of investment instruments, often boils down to 3 main points:

  • How clearly the product information is introduced, and how much of its mechanism is understood
  • How well the investor can conceptualize the product for himself/herself, and how he/she imagines it within his/her portfolio
  • How he/she feels about it on the overall level

This combination of rational considerations and emotional reassurances will likely not change dramatically in the ‘new normal’, but there is the need to acknowledge the likelihood of investors perceiving the market to be more VUCA (i.e. volatile, uncertain, complex, ambiguous), thus leading them to re-assess whether it’s the ‘right time’ to be investing in the first place.

Based on past economic downturns, alternative investment instruments (e.g. art, whisky, coveted luxury brand handbags, etc.) have also started to become more commonplace and offer investors another way to grow their money. However, the mechanisms of such tools are often not clear, and usually complement a portfolio that’s still predominantly stocks/shares driven. Insurance-based products are also believed to be a likely winner in the world of money management; as consumers become more risk-averse, bonds and capital-guaranteed products are logically seen to be aligned with immediate appetites.

Long term trends

All that said, though, it is still necessary to highlight that very few investors carry out investments purely motivated by fear of losing; the savvy ones are aware of the notion of calculated risks, and the really experienced ones within that small bunch of savvy investors also know that ultimately the global market is very much sentiment-driven (read: emotions, cue behavioral economic principles again). This highlights the importance of ‘confidence’ and decision-making based on knowing all the ‘facts’ available at a specific point in time, which is actually the fundamental strategy applied by many governments around the world which have successfully contained the pandemic in their respective countries.

Therefore, in the post-COVID world, we feel retail entities that will do well with investors are those that understand how to pull the ‘clarity’ lever, showing their workings around how they feel a product/tool will help the investor achieve their wealth goals, while acknowledging the presence of VUCA factors and understanding what kinds of emotions can arise from investing in a global economy that’s still ‘finding its feet’.

Consumer perceptions of cash: is it still “king’?

Short term changes

Even before the onset of the pandemic, it is becoming increasingly clear that many markets globally are moving towards implementing cashless systems, or at least encouraging consumers to rely less on cash. Though not all executions were done well (e.g. India’s sudden and forceful removal of certain currencies from the market create a financial nightmare amongst consumers which took many months of correcting), the movement is at least gaining momentum, and acceptance appears to be higher in markets which are traditionally cash-focused

Covid-19 containment measures have basically forced upon various societies the need to pay for items in a cashless way; the removal of physical retail to adhere to safe distancing measures meant that opportunities to use physical cash have reduced dramatically, while paying for online purchases tends to be electronic in nearly all cases (save for cash-on-delivery options). Not having to handle cash within current context also means reduced chances of infection through virus transference on surfaces, so it appears to have multiple advantages that’s aligned with the ‘sign of the times’

What this means, though, is while the transition is quite smooth for the cashless consumer, the cash-minded one will likely have to think about how that impacts other parts of their financial realities. Money management and tracking, for one, will likely need to take new forms if cash spending is slowly being phased out from their daily lives. Another area which will likely see some change is in digital payment security: with increased volumes of payment, it will be naïve to assume that similar online safety mechanisms will suffice. To prevent any backlash that can potentially happen due to insecure cashless payment systems, it is an area within the financial industry that needs immediate attention, such that consumer confidence in the system may be sustained

Long term trends

However, we must not confuse “accelerated pace of change” with consumers loving the new ‘state of play’ for cashless; we are of the opinion that consumer sentiments towards the ‘meaning’ of cash (e.g. freedom/fluidity, security, options, empowerment, tangibility, etc.) may in fact deepen in the post-pandemic world, due to perceived uncertainties and insecurities (as we have mentioned above). What this then means is that the notion of ‘cashless’ may either need to be strengthened such that it goes beyond attributes like ‘convenience’ and ‘ease’, or relegated to specific consumption scenarios that may not need to be as ‘meaningful’ as cash 

This has important implications for the numerous fintech institutions globally that are trying to ride on the wave of new financial attitudes in the ‘new normal’; whatever solutions they’re proposing (e.g. payments, investments, money management, etc.) will likely be based on a cashless model, so on top of proving the validity of their use cases, the fundamental value that going cashless needs to be just as apparent. Only then can it achieve both resonance and acceptance amongst consumers, as they navigate their financial world and arrive at their own conclusions on what they will relegate to the cash ‘world’, and what they will gladly make ‘cashless’.

As opportunities for face-to-face research become more limited in the current climate, online research is coming to the fore. To help our clients navigate this shift, we ran an Ask Us Anything session to give clients a chance to ask their questions on getting the most out of online research. Almost 200 of you joined us, but for those that missed the session, we’re sharing the top 10 questions asked in the session, along with our expert advice.

1. Should I be doing research during the COVID-19 crisis?

As a result of the current crisis, we are seeing dramatic shifts in behaviors and attitudes. There’s a tendency to think that this will soon pass and that life will return to “normal”, but the reality is that consumers are going to be adjusting to a new normal. As insight professionals it’s our job to understand the changes we’re seeing so we can advise our clients on how to react accordingly. Arguably, research is now more important than ever before.

What’s more, in some ways, the lockdown situation will actually allow us to delve even deeper into the consumer psyche to understand emotions. One of the age-old techniques we use in qualitative research is the deprivation question, where we ask people to imagine what they would do if a product or service wasn’t available to them anymore. The truth is that this is now a reality for many consumers, and as a result, they’re able to consider and eloquently discuss the role products and services play in their lives in much more detail than before. Added to this, many B2C and B2B respondents now have more time on their hands, meaning that recruitment is actually easier, and we’re seeing greater engagement in the research itself.

2. How do we ensure that current emotions due to the COVID-19 crisis do not affect the way consumers answer?

We can’t ignore the crisis and the impact it’s having on consumers and businesses alike.  As a result of what’s happening, people are re-evaluating what’s important to them and the relationship they have with brands. Their expectation of brands and the role they should play is changing. A classic example of this are the many brands like Brewdog and LVMH that have ramped up their processing lines to produce hand sanitizer for health services. As brands pivot and change their approaches, consumers are naturally going to change their views of those brands. It’s vital to be able to tap into these emotions to understand the expectations that consumers have of brands now and in the future.

3. I usually do focus groups. What should I do now?

Instead of thinking about the methodology you had initially planned to use and how you might replicate this online, take a step back. Return to your project objectives and what you’re trying to achieve.

We see too many clients trying to find a like-for-like replacement when they’re considering online methodologies. If they’re used to running focus groups, some automatically default to an online focus group, but in reality, it could be that another methodology is better suited to their project objectives.

We use two frameworks to help clients think about moving their projects online. The first is to consider the depth of insight you need to obtain. If you’re looking for high level responses to concepts it could be that an online focus group will suffice, but if you really want to drill into who your consumers are and how they engage with your product, digital depths or ethnos could be more suitable.

We also encourage clients to think about what they’re looking for from their respondents. Do you  want to engage respondents on a one-off or on-going basis? Do you want your respondents to bounce ideas off one another, or is a one-to-one setting more appropriate?

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These simple questions can be really useful in helping you think about the right methodology, but remember, one size doesn’t fit all. It is likely that you’ll want to use a combination of methodologies to achieve your objectives.  

4. My budgets are being cut. How do I ensure that I get the most out of my investment in online research?

An online approach is incredibly asset-rich. It will give you a host of video, image and text-based content, sometimes giving you more bang for your buck than some offline methodologies.  But to get the most out of your investment you need to think about two key things: moderation and analysis.

For online communities in particular, this is crucial not only to curate the conversation but to help you unearth those nuggets of insight. By moderating and analyzing what’s coming out of the community on an ongoing basis, you’re able to dig into areas of interest that emerge during the course of the research and ask new questions as you go to help answer your objectives. This ensures you leave no path unexplored throughout your research.

At the same time, with such an enormous amount of information coming out of online methodologies, you need structure in your analysis to ensure you can build your insights appropriately. We have a range of tools we use in-house to help structure our analysis and thinking, focused on delivering the ‘so what’ to our clients and their stakeholders.

5. How can I balance a tight budget with the need to conduct qualitative research that is more representative of the market?

In this instance we’d recommend an online community approach. If you opt for a less complex and therefore more cost-effective platform, you can invest your budget in a larger, more representative sample. Keep tasks at a high level to ensure the analysis is manageable and consider using polling questions to give you broad-based findings at a quantitative level (sample sizes permitting!)

The one challenge that can come with increasing the size of your community is in being able to build rapport with and amongst respondents. To overcome this think about grouping people so that they can discuss topics in smaller groups within the community (e.g. customers vs. non-customers).

6. What are your top tips for moderating an online focus group?

Firstly, make sure you choose the right platform for your project. There are a range of platforms out there and they all have different functionalities that are suited to different business objectives. Depending on your market, you may choose to go with a text-based approach rather than video, if internet connections are slow.

Whichever one you choose, make sure it’s one that will allow you to see all the respondents’ faces on screen at one time, so that you can read facial cues. To help with this, keep your groups small – we’d recommend a maximum of 6 – 8 respondents.

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Don’t forget that you can use pre-tasks and warm up activities to better understand your respondents and build rapport. Make sure your moderator does their homework upfront, reviewing the screener and learning as much about each respondent before the session begins. Once you’ve done this the medium will soon become secondary as respondents relax into the group. Keep tasks varied within the discussion guide to keep everyone engaged, and finally, as with offline focus groups, the moderator’s energy is crucial, so choose wisely!

7. How can I use online methodologies for concept testing? How does this work with highly confidential concepts?

Online methodologies are a great tool for concept testing – and arguably can provide an even greater depth of insight to inform product development.

Online communities in particular are a great tool for this. Many platforms are specifically built with concept testing in mind and have tools that allow respondents to mark up elements of a concept that they like or dislike, along with a justification. The responses you get here can be even more detailed than in a face-to-face group.

Communities also allow us to iteratively improve the concepts over time. We can rapidly adapt concepts based on consumer feedback and put them back into the community for further comment, allowing us to build and refine the concepts as the research progresses.

The community platforms we use also have in-built features for dealing with highly confidential concepts. Images can be watermarked with a unique respondent identifier and if you’re testing ads, we can set videos to self-destruct after they’ve been watched once. On top of this, we use all the confidentiality procedures we would for concept testing in-person. With such stringent processes in place, we’ve never seen a leak in over a decade of running this kind of research. 

8. Is there a risk of “groupthink” when you bring people together for online research in groups?

There’s a common misconception that online communities only allow you to discuss things as a group. In actual fact, that isn’t the case. There are options to ask questions or set tasks that are completed privately, meaning that respondents aren’t influenced by others in the community.

9. Do online approaches work in Asia?

Absolutely.  The key thing is to find a partner who understands the cultural and digital footprint of the market you’re researching, so that they can advise you on the best methodology to use, based on the respondents you’re wanting to reach.

Digital footprints and internet connectivity does vary from market to market, and within different regions of the same country, but it’s hard to deny the increasing impact of digital and mobile technology across Asia. In The Philippines, the social media capital of the world, video-based tasks could be a great way of conducting research, whereas in China, familiarity with the digital way of engagement – from online communities to Wechat groups – presents an opportunity to engage and reach out to your consumers where they already are. And even in more rural areas you can explore potential probable solutions, such as text-based solutions to communicate with those you want to reach.

The key is to decide whether digital research is the right solution for your research is to understand from your research partner the digital feasibility, connectivity and savviness of your target segments and locations. 

10. I’m wary that with online mythologies I’m too far removed from respondents. I can’t see “the white of the eyes”. How do I overcome this?

We’d argue that online methodologies can actually help you get closer to consumers than you might in some face-to face approaches like focus groups. Particularly when we’re running an online community, we’re engaging with consumers over a number of days or weeks (rather than a few hours)  and in this time we can really build rapport and trust. This results in consumers opening up to us, helped by the ease of talking about their experiences to camera. Often consumers are actually more willing to open up at a personal level when talking to their camera phone than to a person that they’ve only just met!

In fact, we’ve just run a community in the US, looking at how consumers are coping in the pandemic, and we found people pouring their hearts out to us via selfie interviews. This helped us to really understand the issues that matter to them, and the context of those emotions.

If you’ve like to learn more about how online research can help you meet your objectives, please get in touch with your local Kadence office.