Before they reach the target market, products or services always start off as unproven ideas. But in order to avoid costly failures, businesses need to understand whether or not they’ll be a hit with consumers.

Concept testing is the process of using qualitative or quantitative research in order to test your ideas ahead of launch. It enables you to ascertain which features are likely to be popular with the target audience, and which may need changing. 

Key methodologies and testing methods can include in-depth interviews, online communities and the use of a testing survey to gather feedback on your potential product.

Paving the way to success

Testing product ideas with your target audience enables you to optimise your approach before introducing products to the market, helping you to get features right from the earliest stage and to dramatically boost your chances of success, by asking potential customers what they think. It can also prevent costly failures so an investment in effective concept testing is a worthwhile investment.

After all, seemingly minor product features can have a fundamental effect. In this way, market research enables you to find out what potential customers care about in order to determine which attributes should be incorporated into the final design, ahead of the official product launch.

Product and concept development

Behind almost every successful product is a careful research and development phase – and we’ve worked with some of the biggest brands to take their big ideas, and turn them into products consumers love.

But how do you test a product concept effectively?

Here are five examples of how to test concepts for any potential product.

1. Run an online survey to test overall concept appeal and to narrow down your options

A concept test survey can be a powerful tool. A testing survey can reach large audiences of carefully targeted consumers, providing rich data to be analysed. It is possible to test a number of concepts, in order to understand their appeal and to help you decide which concepts to take forward for further testing.

Product developers know that the use of effective survey questions is a proven way of generating relevant information on which to base future decisions. Questionnaires are typically used for obtaining valuable data. For example, to ascertain how many potential customers there are, whether they would find such a product or service useful, and the sort of price they would be willing to pay. 

The key is to ask the right people the right questions, and to ask enough people to get meaningful results. Often a likert scale is used; a type of scale used to rate various features or attributes, in the eyes of end users. Do bear in mind, too, that you need to approach a significant sample of people who match the profile of your target audience when sending out questionnaires.

Effective concept testing can also give you relevant information and clear pointers as to which demographic groups, geographies or market segments will get as excited about your idea as you are.

2. Employ conjoint analysis to understand which features really matter to consumers

As well as asking potential customers which concept they prefer, you can use techniques like conjoint analysis to gauge which product features are most important. This is a technique which involves presenting people with a series of attributes and asking them to rank them in order of appeal.

Conjoint analysis is regarded as an effective way of gaining detailed insights. Essentially, it’s a way of measuring the value that customers place on a product’s specific features. It typically works via a survey, in which participants are shown a combination of attributes and asked to compare or rank them. It can help to measure and understand customer preferences for particular features, to generate actionable insights to guide the development of the product.

Whilst the process involves offering respondents a range of choices. It’s important, however, not to overload respondents so that they remain fully engaged with the process.


This approach can help you identify the features that matter to consumers. Use this to categorise features into ‘need-to-have’ versus ‘nice-to-have’. Consider which features and functionality your product really needs in order to be compelling to the target market to prioritise your investment.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

3. Use qualitative methodologies to hone your ideas along with the target audience

Group discussions are a tried and tested way of getting rich qualitative input. We can bring groups of potential customers together – face-to-face in a focus group or in an online community – and conduct a carefully guided discussion, often with prototypes or other stimuli to spark conversation. This allows us to drill down into the product features that consumers really want or need. Qualitative research can also reveal unmet needs, inspiring further development and ensuring your product or service has an edge over the competition.  

 
In some cases, qualitative feedback can be gained by conducting one-on-one in-depth interviews. This is particularly useful if you have a detailed or complicated concept that’s targeted at a niche B2B audience.

It’s important to use open-ended questions to gather insights: Ask respondents what they like and dislike and give them the space to explain their views. This provides the opportunity to get objective feedback from your target audience without restrictions or bias, and to obtain detailed and actionable feedback. 


Questions can include, for instance, ‘How appealing are following the features?’ or ‘Which of the following attributes are most important to you?’ or ‘How well do these statements describe the product?’ 


Choosing the right questions, moderating the discussion, probing at the right intervals and keeping respondents engaged is key to successful product concept testing. With so many products failing, testing your concept early is also vital. By testing product concepts thoroughly and early, you’ll know which concepts are likely to drive revenue before you have invested too much time and effort in development.

4. Embrace an agile and iterative testing approach

Another way to test product concepts is to develop an agile and iterative testing approach. Online methodologies like online communities lend themselves well to this, as it’s possible to test concepts, gain feedback, adapt the concepts based upon this and then retest them with consumers.

An online community is an online research platform where consumers are brought together to take part in a series of tasks. The discussion is curated by our team of researchers in order to gain in-depth feedback which will enable effective concept iteration.

The online community platforms we use have built-in features for concept testing. For example it’s possible to mark up images to highlight which aspects you like or dislike, adding detailed commentary. The results of this exercise can be analysed and the concept iterated accordingly, with the new and improved idea put back into the community for further feedback and testing. The result? By harnessing feedback loops to refine and retest, you’re able to develop the strongest concept possible. 

Even after your product has launched, there’s real value in continuing to gain feedback. Once your product is in consumers’ hands, there’s more to learn about the role it plays in people’s lives, and any unforeseen pain points that  could require further changes to address. Be ready to test your product concept to ensure it gets better and better. By honing and refining your product features you can continue to stay ahead of the competition. So always refine and iterate. Successful product innovation is never finished. The beauty of product concept testing is that you have the luxury of being able to respond to feedback until you hit on the optimum prototype. 

5. Harness new technology to bring ideas to life for consumers 

To get the most out of respondents during a piece of concept testing research, it’s important that you bring concepts to life by creating stimuli that enables the target market to picture your proposed products or services. With our own design team in house we can take your initial ideas and turn them into beautiful mock ups that ensure the core idea is clear.

To take this a step further, we are currently exploring how we can use augmented reality (AR) to really bring concepts to life, thereby eliciting higher quality insights. Through AR we can create 3D digital prototypes that consumer can place in real environments using their phone. Not only do immersive methods like this deliver richer insights, but they also allow you to test ideas in context.

Get under the skin of your potential customers in this way and let their feelings and needs guide you towards the solutions with the most potential. The results will speak for themselves.

To find out more, please visit our concept testing services page or request a proposal from our team. 

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 analysed. 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.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

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 visualise.

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 organisation 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?

Essentially, it’s a way of carrying out product market research that’s done in a controlled environment, not in the participant’s home.

In this way, it differs from methods like online surveys or online communities. Sometimes, central location tests are referred to as “hall tests”.

The main reason to use these tests is to be able to test physical products in a face-to-face setting, exercising more control of the testing process. By being in the room with the participants, it’s easier to control for bias, engage more with the process, and ideally gain accurate and useful results.

In this article, we’ll dive a little deeper into the reasons for carrying out central location tests, the different types available, and share best practice tips for conducting this type of research. Let’s get started.

Why Conduct A Central Location Test?

Here are some of the most common reasons for conducting a central location test for your products:

  • It helps minimize bias. In a central location test, everyone is monitored together in the same space. It’s easy to eliminate outside influences, present questions in the same order to avoid confusion and ensure participants answer logically.
  • You can observe body language and other types of indirect feedback. This isn’t always possible online, but it can be very useful when making decisions. Participants might also say things or raise questions that they wouldn’t have the chance to do otherwise, which can lead to a more detailed understanding of their opinion.
  • You can test things like taste, smell, and touch, which typically isn’t always possible if the test is conducted at home, without the logistical challenge of sending products to each respondent.
  • It’s convenient. Testing large numbers of people in the same place at the same time helps save time and resources.
  • You can ask follow-up questions and tailor interactions with participants in real-time based on their responses. This allows you to go further to capture additional information than might be possible with other testing methods.

The Different Types of Central Location Tests

There are a number of different ways to carry out your central location tests. Here are the main models:

  • Monadic. This is where everyone focuses on the same product. The goal is simple: assess how well it would work if taken to market.
  • Paired comparison. Here, participants compare two products and choose which one they think is best.
  • Sequential monadic. First, participants assess one product, as in the monadic model. Then, they move on to a second product and assess that. Finally, they compare the two.
  • Proto-monadic. This is slightly different from the above. Participants start by assessing one product (product A), then go straight into comparing it with another. The order is usually rotated between participants, so each product gets to be product A an equal number of times.
  • Repeat paired comparison. Here, participants assess the same pair of products multiple times. The goal is to make sure feedback was not random or based on first impressions, with the goal of getting a more accurate end result.
Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

How to Conduct a Central Location Test

Recruit the right sample of participants. This is usually done by looking at your target customer base and then scaling it down so it’s small enough for the test. The most important part is to get a representative spread but also focus only on people who really are in your target demographic.

Find a good venue. This will depend on how many people you are planning to engage. It also needs to accommodate the logistical needs of the test. We have a network of tried and tested venues we’ve used over the years in multiple markets. 

Make sure you’re working with a trained team. Your team needs to be trained to ask questions, monitor responses, and ask any required follow-up questions. They’ll need to know how to do this in a way that avoids bias and doesn’t steer the participant in a certain direction.

Design the survey well. Here are some tips:

  • Include an introduction to the survey. This can be written or verbally delivered, but it should clearly explain how everything works, address any confusion, and explain the reasons behind the survey.
  • Start with some screening questions. These are usually based on things like age and profession, and the goal is to disqualify candidates who don’t fit into your target demographic or who simply aren’t a good fit. Screening can also be done in advance if you are pre-recruiting for the central location test. 
  • Make sure the questions follow logically and intuitively. Group similar questions together, and try not to mislead or confuse your participants.

Analyze and take action. Once the central location test is complete, it’s time to analyze the results and implement your findings. This is perhaps the most important part — if you do this incorrectly, you risk wasting the investment in the entire process. Ensure the results are clearly presented, and any key insights are highlighted so your stakeholders can understand them. This way, you’ll be able to use the findings to convince others in your company and drive real action.

Is Central location testing (CLT) cost-effective?

Central location testing can be a cost-effective approach for market research, depending on the specific context and research objectives. CLT allows researchers to gather data from a large number of participants in a controlled environment, which can offer cost savings compared to conducting individual interviews or surveys. By bringing participants to a central location, researchers can efficiently collect data from multiple individuals within a short period.

Additionally, the centralized setting allows for standardized procedures, streamlined logistics, and easier management of participant recruitment. However, it’s important to note that the cost-effectiveness of CLT depends on factors such as the size of the target population, the complexity of the research objectives, and the resources required for the facility and equipment rental. CLT may require additional costs for participant incentives, venue rental, moderator fees, audiovisual equipment, and data analysis.

Researchers should carefully plan and design the CLT study to maximise cost-effectiveness, ensuring that the sample size, research objectives, and methodology align with the budget and desired outcomes. It’s also worth considering alternative research methods, such as online surveys or virtual focus groups, which may offer cost advantages in certain situations.

While central location testing can provide valuable insights and efficiencies, its cost-effectiveness will vary depending on the research context and careful consideration of budgetary constraints.

Focus Groups and Central Location Testing

Focus groups are a commonly used technique within CLT. In focus groups, a small group of individuals is brought together to engage in a guided discussion led by a moderator. This interactive format allows researchers to delve deep into participants’ opinions, attitudes, and preferences. Through open and dynamic group conversations, focus groups provide qualitative insights into consumer perceptions, motivations, and behaviours. By incorporating focus groups into CLT, businesses can gain valuable feedback, generate ideas, and uncover nuanced insights to inform decision-making and drive product development. The rich and interactive nature of focus groups makes them a powerful tool for understanding consumer perspectives and refining strategies to create products that better meet customer needs.

Challenges and How to Avoid Them

If your central location test is properly planned, uses trained staff, and is professionally designed, it should run smoothly. However, here are some challenges to look out for.

  • Interviewer cheating. Sometimes interviewers can deliberately provoke biases or push participants towards certain answers. This can be avoided by working with a trusted partner and reliable staff.
  • For certain types of central location tests — for instance, where you’re recruiting people from a mall and then bringing them to a central location testing facility, you can face problems in recruiting if there are fewer shoppers than usual. For this reason, it’s best to organize tests and recruit participants in advance.
  • Biased responses to interviewers. Sometimes, participants might have a very positive psychological response to their interviewer. Maybe they like their personality or their looks. In these cases, they can give answers that might differ from their beliefs. This is another reason why training your interviewers carefully is so important.

Central location testing is a great way to get feedback on your products in a face-to-face environment with a reduced risk of bias. It allows for more interaction between interviewers and participants, delivering much more accurate and nuanced responses.

At Kadence, it’s our job to ensure you create and conduct the most effective market research projects possible — including central location tests and surveys. To find out more about how we can help, reach out to us and request a proposal.

Every marketer knows the stat: 80% of new products fail. Or 90%. Or 95%. The precise number differs, but the story is always the same. 

By anyone’s standards, those are daunting odds for businesses that want to innovate and stay ahead of the curve. How can companies buck the trend and increase their success rate? How can you make sure your product is part of the 20% (or 10% or 5%?)

Clearly, it’s vital that any new product or service has to be just right. The question is, what does just right look like? And unfortunately, the answer to that question is not up to you. 

It’s up to your customers.

That means it’s important to find out at an early stage whether or not your concept is going to attract customers to buy or not, and if so, how you can make the most of it.

This is where concept testing comes in.

What is concept testing?

Concept testing is how businesses evaluate and optimise ideas before taking them to market.

The concept in question can be a lot of different things. It might be a totally new breed of product that no one has ever seen before. Or it might be a redesign or rebrand. 

Business questions that concept testing can address include:

  • Does the concept meet customers’ needs? Do they ‘get’ it? Do they find it appealing? Does it give them something they want?
  • Is the price right? What are consumers willing to pay? Is the product commercially viable?
  • How should it be positioned? Where does your idea fit in relation to competitors? Does it suit your brand? What’s your natural place in the market?
  • What details need to be tweaked? How can your concept get better? Is everything working right? Are any features missing?

Concept testing is not a single one-size-fits-all technique, but a whole range of methods that can be combined and tailored to fit the demands of each individual project. 

Why concept testing matters

There’s no avoiding it: conducting proper concept testing requires an investment of time and money. But that’s nothing compared to the potential cost of not testing concepts early on in the development process.

Failed products or services cost businesses not just in terms of wasted investment, but in the opportunity cost of what could have been achieved instead. The same goes for a bad ad or a bad logo design.

In fact, in the worst cases, businesses can suffer reputational damage or harm to the value of their brands by launching a product concept that wasn’t right for the market. Marketing history is littered with examples of products and ads that were wide of the mark. 

In 1985 Coca-Cola famously introduced New Coke – its answer to blind taste tests where rival Pepsi came out top. But the success of brands and products is about more than blind tests, and New Coke flopped. Decades later, it’s still remembered as a major marketing misstep.

Remember Juicero? No? Not many people do. Investors pumped $120 million into the $400 Wi-Fi-connected juice maker in 2016 – even though users could get the same effect by just squeezing the juice pouches by hand. Consumers saw through it, and within two years Juicero had been scrapped.

In 2005 ESPN launched an innovative mobile phone service that incorporated its exclusive sports content. But the price was all wrong, and the lack of handset choices also put people off.

Concept testing reduces the risk of costly failures like these, and increases the chances of hitting on a runaway success.

Ultimately, it’s about proceeding with confidence.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

9 Use cases for concept testing

1. Check whether your ideas will really fly 

Just because an idea feels right to you (or your boss, or your friends, or your mum) doesn’t mean it’s commercially viable. Rigorous concept testing research shows you whether you’re really on to something or not, so you can put a rocket under the ideas that have potential, and not waste time on the ones that don’t.

2. Settle arguments and objectively evaluate ideas

Everyone’s got an opinion, right? Great concept testing can cut through corporate politics, putting everyone’s ideas on a level playing field. It busts groupthink and unites teams behind ideas that have a real chance.

3. Compare rival concepts

Pit your ideas against each other and find out what consumers prefer. Once you’ve narrowed down your choice, you can focus on the ones that performed well.

4. Define your list of features and benefits

Particular capabilities and attributes can have a make-or-break effect on the success of a product. Find out which things consumers really care about (and which ones they can do without)

5. Figure out how to make it profitable

Knowing how to manage your costs and prioritise the investments consumers care about is crucial to success.

6. Improve concepts iteratively

Hone and tweak your concept in response to consumer feedback, then test again. Research might even throw up brand new ideas which you can develop and test.

7. Determine who to target

Concept testing can give you clear pointers as to which demographic groups, geographies or market segments will get as excited about your idea as you are.

8. Decide your communication approach

Setting the right tone and getting the key points across is not something that should be based on guesswork. Try your ideas out in the wild and get valuable feedback.

9. Refine after launch

To hone your offering, and keep it ahead of the competition, testing can continue post-launch. 

Does concept testing really work?

Some in the business world feel that intuition and inspiration ought to be enough to develop great products. True innovation, they claim, comes from maverick geniuses like Henry Ford, who supposedly said that if he’d asked customers what they wanted, they would have said “faster horses”.

The thing is, Ford was right. And that’s why at Kadence International, concept testing is about much, much more than just asking people what they want. 

Good concept testing doesn’t have to mean missing out on ground-breaking innovation or settling for mediocre ideas. It means getting under the skin of your customer and letting their feelings and needs inspire solutions with the most potential.

Sure, asking people what they want or what concept they prefer is part of the story – but only part of it. You also need to tap into the psychology and emotions that drive real world consumer behaviour, and put it all in the context of the trade-offs that consumers make regarding prices, benefits, and competitive offerings.

Concept testing the Kadence way

Concept testing is one of Kadence International’s many market research specialisms. We’ve got many years’ experience of testing concepts in numerous categories, and driving the creation of successful products and services.

Toiletries

What fragrances of shower gel would appeal to young teenagers, and what kind of imagery and language could bring them to life in a way that feels fresh and different?

We conducted research in two iterative stages. First, we ran an online survey among the target demographic to screen a set of early-stage concepts and identify the ones with the greatest appeal. The winning concepts were then explored and further refined in face-to-face focus groups, with an element of co-creation, providing the client with a robust set of high-quality concepts to develop.

Takeaway coffee

A major food and drink brand wanted to know what kinds of iced drinks could prove a hit with customers over the summer.

We ran a creative workshop with the client’s product development and research teams, to develop a series of new concepts and then visualise these with the help of our design team.  We then screened these in an online quantitative test. This allowed us to isolate the most popular concepts and acceptable price ranges. We followed up with focus groups to refine and enhance the most appealing concepts, giving the client a set of strong, worked up concepts to take into development.

Travel advertising

What kinds of imagery, messaging and language would be most effective in ads aimed at grabbing the attention of high-value travellers and attracting them to a holiday destination?

We ran an online quantitative test to evaluate a series of creative routes, looking at a number of different metrics. We began by measuring a baseline level of interest in visiting the destination, so we could identify the option that gave the greatest uplift in interest. The client was then able to create an ad campaign with the confidence that it would have the impact they wanted.

Food

A major food manufacturer wanted to gauge interest among its B2B customers in purchasing via a direct-to-customer (D2C) model, instead of through wholesalers.

We conducted a series of qualitative depth interviews looking at a set of concepts for potential D2C models. This helped the client establish which options resonated, and how they could be further enhanced.

Research methods for concept testing

At Kadence we employ a wide range of concept testing methods, including qualitative, quantitative, and combinations of both. Every project is different, and we always work with the client to come up with the right blend of techniques. 

We always begin by carefully considering what the client really needs. What do they already know, and what stage are their concepts at right now? Do they require high-level responses to a selection of concepts, or detailed feedback on one in particular? Do we need qualitative inspiration or quantitative rankings? It’s questions like these that guide our choice of methods.

Surveys

Online concept test surveys are a powerful tool. They can reach thousands of carefully targeted and engaged consumers, providing rich data that can be statistically analysed, ranked and compared. Online surveys can present choices in a way that mimics real purchase decisions, and use statistical techniques to unpick the relative effect of different attributes such as features and price. Our market research experts design the structure, hone the questions, identify the right respondents and analyse the results to pull out the key insights.

Focus groups

Focus groups – are a tried and tested way of getting rich qualitative input. We bring a small group of consumers together – face-to-face or online – and conduct a carefully guided discussion, often with prototypes or other stimuli to spark conversation. Our skilled researchers know the questions to ask that get to the nub of the issue, how to read between the lines of people’s responses, and how to understand the group dynamic.

Depth interviews

For more detailed investigation, we conduct depth interviews with individual respondents, to explore themes and topics in a way that isn’t possible through other methods. It’s a great way to dig into what really drives people’s decisions and behaviour.

Ethnography

Ethnographic research is the market research equivalent of going on safari. It’s about observing consumers in their natural habitat. We ask consumers to share pictures, make videos and keep diaries, or we simply spend some time with them one-to-one to get a window on their real lives.

Online communities

Online communities are a great way to get wide-ranging feedback from consumers. We run dedicated short-term communities specifically for your research project, where participants can explore concepts, discuss them, and contribute in text, image or video form, just like in any online community environment. We can put them in groups, set them tasks, and ask them questions. The responses we get are rich and immediate. And because communities run over a period of days or weeks rather than hours or minutes, they allow concepts to be iterated as the research progresses.

The role of design 

At Kadence we always approach concept testing with creativity, drawing on our in-house design skills..

Often the early-stage concepts we are asked to test are only roughly sketched out – it might be a selection of words on a Post-It note, or a collage of images found online. No problem. Our in-house designers and creatives flesh out the concept into something that consumers can get to grips with.

It might be a mock-up of an ad, a visual piece of stimulus to represent a new service, a model or prototype of a product, or a piece of test copy for an ad or website. We’re even piloting an augmented reality (AR) tool that will allow us to create digital 3D prototypes, so research participants can use their smartphones to see how a product would look in real life, in their own home, or wherever they happen to be. Compared to a static image, this immersive new method will take things to the next level, and we expect it to be a highly cost-effective way to deliver richer, higher quality insights.

As well as bringing design skills to our concept testing research, our approach is guided by the principles of design thinking.

The five stages of design thinking are:

  • Empathise: Start by seeing the world through your consumers’ eyes.
  • Define: Set out in clear, simple terms the challenge that you’re trying to address.
  • Ideate: Generate ideas based on what you’ve learned. (This is often the point our clients have reached when they get in touch with us – but that doesn’t mean we won’t return again to the first three stages later, to generate new ideas based on the results of testing.)
  • Prototype: This is where it gets real. Create a version of your product, service, ad or design that consumers can see, feel and provide feedback on. 
  • Test: Here’s where concept testing gets going in earnest. When it’s done, you can revisit the earlier steps and come back with something even better.

We believe this approach is a key part of what makes Kadence different.

10 Top tips for successful concept testing

1. Set clear objectives

It’s important to be as specific as possible about what your aims are. What exactly do you need to find out and what is it going to help you do or decide?

2. Don’t fall too in love with your ideas

The whole point of concept testing is to see which ideas are going to work and which aren’t. If you’re too wedded to a particular idea – or too set against another– then you risk heading down the wrong path. Let the consumer voice guide you, and have the courage to let a great idea go. It’s not the last great idea you’re going to have. 

3. Find the right people

It’s important to test concepts on a relevant group of people – those who represent the potential target audience. Kadence International has been running this kind of research for many years, and we’re experts at finding and recruiting participants – even the most  hard-to-reach audiences. Whether you’re looking for a cross-section of your potential audience, a specific subgroup or a handful of super-engaged brand advocates, we can help.

4. Bring it to life

Create stimuli that bring the concept to life in a way that feels tangible and engaging for your consumers.

5. Iterate, iterate, iterate

It can take a few tries to get a concept right, but it’s worth it (remember those stats on how many new products fail?) At Kadence, we have an in-house design team at hand who can bring ideas to life, and then iterate new designs and prototypes at speed, so we can rapidly respond to feedback, make adjustments and test again.

6. Be agile

Concept testing is different for every project, and doesn’t have to follow a rigid path. Expect to revisit and repeat the various steps until you’ve got your concept right. You never know what new ideas, issues and inspiration will come up when you put your ideas in front of consumers. Go with it.

7. Read between the lines

What consumers say out loud is the tip of the iceberg. We also need to think about how they say it, why they say it and what they don’t say. Professional market researchers are trained to see through to what consumers really think and feel – and what that means for what they will buy.

8. See the big picture

Concept testing isn’t just about scores and rankings for metrics like appeal or consideration. Look at concepts in context – think about the emotional response they elicit, what they mean for the direction you’re taking your brand, or how they might overlap with other offerings you already have on the market.

9. Work with a partner with the right processes in place to protect your early stage ideas

One of the most nerve-wracking things about concept testing is putting raw, untested early-stage designs and ideas in front of consumers. What if details end up in the wrong hands? Be sure to work only with trusted partners that have secure procedures and technologies for both online and in-person research. We’ve been doing concept testing research for years at Kadence, so we have stringent processes in place, and our research platforms include built-in security features that allow images to be watermarked, and videos to self-destruct after viewing. In over a decade, we’ve never seen a leak.

10. It’s never over

Once your product is launched and out there for real, you’re bound to learn new things, or want to make changes to adapt to fast-moving markets. Be ready to test out new ideas and keep iterating, so your product can keep getting better and better. 

What is concept testing? Essentially, it’s the process of getting your audience to evaluate or give feedback on an idea before releasing it to the public.

It can be used for adverts, physical products, websites, landing pages, and more. Here are some of the main reasons to use concept testing:

  • It’s a great way to evaluate ideas early on and make tweaks before sending something out to the wider public
  • It helps your team get company buy-in on ideas, justifying decisions by proving they work with empirical data

For these reasons and more, companies draw on the power of concept testing to make sure the ideas they come up with are actually viable in the real world before putting them out.

In this article, we’ll take a deeper dive into concept testing and what it’s all about. We’ll cover how to do it and the steps you’ll need to take.

How Does Concept Testing Work

Concept testing takes different forms depending on what you want to test, but generally, the process involves asking current or target customers e to engage with your concept and then evaluate it – either in person (for instance in a focus group) or online (either in an online community or by completing a survey or questionnaire to evaluate it.)

One of the most popular and effective ways of testing concepts is through an online survey so in this article, we’re going to focus on our top tips for getting this right.

When testing concepts through an online survey we ask questions to determine the appeal of the product, how innovative consumers thought it was, and so on. The goal is to gather feedback and to find out how the typical customer will respond to the concept, along with identifying any areas that need improvement.

So how do you get started?

How To Approach Concept Testing Through An Online Survey

Set a Clear Goal at the Outset

Before beginning, it’s extremely important to set a clear goal for your test. This is crucial because it’s what gives the survey its overall structure and direction.

Ask yourself and your team questions like:

  • Why are you doing this?
  • What kind of action will you take with the results?
  • How does this test fit into your overall strategy?

The answers to these questions will help you select your testing population better, choose the right metrics to track, and conduct a more effective and coherent survey.

Pick the Right Metrics to Track

The metrics you choose to track in your concept test are extremely important. They can make the difference between a useful survey that drives genuine positive change, and one that has very little effect other than to waste resources. Some examples of metrics to track include:

  • Purchase intent (how likely would you be to hit the buy button?)
  • Innovativeness (how innovative is the concept?)

These metrics will form the basis of your questions and shape your survey. Questions should focus on areas such as likes and dislikes, overall appeal, uniqueness, and innovativeness.

Give Your Survey A Clear Structure

Your survey should have a clear and coherent structure. Each section should follow intuitively from the next, with similar questions grouped together. You don’t want participants feeling  confused or frustrated at any point — it should all make sense.

A good way to help this along is by including an introduction section that clearly outlines what the respondent should expect from the survey, , along with instructions on how to complete it.

It’s also important to consider which method you want to use. Here are the main options:

Concept Testing Survey Methods

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The two main types are monadic design, which uses a single concept, and sequential design, which asks the participants to compare multiple concepts.

Let’s break that down a little further:

  • Single-concept (monadic) design. Here participants analyse one concept, learn the features, and then give their feedback and opinions in a survey. It’s a great way to get in-depth responses around one single concept, but it can be time-consuming and expensive.
  • Multi-concept (sequential) design. In this kind of test, participants do all the above, but then move onto another concept and repeat, and so on. It saves time and money by combining multiple concepts into one session, but there is a risk of participants getting bored and giving lower-quality responses as time goes on. What’s more, responses can be influenced by the order in which concepts are presented, so we make sure to always randomise the order to avoid any bias.

How Long Should a Concept Testing Survey Be?

There are many different opinions on how long your survey should be but our view is that it shouldn’t be any longer than 20 -25 minutes, At this point, respondents can suffer from what’s known as “survey fatigue” and the quality of responses can deteriorate as attention drops For example, SurveyMonkey recommend keeping it under 30 questions. Fewer focused questions can be better than dozens of less relevant ones.

Ultimately, it will depend on your concept, your audience, and the resources you have available.

Ask Screener Questions and Demographic Questions

Screener questions are a way to see if your respondents are relevant to your customer base. They’re usually placed at the beginning of the survey, and the goal is to filter out unqualified participants.

You shouldn’t be too specific here — you don’t want to filter everyone out. For example, let’s say you’re testing an online payment service. The screener question might be, “How often do you shop online?” 

Demographic questions usually come at the end of the survey. They’re a way to find out a little more about the people you’re speaking to and . usually focus on things like age or profession. Collecting information on demographics allows you to ensure that your survey is representative, as well as to analyse responses based on age, gender or socio-economic grade to identify any significant differences. Demographic questions can be considered sensitive, so by putting these at the end of a survey, you avoid people being put off from taking part in the survey from the outset.

Send the Survey Out

Once the survey is ready, it’s time to select a sample of people to test it on. This should be  representative of your overall population you are interested in targeting.

Analysis and Action

The final (and most important) part of the process is to analyze the results of your concept test and take action.

The way you analyze the results depends on how the survey was structured. For example, if your survey used Likert scores (asking participants to answer on a scale of ‘very unlikely’ to ‘very likely’, you can use something called top 2 box scores in your analysis. This allows you to use one metric to compare across concepts or attributes. Remember –  never pick a ‘winner’ unless there’s a statistically significant difference.

When you have your results, it’s time to put them to use. You can use your results to justify a product launch, get buy-in for a concept, or fuel further R&D.

When sharing your results, for example with company management, it’s important to be as clear and detailed as possible. Do all the work for them, and leave them in no doubt about your findings.

Concept testing can be an extremely effective way to get hard data in support of a concept. It helps you and your team make clear-headed, evidence-based decisions and create products that delight your customers and drive the company forward.

To find out how Kadence can help you harness the power of concept testing — and take a more data-driven approach to your organisation in general — reach out to request a proposal.

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 organisations, 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

Over the past few months, COVID-19 has had a significant impact on how we think and behave when it comes to food and beverage (F&B). When lockdowns were implemented in countries around the world, non-essential retailers were closed, dining-in was prohibited, and supply chains were tested. As a result, buying behaviours and attitudes have changed and F&B retailers are having to respond rapidly. Those that are able to act quickly will be able to emerge triumphant past the crisis, with many new strategies remaining relevant even after the pandemic. 

As countries are opening up, a common question among businesses is ‘what next?’ Governments around the world are trialing different measures to reopen the market, while trying to minimize the likelihood of a second wave of mass infections. Businesses are on one hand rapidly trying to adapt to the latest governmental policies, and on the other, thinking about how they should change to cater to a marketplace that in some ways looks very different. We’ll explore 3 key trends, with our thoughts on what is likely to stay post-COVID when it comes to F&B:

  1. Consumer behavioural changes
  2. Business adaptability
  3. Unfulfilled consumer needs

‘Stay home projects’: behavioural and purchasing patterns arising out of having to eat at home

Short term changes

While purchases of luxury products have largely decreased during the pandemic, there was a sharp rise in everyday products. With the closure of physical stores, and restaurants doing takeaway only, more people embarked on different ‘stay home projects’, experimenting with homemade recipes.

According to social listening data from Circus Social, people in Singapore, Japan, South Korea and Indonesia ended up making more homemade snacks during this period. In China, the sale of egg whisks on online retailer Tmall increased five-fold year on year. In Singapore, essential baking ingredients such as yeast and baking soda were wiped off the shelves in most supermarkets during the first month of the Circuit Breaker, and many consumers looking for alternatives online. This shift has had a huge impact on supermarkets and grocery retailers, forcing them to look for alternative sources of supply and diversifying their supply chain strategy.

The surge in interest in ‘stay home projects’ has also led to a dramatic increase in the viewership of inspiration channels as well as recipe searches, with Instagram-worthy home café recipes trending on social media shortly after they were posted. This presented opportunities for brands to think about showcasing their products through strategic product placements on these channels. This may not be a novel strategy, but it has become highly relevant given the larger share of eyeballs on these channels during this period. In addition, we see F&B brands offering home cooking meal kits, riding on the wave of ‘stay home projects’ and engaging with partners to showcase the ease of using these meal kits online.

Long term trends

We believe that many of these trends will persist even after lockdown. More people, including newbies in the kitchen, have found a love for cooking and baking, while homecooked meals have also brought many families closer together. With the increased appreciation towards ‘home projects’, we are expecting more people to cook at home than in pre-COVID times.

Improving e-commerce channels and offline-to-online services will be also important to meet the needs of consumers in the future. F&B retailers will need to up their e-commerce game. While brick and mortar stores will still remain relevant in the post-pandemic world, this period has shown the importance of having a strong e-commerce presence and robust supply chain. Consumers will become more used to shopping for groceries online, especially for products that they cannot typically find in the brick-and-mortar stores. If F&B brands want to extend their reach to a wider audience through e-commerce, the time to do so is now.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Adaptability: the virus has become the catalyst for tech and sales model evolution for F&B retailers

Short term changes

With every crisis, there is opportunity. COVID-19 has accelerated the evolution of the food retail space, and retailers are adapting in order to realign with the shift in purchasing priorities and new lifestyles.

When bubble tea stores were mandated to close during the Circuit Breaker in Singapore, some partnered other restaurants to continue their sales. Some cafes offered coffee subscription plans for the caffeine-deprived, and others introduced ‘Circuit Breaker meals’ to go along with their drinks. Restaurants that were limited by physical space, or located in less accessible areas, are now able to be on a more level playing field with other restaurants, as long as they have presence online and support home deliveries.

For some brands, the pandemic had a positive impact on their business as they discovered new opportunities online. More consumers got to know some establishments through social media and review sites, meaning that these brands are now able to reach more customers than ever before. However, being able to realise these positive outcomes depended on how fast retailers could adapt to the F&B landscape in lockdown. Whilst some partnered with established food delivery apps such as GrabFood or Deliveroo, others drew on their own staff for deliveries and adopted alternative ways of ordering, such as using SMS/WhatsApp, Instagram messages, or their own websites. During lockdown, consumers were more tolerant of the usability of the platform – instead being able to demonstrate that you were adapting quickly to meet consumer needs was more important.

Long term trends

In the long run, restaurants need to reassess the competitive landscape in order to continue to stand out post-pandemic. Every aspect of the typical sales funnel, such as brand awareness, consideration, and trial, would have shifted due to the purchase behavioral changes during the stay home period. Previously unknown brands may have gained popularity as they reached more consumers’ homes. Consumers will also have different assessment standards for restaurants post-COVID, such as hygiene standards. Retailers therefore need to reconsider their USPs to stand out amongst new competitors in the market.

Unfulfilled need: starving for experiences – an area brands can focus on during and post COVID

Short term changes

As the pandemic subsides, will restaurants still retain their delivery model? Yes and no. Less popular food places, and those restricted by physical location or the space required for social distancing may continue to improve their online platforms to expand their reach through deliveries. But, high-end restaurants and cafes may not. While taste is a critical component of the F&B experience, it has to go in hand with the service, the ambience, and even the company while dining in. Psychological research has also shown that the sense of taste plays only a small role in the whole dining experience. It is a multisensorial experience, which can be best presented in the curated setting of a restaurant, with its choice of plating, lighting, background music, and interior design.

Even though there are do-it-yourself packs for bubble tea or cocktails, for most the ambience of eating or drinking out is unbeatable, so F&B retailers will need to consider how they deliver the experiential aspect, whilst social distancing continues, in order to differentiate from other brands.

Medium to long term trends

Post pandemic, consumers who have been starved of in-restaurant F&B experiences will be hungry for these – and may not mind paying a premium. How can F&B retailers tap into this need while keeping in mind the greater expectations for hygiene standards?

Against, this backdrop, there’s an opportunity for F&B outlets to increase and monitise service personalisation. Having more attentive service, customisable menus and dishes, or even food that can ‘interact’ with the diner – basically things that cannot be recreated at home – can be considered by F&B retailers.

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.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

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. 

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

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 behaviours 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 sanitiser 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.

Different digital approaches deliver different levels of depth and detail of insight

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?

Blog_Image

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 analysing 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.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

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.