2022 may be in the rearview mirror, but we wanted to look back at our most visited posts and articles for the year. Researchers are naturally curious people, so here are the pages you sort out the most in the past year.

The benefits of market segmentation

When you know, you grow! Segmentations can guide everything from marketing to product development to identifying new market opportunities. In this article, we outline the key benefits of market segmentation.

READ THE FULL ARTICLE HERE: https://kadence.com/the-benefits-of-market-segmentation/

What is market entry strategy?

Entering a new market can be a complex process. Having a robust strategy maximizes your chance of success. In this article, we explore what makes a sound market entry strategy and the differences between entering a new domestic market or an international one.

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-market-entry-strategy/

What are the four market entry strategies?

When entering a new market there are many routes you can take. This article explores four of the main type of market entry strategies and the pros and cons of each.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/what-are-the-four-market-entry-strategies/

Biggest risks and benefits to market entry

Launching your product or brand into a new market can be littered with many potential pitfalls, but often the benefits outweigh any risk. In this article, we take a deep look at both the risks and benefits of entering a fresh new market, so you are armed with the information to help you succeed.

READ THE FULL ARTICLE HERE: https://kadence.com/biggest-risks-and-barriers-to-market-entry/

What is market size, and why is it important?

In this article, we not explore what market size is and why it is important but also look at the best ways to calculate market size and is there such a thing as too small when it comes to your brand or product’s serviceable obtainable market.

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-market-size/

5 major challenges of market segmentation and how to mitigate them

Market segmentation can be riddled with challenges. In this article, we explore some of the main obstacles to market segmentation and equip you with the knowledge and tools to segment your market correctly.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/5-major-challenges-of-market-segmentation-and-how-to-mitigate-them/

What is quantitative research?

What is quantitative research? How is it different from qual? Why is it important? and what are the best collection methods? All these questions are answered in one of our more popular articles for 2022.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/what-is-quantitative-research/

What is top-down market sizing?

Top-down market sizing is one of the two main methods researchers can use to calculate the serviceable obtainable market. This article looks at what top-down market sizing involves, how you can use it in your business, and the strengths and weaknesses of this approach.

READ THE FULL ARTICLE HERE:  https://kadence.com/what-is-top-down-market-sizing/

The top 5 challenges in international market research

Researching a new market in another country can be a challenge to get right. This article explores the top five challenges in international marketing research and our top tips for overcoming these.

READ THE FULL ARTICLE HERE:  https://kadence.com/the-top-five-challenges-in-international-marketing-research/

What is concept testing in new product development?

Ideation is often seen as the easiest part of product development. But how do you know that your great idea is actually what the market wants? This article looks at concept testing and the different approaches to testing new products. 

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-concept-testing-in-new-product-development/

Now that 2022 is a wrap, we can’t wait to share more insight and information to help you with your research goals. Sign up below to receive our monthly newsletter Connecting the Dots, to get the latest news from Kadence and our team.

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.

As 2022 comes to an end, we see the rise of the cautious consumer in an inflationary economy fraught with rising costs of living and uncertainty. Today’s consumers have adopted new behaviours worldwide, wanting hybrid experiences and engaging with sustainable and purpose-driven brands. 

Here we have compiled our best trend reports and guides that look at 2022 and beyond in one convenient place.

Speed Bumps on the road to change in 2022.

Automotive trends for 2022

automotive-trends-report

To help brands navigate the shifts, we developed an exhaustive report exploring five key trends influencing automotive purchases for 2022 and beyond, focusing on the post-pandemic recovery, the E.V. revolution, the impact of A.I. and connected vehicles, and generational perception changes in major global markets. 

DOWNLOAD the TREND report here

Digital Payments and E-Wallet Usage and Behaviour in Indonesia.

This regional report reveals the perceptions and usage of common e-wallet providers across different Indonesian markets and regions, focusing on shifting consumer behaviour and how brands respond to these shifts. 

READ the full report here 

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.

Food and Beverage trends to watch in 2022 and beyond.

food-and-beverage-trends

It can be challenging for food and beverage executives to stay abreast of these consumer trends in an industry influenced by ever-changing consumer behaviours and changing tastes.

This report has compiled four notable changes in consumer wants and needs globally.

DOWNLOAD the full report here.

The Asian Consumer: 4 Key Trends for the Next Normal.

While many emerging regional trends have been in the pipe long before the pandemic, almost all indicate an active and involved Asian consumer looking to the future for smart alternatives to ageing market norms.

This report is designed for companies looking to grow their presence in Asia. It is based on the analysis of local experts across Kadence International’s eight Asian offices: China, India, Singapore, Thailand, Vietnam, Indonesia, the Philippines, and Japan.

 DOWNLOAD the trend report here

The Definitive Guide to Gen-Z.

genz-consumer-behavior-report

Now making up one-third of the world’s population, Generation Z or Zoomers are quickly entering the consuming class.

Being true digital natives, Generation Z presents a unique set of challenges for brands looking for loyalty.

This 50+ page guide delves deeper into the wants, needs, and demands this generation is looking for from brands and how leading brands in ten countries respond to them. 

 DOWNLOAD the complete guide here

About Face: Emerging global trends in the beauty and cosmetics industries.

beauty-trends-report

The beauty, personal care, and cosmetics industry is thriving.

Thanks to an increased “on camera” world, people of all ages want to look their best.

This report looks at the industry from around the world, highlighting trends from Asia, Europe, and the Americas.

 DOWNLOAD the complete trend report here

Feeling Good: Powering the Next Gen of Fitness and MedTech.

fitness-medtech-industry-trends-report

As people prioritise their health and wellness worldwide, technological advancements in these industries are helping consumers monitor their health much more quickly.

This report looks at the health, wellness, fitness, and MedTech industries from around the globe, showcasing some of the world’s leading brands in the space.

 DOWNLOAD the complete trend report here

The Future of Online Shopping.

online-shopping-consumer-trends-report

Digitisation has reset the online shopping game, and the pandemic has accelerated technology adoption by both brands and consumers.

Today, the most successful retailers have adopted technology at warp speeds. With breakthrough technology complementing every step of the retail process, where are we headed?

This report examines online shopping, where it’s at, and what the future holds.

DOWNLOAD the complete trend report here

To stay up to date with our latest research reports, follow us on LinkedIn or subscribe to our monthly newsletter 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.

If you want a crocheted sweater or a bespoke engraved cutting board but need help finding an artisan, you might turn to platforms like Etsy that connect buyers with artisans on their eCommerce platforms. 

The last decade has brought a massive consumer shift in mindset. Consumers today care about where their products come from, who produced them, and under what conditions they were made. They care about the impact of everything they purchase —on the workers and the environment. 

Many trends are responsible for the maturation of the artisan economy around the globe, such as the rise of e-commerce, a growing interest in the environment and sustainability, the demand for rare, unique, personalised items, and a desire to support the local economy and small businesses. 

Consumers care about sustainability, ethical consumption, and small-batch production and are looking for unique pieces with a story to add to their lives. 

There has been a massive demand for handmade products globally. Handmade or artisanal products are high quality and unique, making them desirable for people looking for one-of-a-kind products with a strong narrative. 

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 need for personalization and the recent movements supporting local businesses and artisans have also helped promote bespoke brands or handmade products.

Unlike mass-produced goods, handmade products have certain deviations, and no two products will be the same, adding to the uniqueness consumers seek in the products they purchase.

When consumers purchase a handmade product, they are also buying into the story and history behind it and building a deep connection with the artisan making the product while supporting craftsmanship and local businesses. Consumers are avoiding off-the-shelf pieces, and artisan goods are becoming a staple. 

According to a U.K. Crafts Council report, 73 percent of U.K. adults had bought a craft in 2019 —which amounts to almost 25 million handmade items. About 32 percent of today’s buyers are under 35 years of age, making the younger populations of Millennials and Gen Z the biggest craft shoppers today. There are 11,620 craft businesses in the U.K., with over 43,000 employees. 

Consumers often save crafts and techniques that face extinction and erasure by purchasing artisanal goods. And now, many big brands want to add a piece of the traditional method to their products. For instance, independent watchmaker Daizoh Makihara decided to use the traditional Japanese glass-cutting technique called Edo-kiriko for the dial of his first watch. He found eight companies that specialised in the method, but only one agreed to do it. This was Kyosuke Hayashi, the president of Mitsuwa Glass Kogei. 

In English, Edo-kiriko means “cut glass from Edo”: Edo is an old name for Tokyo, and kiriko is the name of the cutting technique. This partnership gave birth to the first edo-kiriko watch in the world in 2018. 

The weavers and artisans work hard to keep the rich Indian arts and crafts heritage alive. According to IBEF, the total handicraft exports from India reached $3.5 billion in FY20. With over 200 million artisans, India’s handicraft sector is the second largest employer after agriculture. 

While fast fashion is pressuring the environment with its heavy carbon emissions, water waste, and poor working conditions and treatment of workers, consumers are hungry for a better model that offers trendy essentials and accessories without harmful environmental and socio-economic impact.

eCommerce has enabled many skilled artisans and hobbyists to profit from their passion and talent. 

Consumer obsession and interest in handmade products have also seeped into reality T.V., and craft reality T.V. shows have become quite the rage. 

British reality show Handmade: Britain’s Best Woodworker is a furniture-making competition similar to a cooking contest that has captured the hearts of audiences worldwide. Every major network and various streaming platforms are in on the trend. Other similar shows include BBC’s All that Glitters, Netflix’s Blown Away, NBC’s Making It, HBO Max’s Craftopia, ITV’s Bling, and Channel 4’s The Great Pottery Throwdown.  

The pandemic spurred the demand for handmade goods. Online platforms have fuelled much of this growth: in December 2018, Etsy, a U.S.-based online platform for artisans to buy and sell handmade goods, reported that there were 220,000 active sellers in the U.K. with a further 9,000 makers on Folksy, a U.K.-based online platform to purchase handcrafted gifts and original artwork, sold directly by the artists and designers who have created them.

Top handmade product categories on Etsy 

According to a report, the top handmade product category on Etsy in 2020 was home and living, with a 25 percent seller share, followed by art and collectables (21 percent), jewellery (15 percent), clothing (11 percent), accessories (8 percent), bath and beauty (6 percent), toys and games (4 percent), bags and purses (3 percent), weddings (2 percent), and books, movies and music (2 percent).

Etsy has three main sections in its online marketplace: Handmade, Vintage, and Supplies. Handmade represents 85 percent of sellers, Vintage represents 6 percent, and Supplies represent 12 percent of sellers.

Etsy, founded in 2005, now has more than 1.4 million sellers and 19.8 million buyers. Etsy focuses on handmade and vintage items and features over 5.4 million craft supply items.

Handmade gifts provide a personal touch and make the gift unique and personalised. This unique factor has driven platforms and brands that offer handmade products as popular choices during the Holidays. 

There has been an 80 percent jump in searches on the creator-driven platform Etsy for Holiday gifts in the past three months compared to last year. In 2020, CNBC reported that Etsy saw a 156 percent increase in search traffic during three months compared to the year prior for custom gifts.

Case Study: How Etsy carved a niche for the handmade sector using an e-commerce platform

The Overview

Based in Brooklyn, New York, Etsy is the largest online marketplace globally, connecting buyers to sellers of handmade and vintage goods and craft supplies. Etsy is built on a smart revenue model: it charges sellers a listing fee and a commission and upsells advertising services to push a seller’s products to boost reach. The company expanded through acquisitions, including Blackbird Tech for USD 32.5 million, Reverb in 2019 for USD 275 million, and the fashion resell marketplace, Depop in 2021 for USD 1.63 billion.

The company has competitors like Amazon Handmade, Big Cartel, Folksy, iCraft, and eBay. 

The Approach

Etsy took the value creation approach and narrowed its product offering to handmade or artisan-made products. While it has created a community of buyers and sellers, it moved its focus to buyers as the core market when eBay vet Josh Silverman took over Etsy’s reins. A year after hitting an all-time low in 2017, Etsy’s stock rebounded and grew; today, it stands at USD 119.74 a share. Defining and focusing on its key audience helped the brand grow. 

Once the brand identified its core audience, the buyers, it hiked the fees it charged its sellers from 5 percent to 6.5 percent. Even though 20,000 of its sellers went on strike, the company did not budge, and the results showed in the most recent third-quarter earnings in 2022, reporting a revenue bump of 11.7 percent over the same quarter of 2021, to USD 594.5 million. 

Etsy is also attracting more buyers to its platform via the mobile app. In 2021 alone, the brand reported a 45 percent increase in app downloads bringing 5.7 million new shoppers to download the app. The brand also leverages targeted, compelling email offers based on items favourited or shops browsed. The brand funded discounts and sent them to 18 million shoppers in 2021, and also provided discount technology allowing shoppers to discount goods from their shops. The brand also encourages buyers to follow more shops through sweepstakes and contests. 

The brand also offers multiple additional services to facilitate communication with sellers, on-platform transactions, and access to ratings and reviews. 

Etsy allows its sellers to voice their concerns with congress members and local and federal governments. And lastly, the brand continuously invests in retail technologies like machine learning via acquisitions. The brand has designed convenient distribution channels, upgraded buying and selling software and merchant services, and improved its social media presence to boost brand awareness. This month, Etsy rolled out a new image search feature to allow shoppers to find an object faster than with a keyword search. Users on iOS can now tap the camera icon and search for images by uploading a picture. Etsy then scours its platform to find products visually similar to the ones the user is searching for. Etsy plans to expand image search to Android app users soon.

The Results

Etsy’s impact on the artisan economy is robust. The most recent quarterly earnings report disclosed revenues had risen to USD 198 million, a 31.64 percent increase year over year. Etsy currently holds a market cap of just under USD 5.5 billion – quite a climb from its USD 1.1 billion market cap back in March 2017. The brand attracted 6.3 million shoppers in the third quarter of 2022, ending with 88.3 million active buyers on the Etsy marketplace.

In most developing nations, the handicraft industry is fragmented, lacking legal Intellectual Property laws surrounding its products, and artisans not getting fair compensation for their craft. 

In most countries, handcrafts are highly valued because of the high skill level and talent required and are sold in luxury stores at premium prices. However, although India has a rich culture and many categories of handicrafts, they still need to be given their deserved value and place. Ramesh Menon founded Save the Loom, a nonprofit community group to revive, restore, and restructure the handloom industry in India.

Many other such organizations are helping artisans overcome the many challenges they face. However, online platforms and eCommerce websites like Etsy, Folksy, Amazon Handmade, and others have helped create a viable worldwide path forward for the handmade industry. 

While not every product fits the artisan-made model, the lessons from this growing trend apply to all categories. Consumers want to feel connected to the story behind the product, how a product is made, and the feel-good impact on the environment and people after purchase.

For more insights into the shifting trends in online shopping and consumer behaviour around the globe, download our complete report, “The Future of Online Shopping.” 

Product managers and designers frequently get requests to design new products and add new features to existing products, making it difficult to determine which ideas to invest in for the best outcome. 

This is where concept testing comes into play. 

Concept testing ideas and even features for existing products before moving into implementation and design is the best way to approach a customer-centric product development process.

What is concept testing?

Concept testing is a market research method to get user feedback before bringing a new product or feature to the market. It often allows users to provide their input on potential solutions. When end users are involved in the initial product development and design phase, it takes the guesswork out of what consumers want and allows them to shape the idea before it is launched in the marketplace.

It involves putting the idea in front of real consumers and asking them to assess the product’s value in multiple areas. 

Whether the goal is to bring a new concept or product into the market, update an existing product, or change pricing or messaging, input from real customers translates into informed decision-making. This allows brands to save time, money, and resources while preventing financial losses due to failed products and also helps protect the brand and customer relationships.

In today’s highly competitive business environment, brands need to employ a customer-centric approach, and all decision-making should start and end with the consumers’ interests and preferences in mind.

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 value of concept testing

According to studies, more than 25 percent of total revenue and profits come from launching new products, which is true across industries and product categories. 

With concept testing, brands can validate an idea or vision before investing valuable resources into building something that may not resonate with its users. It also helps brands identify potential challenges in executing the idea. Concept testing precedes usability testing, which must be conducted once the refined design prototype or wireframe becomes available. Product testing is crucial and happens after the final product is ready for launch to get first-hand information on how consumers will respond to the final product. 

Launching a product or service is a massive undertaking, even for larger organizations. Research shows only 55 percent of all product launches occur on schedule, and 45 percent are delayed by at least one month. 

Therefore, brands must ensure the product resonates with the end user before launching it. Concept testing helps confirm that your assumptions around a solution or idea are correct. 

Concept testing comes after the ideation phase and is a way of testing ideas that have been developed to an extent but need further refinement and provides a more detailed understanding of the needs of your potential customers. 

Concept testing may also be used to design a complete User Experience (UX). According to studies, every USD 1 invested in User Experience (UX) design results in a USD 100 return. Providing consumers with a seamless UX is crucial for brands to stay competitive in today’s volatile market conditions. 

Concept testing should be considered an unobstructed learning process where brands open the concept up to end users to discover their perceptions —without any predefined parameters.

Benefits of concept testing

Concept testing minimises risk and is easy to set up.

Concept testing allows brands to test and understand how real consumers will feel about the product before investing time, money, effort, and resources into it, minimising the risk of product failure. 

Concept testing can help you optimise the concept before the launch.

Concept testing can provide more information regarding the potential roadblocks to implementation, consumer perceptions, price perceptions, competition, and how the new concept fits into the brand. 

It also allows brands to test multiple solutions or concepts to arrive at the best one and helps provide some information on potential market demand.

Research helps forge strong brands.

Concept testing is a great way to show consumers and investors that your brand believes in constant innovation, has a customer-centric approach, and is transparent. This helps boost loyalty and enhance brand value and equity.

Concept testing prevents costly mistakes.

Even some of the biggest brands, like Google and Coca-Cola, are not immune to making mistakes due to false assumptions about what consumers want (or do not want).

In 2012, Google first announced Google Glass —an eyeglasses-shaped head-mounted display with smartphone functionality. It was based on the premise that “technology should work for you —to be there when you need it and get out of your way when you don’t.” The brand wrongly assumed what consumers wanted from technology. In 2015, the company discontinued the product due to low market demand. 

Coca-Cola is another great example illustrating the importance of concept testing. When Coca-Cola’s flagship cola drink started losing market share to Pepsi, it changed its drink formula for the first time in 99 years. It introduced New Coke, which failed miserably. The brand reintroduced its older recipe and rebranded it as Coca-Cola Classic.

Similarly, in 1990, US-based beer Coors introduced Coors Rocky Mountain Sparkling Water to tap into the fast-growing bottled water segment but fell flat as the Coors name confused consumers. 

Concept testing boosts confidence in product launch and team buy-in.

If you have a concept but need to assure the senior team that it will work, concept testing is the best way because you can show evidence that real consumers will use it.  

The importance of well-designed questions

Over 80 percent of all new products fail, and concept testing allows brands to determine if a new product or feature is a good market fit by asking real users the right questions. 

Therefore, you must ask the right questions that will give you valuable insights into the needs and requirements of real users. Determining the metrics, you will measure in your concept testing is crucial. 

You will set your goals depending on the concept and methodology you choose, and your survey questions should aim to reach these goals. For instance, if you are testing a new type of single-serve, wireless blender, the goal is to determine if your potential customers need a product that makes smoothies on the go. The questions will revolve around understanding the consumer better and if they need a solution like this, along with any other features they might want to see in this blender, for instance, a sippy cup cover or straw to go with it. 

This is where research design comes into play, and the research questions depend upon the business need. For instance, if a brand is taking its concept to a new market segment, they need to conduct a needs analysis using qualitative and quantitative research methods. The questions will be designed to find out if the concept will work in the new market. 

Let’s say the brand is testing a new concept before its initial introduction. In that case, they need to conduct Concept Fulfillment utilizing qualitative research to determine if there is a need for the new product concept.

Some common goals brands set for concept testing are as follows.

  • Get a metric on how likely existing customers and new market segments will be to purchase the product. 
  • How the product will do based on current competition in the market, and what features will make it stand out. 
  • Learning which features would get existing customers to purchase from the brand.

These goals provide brands with invaluable, high-quality data and insights into consumer behaviours, attitudes, and preferences. 

Concept testing methodologies

Brands test concepts in many ways and all the methods involve getting feedback from potential users on the idea’s validity. It can be done via a face-to-face or remote interview. Depending on the concept and the study’s goals, it can be done asynchronously or unmoderated. 

There are four standard methods for concept testing. They are based on the number of ideas you want to evaluate.

Comparative testing

This method is used when you have more than one potential concept to test. Brands use the comparative method to see how multiple concepts measure against each other.

When using this method in a survey, respondents are asked to rate each concept against a set of criteria. Questions must be specific features that can also be ranked to determine which features are most preferred by respondents.

Monadic testing

Unlike comparative testing, monadic testing shows research participants one product or idea. 

This concept testing takes your entire target audience and breaks it into subsets, showing only one concept to each. These user-friendly tests provide a deep dive into the consumer’s mind. They also reduce bias and provide accurate results.

Sequential monadic testing

A sequential monadic survey shows your entire target audience or a subset of the audience, either all of your concepts or some of them—with at least two concepts being shown randomly.

Proto-monadic testing

Proto-monadic testing combines sequential monadic and comparison testing. It asks participants to analyze concepts and compare features to help them choose the best concept.

Steps in Concept testing survey design

When you’re ready to test your concepts, there are four steps to follow:

Choose the most suitable methodology for your business needs.

Select the best methodology depending on the scope, time, and number of features or concepts being tested.

Set a goal.

Work backwards, set a goal based on the objective and the information you want to gather from your customers, and design survey questions accordingly.

Choose survey components appropriately.

Make sure you use the most appropriate components for your surveys. From Likert scales to images and demographic questions, brands should carefully make these choices to design a survey with questions that will produce valuable data.

Identify the most promising concept.

Review the collected data to get a clear picture of the concept favoured by the target market. Dive deeper into the most desirable features to determine which concept has the highest potential for market success. 

If the data reveals something unexpected or is something you did not imagine before, feel free to change course. This is why you conducted concept testing in the first place —to ensure the concept works in the marketplace. The ultimate goal of this study is to do what’s profitable for the brand. 

Real-world examples of Concept testing

It’s one thing to determine if people want a product or service and yet another to say they are willing to open their wallets and buy the product. 

This is where purchase intent testing comes into play. This helps determine if people will purchase your product or service at your desired price.

Many brands test the product without the price first to gauge consumer interest and later add price to determine purchase intent. 

US-based Electric Vehicle brand Tesla conducted purchase intent testing for a car model before it even designed it.

In 2016, the pioneering EV automobile brand tested purchase intent for the Tesla Model 3 before it was even designed. Interested buyers were asked to put down USD 1,000 for the Tesla Model 3, and about 400,000 people ended up putting down money to book the car. The participants also provided feedback on the car, and Tesla made modifications and features based on real customer input. This also gave Tesla the confidence and the capital needed to develop the car. 

Another undefeated brand due to its concept testing research is Denmark-based Lego, a plastic building-block toy company. For years, Lego was predominantly bought for boys, so the brand conducted extensive market research to discover that boys and girls played with Legos differently. Boys preferred stand-alone structures, while girls enjoyed recreating backgrounds, scenes, and environments. 

In 2012, based on these findings, the brand launched the Lego Friends product range with cafes, salons, supermarkets, and so forth to tap into the new consumer segment successfully. 

Concept testing is a great way to evaluate and identify winning product concepts. It promotes innovative thinking and developing products, features, and pricing that resonates with end users. It allows brands to stay ahead of the competition by developing and designing concepts based on market demand and creating products only after testing the idea and getting invaluable feedback from real consumers. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

Back in the day, Qualitative research was all about understanding the person behind the responses by watching his actions, behaviour, mood, tonality, and other giveaways while talking about specific products and services. We still do it (some of it) but with less dependency on human competence and more reliance on the tools believed to be fast, precise, and less intruding.

In Qual research, most of these tools are used for analyzing data, app testing, and emotion decoding through Artificial Intelligence (A.I.), which can address multiple research studies like UI/UX testing, NPD, product/concept test, etc. While these tools help capture the required details without bias, they still have some limitations.

Typical Qual research is done to understand:

  • Human behaviour and interaction with various categories (brands/ services/products)
  • Trends and impact 
  • Product and concept evaluation
  • Segmentation (Pen portraits)
  • U&A 
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.

Researchers apply various approaches to meet the objectives depending on the overall scope of the research project. However, basic principles like the need to be an open-ended, free-flowing discussion to gain in-depth knowledge and reasons for a particular behaviour or response and generate actionable insights stay the same. 

These days, technology is helping make research much more accessible and cost-effective for brands, but it is yet to be seen if it serves the intended purpose.

Before the pandemic, online interactions were not a preferred research methodology for most brands as they offered a different experience than face-to-face interaction and were considered an ‘optional methodology.’ 

However, the pandemic changed that as there was no option other than doing online research and gradually posting using an online methodology for various research activities. Brands found it to be both cost and time effective. With this began the race for offering/ innovating several tech/ tools to enable Qual research to deliver insights irrespective of situational limitations. There are hundreds of ‘tech research agencies/boutiques’ currently offering various tech solutions like UI/UX, Neuro, A.I.-enabled analysis (from transcriptions/ recording), and emotion decoding tools, and a considerable amount of R&D is already happening in this area.

These tools are certainly helpful in today’s era when not just research but the overall ecosystem is evolving, and tech has become the backbone of any new venture. There are so many start-ups today, and India has emerged as one of the growing ecosystems for start-ups; currently ranked third globally with over 77,000 start-ups, this number is growing yearly. 

Most start-ups are tech-based and have apps for better user experience, easy access to data, and increasing adoption rate of new services and products.

Most of these start-ups utilise research to get feedback on UI/UX and check what can be improved to provide a better experience and increased engagement. A few years back, researchers typically carried out these research activities at a CLT set-up with a couple of cameras. Still, now this can be done on mobile phones using another platform (app) for decoding user interaction with the app to be evaluated.

Tech has helped explore new avenues and reshape old methodologies like G.D.s, Ethnos, and diary placements. Now, online methods are used widely, and it is still to be seen whether this phenomenon will stay.

While online methods have certain limitations, like missing the human connection —one of the basics of any Qual research, there are certain aspects wherein technology is not as helpful or hasn’t yet been developed to cater to those needs in terms of tech evolution / AI.

But there are certain spheres wherein technology has worked brilliantly for multiple reasons.

India is extremely tech-friendly.

Most of the brains in the tech world are from India, and we indeed take pride in saying that. People in India are curious and open to using new technology in every sphere of their life —be it a smartwatch, smart T.V., payment apps, food ordering apps, health trackers, cab booking apps, or high-end technology like smart homes or A.I. technology. With a growing number of start-ups, a young workforce, and evolving technology, end users prefer new tools and products for better, unbiased, and faster results. However, cost efficiency is still a grey area that will also be addressed as time goes by.

Learn more about how to develop a market entry strategy for India here.

It helps understand the customer.

Marketers want to know their customers better to increase sales and saliency through precise and tailored communications. 

Brands track data to get a complete understanding of their potential customer and offer relevant products/services. This helps close the “say-do” gap, and layering this with specific Qual interactions helps in a deeper understanding of this behaviour.

It is cost-effective.

Though using technology for online interactions, mobile or digital diaries, and online communities is more economical than face-to-face interactions, other dimensions like UI/UX tools and analysis tools are still expensive, and only a few agencies offer integrated solutions. This area will undoubtedly see many innovative solutions that address issues cost-effectively in the coming years.  

It removes bias and is more credible and faster.

Using apps/ tools/ tech for capturing and analyzing data adds credibility and saves time. Respondents can upload pictures/ videos in real-time and share their stories with a broader group or in a one-to-one setting. Less human intervention removes bias, and data output can be visualised in multiple ways per the client’s requirement.   

Though there is nothing wrong with moving ahead with time, there are pros and cons of using technology for Qual research. It remains to see what else tech can add to understand human beings better, as Qual research is not just about evaluation but also about understanding the subject more deeply. Face-to-face interactions help form a temporary bond and comfort level wherein respondents share much information about themselves, their family, occupation, finances, and buying behaviour, which is a shortfall when it comes to online interactions or using any tool/tech.    

Tech can be an enabler but not a tool to understand human emotions through superficial levels. We can decode a few things like facial emotions and System I/II responses, but a deep and detailed understanding of a particular human being would always require human intervention. It is yet to be seen how much more we can do with ever-evolving technology and how it can impact the market research ecosystem. But one thing is certain: traditional Qual is here to stay as no amount of technology can completely replace human-to-human interaction and understanding, at least not in the near future.

Digitization has reset the online shopping game board, and the pandemic has accelerated technology adoption by both brands and consumers. Today, the most successful retailers have adopted technology at warp speeds. With breakthrough technology complementing every step of the retail process, where are we headed? 

Download our complete report, “The Future of Online Shopping,” to find out.

Here’s a summary of the most significant trends shaping the future of online shopping worldwide. 

Trend 1: The Future is ‘Phygital’ — Reinventing the retail experience. 

At the intersection of physical and digital is a connected retail environment where consumers are placed at the centre. In this consumer-centric, channel-agnostic, connected environment, consumers can buy online and pick up from stores.

They can try clothes and accessories virtually, in-store or online, browse large touchscreens for product information, dispense products from vending machines, and even scan an aisle in a grocery store to view an overlay of information about products. 

The future of retail is omnichannel, an approach providing customers with

 a unified shopping experience. This approach connects experiences across multiple touchpoints, including brick-and-mortar, web, and mobile apps. 

Discover how Singapore’s NTUC grocery chain increased retention and repeat business using an omnichannel approach.

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.

Online Financing Options – “Buy-Now-Pay-Later.”

Retail brands are removing barriers to make the shopping experience as frictionless as possible, including easy financing terms. 

Apps Making Online Shopping Seamless.

Mobile apps offer retailers an engaged audience they can easily connect with to sweeten their shopping experience, building loyalty and driving in-store sales. 

Download the complete report to discover how Shopee, the leading eCommerce online shopping platform in the Philippines, Taiwan, Thailand, Singapore, Malaysia, Indonesia, and Vietnam, and Sephora, a multi-brand beauty retail store, leading the way in making the shopping experience seamless. 

Trend 2: DTC brands are booming worldwide.

Direct-to-Consumer (DTC) has disrupted the eCommerce industry. As more brands manufacture, design, market, sell and ship their products directly to customers, they are more agile than traditional brick-and-mortar retailers. 

Download the complete report to learn how Nike tapped into the DTC space along with other legacy brands.

Social media advertising significantly contributes to DTC sales; however, rising ad prices damper many of these brands. 

Download our report to discover how DTC brands target users in a cookieless world. 

Also, learn how a home-grown Vietnamese DTC start-up raised USD 2.3 million in the middle of V.C. winter in the country. 

Shein, another DTC brand based in China, adopted and perfected its business model and developed a massive, vibrant, international community around Shein with a customer-centric approach. 

Download our report for the complete case study and discover how Shein has tapped into a massive international market of online fast fashion shoppers in the U.S., Europe, the Middle East, and other big consumer markets. 

Trend 3: Influencers are the new sales associates.

In a crowded digital space, where media consumption is highly democratised, brands seek attention by creating entertaining content that moves the audience. 

Consumers are now in charge — and rather than listening to brands, they listen to peer-to-peer advice on products and services. Consumers are increasingly filtering content, ads, and posts that reek of brand promotions in favour of posts and promotions from people they trust, a.k.a. Influencers. 

So who are the top Instagram influencers right now? 

Download our report to find out who owns the top spot for earnings per paid promotion, and learn how Kim Kardashian sold 150,000 bottles of perfume within minutes on a live stream in China. 

Trend 4: Personalizing the online shopping experience. 

Customers have spoken. They don’t just want personalization; they expect it from brands. 

Research shows that when brands provide personalised experiences, 80 percent of customers are more likely to purchase. When brands personalise a customer’s experience, they anticipate what they want and deliver it to them, increasing engagement, improving conversions, boosting customer loyalty, enhancing the experience, and gaining a competitive advantage. 

Download our report to find out how U.S.-based grocery chain Kroger is delighting shoppers with next-level personalization strategies in our brand case study. 

The future belongs to retail brands that master the omnichannel experience.

Consumers are tightening their purse strings due to inflation and the fear of an impending recession.

High prices of fuel and food are impacting consumer spending. It’s time for brands to get more creative, and eCommerce sellers are in a favourable position to weather the economic downturn using competitive pricing software and data-rich touchpoints. 

Download our free report to find out how top retail brands are globally navigating the new online retail playing field during these uncertain times. 

The fitness industry is rife with technology trends that have recently transformed the industry. One of the most significant digital fitness trends worldwide is the rise of fitness apps. A fitness app is an application related to health or fitness that users can download on smart devices, such as laptops, phones, and tablets. It may be accessible on the Android and iPhone operating systems. Fitness apps use artificial intelligence, machine learning, and other technologies to give users customised workout plans. 

Fitness users see tremendous value in online training because it is entertaining, provides many new opportunities and workouts, and allows them to share their experiences or compete with other app users.

Another reason for the rapid adoption of these fitness apps, which give users instructions on exercise routines, diet and nutritional programs, physical activity tracking, and other fitness and well-being-related topics, is convenience.

Apart from that, these apps provide access to real-time data, which allows users to track progress over time. Most apps provide users with an opportunity to win new training milestones. They can be used with other devices, such as a heart monitor, to offer workouts and levels and motivate users to perform just like a trainer or coach would in a live class.

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 global fitness app market was valued at USD 1.21 billion in 2021 and is projected to reach USD 5.41 billion by 2030, registering a CAGR of 18.1 percent from 2022 to 2030. 

According to the online public health resource, more than 97,000 fitness and health apps are on tablets and mobile devices (Health Works Collective). Additionally, roughly 15 percent of smartphone users between 18 and 29 have installed health apps, and approximately 52 percent access health-related information through their devices. 

According to a survey of users in the United States conducted during the third quarter of 2022, awareness of mobile fitness tracking apps reached 86 percent of respondents in the last measured quarter. Also, 34 percent of respondents actively used apps in this category.

Despite the many benefits and the convenience of working from anywhere, not everyone will transition entirely to online training. Current trends show that most people are looking for a hybrid approach and will take a class or go to the gym while also working out using a fitness app. 

Let’s examine the Sweat fitness app case study to understand what drives the fitness app market. 

Case Study: Sweat

From personal trainer to managing the biggest fitness community in the world, Sweat is a fitness app that built a community to succeed in the highly competitive fitness app market.

The Big Idea behind Sweat

Kayla Itsines, an Australian personal trainer, started a fitness business at 18 from her home in Adelaide. She soon discovered the mobile device as the perfect tool to help her clients achieve their fitness goals. She joined hands with two other personal trainers and launched Sweat: Kayla Itsines Fitness app. This resulted in a complete fitness program, the Bikini Body Guide, with two options for home and gym.

The program SELF-Post: Pregnancy with Kelsey Wells focused on new mothers and Yoga lessons with Sjana Elise Earp for a healthy body and mind. In this manner, Kayla ensured users wouldn’t sway toward other apps if Sweat could become their go-to for total body and mind well-being. 

Let’s look closely at the main strategies used to acquire valuable users and turn the app into a multi-million dollar brand. 

The idea behind the app was not how you look but how you feel. The app was built on a “try-before-buy” concept. Like many other apps, the app offers users a free trial for a week. At the end of the seven-day trial period, users must subscribe and pay a monthly fee of $19.99. Therefore, if they see results in the first seven days and feel it is a worthwhile investment, it is easy to hook them in with the free trial period. 

The app is hyper-focused on its target audience, primarily women —the branding, content, and style are all targeted toward women. 

Sharing results with before and after pictures

The app uses before and after pictures to demonstrate its effectiveness. This is what helped grow subscribers and kept bringing them back. As Kayla shared her clients’ results, she managed to retain and grow her subscriber base. By adding the other two programs to the app with Elise and Kelsey, she ensured they stayed consistent with other apps. 

Becoming an Influencer

From not knowing much about the social media landscape to make the list of most appreciated fitness trainers on Forbes, Kayla leveraged her following to grow the app organically. Her YouTube channel has a sleuth of videos that women can follow worldwide, and she currently has 412,000 subscribers. She leveraged social media to grow her subscriber base by using organic techniques to acquire new users. 

Building a community

Kayla tapped into the power of community to reach millions of women worldwide. 

Since its inception, the Sweat app has been downloaded more than 30 million times. In 2020, the app generated USD 99.5 million in revenue. Sweat’s success lies in its community-first approach, as users share before and after pictures and success stories. This, in turn, keeps other users motivated as they can see the results and believe that it can happen to them, too, if they stick with the program. 

In 2021, Kayla sold Sweat, their popular workout platform, to fitness-tech company iFit for a reported USD400 million. 

By increasing engagement, fitness apps have proved to be an excellent solution for users worldwide. These apps are also perfect for studio owners looking to supplement their regular brick-and-mortar service. 

Technology is progressively making a place for itself in fitness routines and monitoring and treating many chronic diseases.

How do you ensure your brand has its finger on the pulse of this dynamic market and constantly changing consumer preferences?

Download our full report, “Feeling Good: Powering the Next Generation of Fitness and Medtech,” report and find out how brands like Peloton, ŌURA, Noom, Headspace, and others are navigating a fiercely competitive market.

Located in the heart of mainland Southeast Asia, Thailand —officially called The Kingdom of Thailand —and formerly known as Siam, shares its borders with Liam and Combodia in the east, the Gulf of Thailand and Malaysia in the south, the Andaman Sea and Myanmar in the west; and Laos and Myanmar in the north.

The country is positioned for international market entry geographically and economically. Thailand ranks 21st out of 190 countries in the Word Bank’s 2020 Ease of Doing Business report and ranked number three according to the U.S. News & World Report on the best countries to start a business in 2022. This U.S. news and world report rankings are derived from a global survey of more than 17,000 people. They are based on respondents’ association of various countries with five particular attributes: affordable, bureaucratic, cheap manufacturing costs, connected to the rest of the world and providing easy access to capital.

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.

A Business-friendly economy

Thailand has a population of 69 million people with business-friendly policies and a growing economy. 

Thailand is well-known globally for stable economic growth, friendly international business relations, excellent incentives for foreign corporations, and a cost-effective local workforce. Owing to its proximity to some of the fastest-growing economies, like China and India, the country offers several lucrative trade opportunities with these two countries and many Asian nations. 

The standard corporate tax rate in Thailand is 20 percent —however, for companies and partnerships where paid-in capital is less than THB 5 million and income of less than THB 30 million, the first THB 300,000 in net profit is tax-free. The THB 300,000 to 3 million net profit is subject to 15 percent corporate tax. Any net profit over THB 3 million is subject to 20 percent corporate tax.

While foreigners generally can own no more than 49 percent of the shares in a Thai company, there are specific sectors where the government allows foreign companies to hold a more significant portion of the business.

Setting up a company in Thailand

Depending on your business activities, setting up a business in Thailand may require acquiring a license or permit. Certain business activities are more regulated by the Thai government, such as tourism, school, childcare, liquor, medical, and food and beverage industries. Setting up a company in these industries can be lengthy and complex. It is always a good idea to find a legal firm in Thailand to help with setting up a company in Thailand. 

Thailand is particularly suitable for manufacturing sectors. Foreign automobile brands, such as the Japan-based Toyota, Honda and Nissan and U.S.-based Ford Motors, have set up manufacturing plants in the country. These automobile brands have established their production base for exports to neighbouring countries and the rest of the world. Nissan manufactures under the Siam Motors Nissan Company, and Isuzu has two plants making pick-up trucks in Thailand. These companies have set up their export operations in Thailand. Many other brands, like the U.K.-based Marks and Spencer and Bodyshop, have also expanded into Thailand due to the lucrative market and lower start-up costs it offers, along with sound trade policies and the country’s strategic location providing access to other Asian countries. 

Many new entrants enjoy access to the Greater Mekong sub-region, where emerging markets offer the tremendous prospect of setting up a company in Thailand.

Most recently, according to the Global COVID-19 Index (GCI) report, Thailand was ranked number one in the world among countries with the highest COVID-19 recovery rate.  

What do Thai consumers want from brands?

Consumers in Thailand are price-conscious and show a preference for local brands and low-priced imported goods from the west. There is a market for brands bringing in higher-priced items, but they need a different market strategy and should work with a local partner. 

About half of Thailand’s Most-Favored-Nation (MFN) tariff schedule comprises less than five percent of duties, and nearly 30 percent of tariff lines are free. In 2020, Thailand’s average MFN applied tariff rate was 10.2 percent. However, the tariff was significantly higher for agricultural products at 29.3 percent.

Like most other foreign markets, doing business in Thailand has its share of challenges, although when you look at the big picture, these are minuscule. One crucial challenge is the language barrier. While most middle and top management can communicate fluently in English, lower-tier workers are more likely comfortable speaking Thai. 

Many Thai retailers digitised their stores to enable online shopping using data analytics to understand better the latest trends and the shift in consumer behaviour. 

The digitisation began before the pandemic but accelerated during the lockdown as it imposed restrictions in 2020. This, along with increased internet and mobile phone use, improved logistics and online payment systems, resulted in spikes in B2C and B2B eCommerce. 

According to reports, revenue in Thailand’s eCommerce market is expected to show a Compound Annual Growth Rate (CAGR 2022-2027) of 14.99 percent, resulting in a projected market volume of USD 38.72 billion by 2027.

Rising smartphone penetration (about 40 percent) has led to the growth of M-commerce —online shopping using a smartphone. The mobile commerce market is expected to grow at a CAGR of 12 percent to reach USD 25 billion by 2023. 

The Thai government’s Thailand 4.0 policy aims at allocating a specific budget for constructing a broadband network in rural areas to help bridge the digital divide, giving an impetus to the already flourishing eCommerce market. 

According to JP Morgan, using debit or credit cards is still a popular method of e-commerce payments in Thailand, and most Thai people prefer debit over credit. While cash on delivery is widely available on Thai e-commerce platforms, it is on its way to declining. 

International or cross-border e-commerce comprises almost 30 percent of the overall e-commerce market in the country. The top five e-commerce platforms are Shopee, Lazada, Kaidee, AliExpress, and Amazon. 

Want to expand to Thailand? We are consistently recognized as one of the top market research agencies globally. To learn more, go to https://kadence.com/en-us/office/thailand/ and download our agency credentials.

Indonesia is the largest economy in Southeast Asia and the third-largest democracy in the world, offering opportunities in almost every sector of the economy. With rising disposable incomes, the country’s 261 million people make it the fourth most populous country in the world. Indonesia is the seventh-largest economy by purchasing power, and a leader in ASEAN, with a growing middle class, showing an increased interest in products and services imported from abroad.

As the world’s largest Muslim-majority nation, Indonesia is culturally diverse. It has more ethnic populations, languages, and cultures than other countries. It has several ethnic groups, including Javanese, Sundanese, and others, with more than 700 recognised regional languages.

Indonesia has an important place in the world’s economy as the 24th largest goods trading partner. Goods exports totalled USD 7.4 billion, and goods imports totalled USD 20.2 billion.

The Indonesian government’s policy, abundant natural resources, and young labour force have shaped the country’s economic performance.

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.

Indonesia is the largest economy in Southeast Asia and the third-largest democracy in the world, offering opportunities in almost every sector of the economy. With rising disposable incomes, the country’s 261 million people make it the fourth most populous country in the world. Indonesia is the seventh-largest economy by purchasing power, and a leader in ASEAN, with a growing middle class, showing an increased interest in products and services imported from abroad. 

As the world’s third-largest Muslim-majority nation, Indonesia is culturally diverse. It has more ethnic populations, languages, and cultures than other countries. It has several ethnic groups, including Javanese, Sundanese, and others, with more than 700 recognised regional languages. 

Indonesia has an important place in the world’s economy as the 24th largest goods trading partner. Goods exports totalled USD 7.4 billion, and goods imports totalled USD 20.2 billion. 

The Indonesian government’s policy, abundant natural resources, and young labour force have shaped the country’s economic performance. 

The country has also been increasingly open to international trade openness over the past half-century.

For foreign companies selling directly to the government and state-owned companies, it is critical to utilise the services of local agents or distributors. At times, companies are required to use their services by law. 

In 2021, the country’s President officially launched the Online Single Submission (OSS) System, a web-based platform for issuing business licenses to facilitate micro to large entrepreneurs. The goal was to adjust the business licensing process to the level of risk and improve the ease of doing business in Indonesia. 

The government said they would continue to cut regulations that potentially hamper business and investment licensing and called for transparency between government officials and entrepreneurs for obtaining business permits. They also put memorandums in place to increase investment and national revenue and ease the flow of investment into the country. 

For foreign companies entering the country, Indonesia is a lucrative market, and these companies need to understand Indonesian culture and local consumer preferences. 

Essential factors affecting purchase decisions in Indonesia are pricing, financing, technical skills, and after-sales service. Brands entering the market should invest in training their local staff for varying levels of seniority within the company. 

Market Opportunities in Indonesia

The Indonesian consumer has been ranked the most confident in the world, and it’s a young nation with nearly 43 percent of Indonesia’s 277 million citizens under 25 years old. 

Consumer-related market opportunities continue to lead expansion in the world’s fourth-most populated country, and growth in the retail, health, education, telecom, and financial services sectors has been booming.

Indonesia’s aviation market is the second-fastest growing in the world, and a competitive and expanding banking market offers significant opportunities for IT and banking equipment, software, and technology providers. There are opportunities for telecommunication infrastructure and aircraft replacement parts and services. Telecommunications equipment, services, and satellites remain excellent areas for products and services from western markets with a relative technological advantage.

Indonesia’s under-developed public infrastructure presents opportunities in aviation, rail, ports, land transport and public utilities infrastructure projects such as water supply, wastewater systems, and waste management establishments. Emerging opportunities include palm oil, biofuel processing, clean energy, energy efficiency, and technology to improve local production capacity, dams, and waste-to-energy projects. There are opportunities for U.S. defense manufacturers to sell a range of military aircraft, vehicles, communications systems, spare parts, and maintenance services.

Education and professional training, medical equipment, and high-quality U.S. agricultural commodities maintain their edge even with higher prices.

Challenges of doing business in Indonesia

Significant challenges revolve around labour relations, intellectual property protection, and transparent rules in setting and implementing standards and certification. The Government of Indonesia has introduced plans to reduce the bureaucratic red tape to facilitate investment.

Protecting intellectual property is a crucial concern for foreign brands in Indonesia. However, in a positive development, Indonesia established a new Intellectual Property Enforcement Task Force to improve IP enforcement coordination. 

Foreign companies entering Indonesia should be mindful of additional requirements for testing and certification imposed on a range of products. 

Another issue many exporters that target public tenders find is an opaque pricing environment and local content requirements. 

Manufacturers selling goods or services through e-commerce platforms with a significant presence in the country are assessed a 10 percent value-added tax on all transactions in Indonesia. A “significant presence” is determined based on gross sales or the number of customer transactions.

Significant challenges of doing business in Indonesia are:

  • Bureaucratic inefficiency
  • Delays in land acquisition for infrastructure projects
  • Weak enforcement of contracts
  • Delays in receiving refunds for advance corporate tax overpayments

The energy and mining sectors still face significant foreign investment barriers, and all sectors need more effective IP protection and enforcement.

Despite some of these challenges, Indonesia continues to attract substantial foreign investment. According to the 2020 IMF Coordinated Direct Investment Survey, the top foreign investment sources for the country came from Singapore, the United States, the Netherlands, Japan, and China.

Private consumption drives the largest economy in ASEAN, making Indonesia a favourable destination for a wide range of brands and industries. 

Want to take your brand to Indonesia? We are consistently recognised as one of the top market research agencies globally. To learn more, go to https://kadence.com/en-us/office/indonesia/ and download our agency credentials.

Brand trust is one of the most valuable intangible assets of a company. Brand trust is meeting or exceeding consumer expectations by how well a brand delivers on its promises with its products and services. When a product fails to launch successfully, it can be costly and erode brand trust, which can take years to rebuild.

While product innovation is essential to building market share and customer satisfaction, products that fail to launch successfully can have the opposite effect, eroding market share, creating dissatisfaction, and sometimes bad press. 

For example, the US Food and Drug Administration (FDA) recently reviewed claims that pulse oximeters, the medical device that clamps onto a patient’s fingertip to measure their blood oxygen levels, can yield less accurate readings in people with darker skin tones. Medical professionals use these devices in ambulances, surgeries, emergency rooms, and hospitals worldwide, so it is alarming that these commonplace devices could be inaccurate. Thorough product testing with a diverse sample could have potentially detected this problem before launch and helped avoid the erosion of trust for these products. 

Recalling faulty, dangerous, or flawed products can cost a company millions and cost much more in lost brand trust. The most costly product recall to date is the Takata Airbag which is said to have cost USD 24 billion.

While safety, functionality, and accuracy are reasons to conduct product testing, it also analyzes a product concept or feature to determine how existing or potential customers will use or react to a product. 

Product testing is a research methodology that allows brands to collect qualitative and quantitative data about consumers’ potential consumption and usage behaviour, preferences, and reactions to a product.

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.

Product testing helps development team members measure a product’s market potential. Brands can use product testing research to determine whether a product functions as expected or whether a target audience will find value in a new product feature. Specifically, product testing helps research, marketing, product managers, and developers:

  • Gain insights: Discover valuable insights about customers’ needs and preferences, which can provide direction during development.
  • Improve products: By gathering and reviewing feedback during development, product development teams can use this information to improve products to meet customers’ expectations.
  • Save time: Product testing can help teams save time during development by identifying potential problems or risks early in the development process before launching the product to consumers.
  • Achieve business goals: Product testing helps product development teams prioritise so they can achieve key business goals, such as attracting more customers or increasing revenue.

Six common types of product testing

The type of product testing deployed can vary based on the project. Here are six common types of product testing. 

1. Concept testing

Commonly used to explore the feasibility of a product idea or concept, concept testing evaluates how the product may perform in the marketplace when launched. 

Depending on the product, concept testing often involves presentations, customer surveys, or wireframes. Concept testing can help product developers and engineers determine whether to progress to the next stage of development by evaluating responses to the idea. It can also clarify the features or functionality customers want from the product.

2. QA testing

Quality assurance (QA) testing is commonly conducted in a staged environment, where product developers test the features or functionality of a product before its public release. QA testing research teams evaluate the product using different scenarios to imitate a customer’s use. QA testing can test product updates or new features before releasing the changes to a broader audience. This type of research ensures the product works as expected and helps teams identify problems before launching the product.

3.A/B testing

With this type of product testing, product developers create two versions of a product’s feature or component and ask a research sample of customers which version they prefer. The differences in the versions may be slight, such as two different colour schemes on a product label, or they may be considerable, such as two distinct brand names. A/B testing helps product developers and engineers make design choices based on customers’ preferences. 

4. Market testing

Market testing introduces a product to customers to assess the market potential. Market testing is finding the optimal landscape, at what price point to sell, and which types of customers fit best. The product and research teams typically release the product to customers in different geographic areas and/or demographic groups, such as Gen-Z. Market testing can help product development teams measure the potential success of a product in the market. Market testing is often used to forecast product sales, plan advertising campaigns and determine effective distribution strategies.

5. User testing

User testing is research after the development team has built the product. Product development and research teams perform user studies by observing how customers interact with their products. They gather data and information based on customers’ experiences with the product to determine whether to make changes in future product releases. 

6. Regression testing

Regression testing occurs after customers have begun using the product. During regression testing, teams test the current features of a product to help them determine the features they want to add or update. While some existing features may remain, regression testing helps product development teams determine if newly added features impact the current product’s functionality.

Product testing best practices

There is rarely a one-size-fits-all when it comes to product testing. To get the most from your next (or first) product test, it is always best practice to speak with experts in the field. 

  • Use different methods: It’s helpful to use different product testing methods to provide clear direction throughout all phases of development. For example, your product development team may use concept testing to determine the viability of a product idea, A/B testing to assess its design, and QA testing to ensure the product functions as expected.
  • Refrain from making assumptions: Though it’s helpful to develop a hypothesis before product testing, refrain from making assumptions about how customers may use or react to a product. This mindset allows you to evaluate data objectively.
  • Test successful products: While it’s important to conduct product testing to identify potential problems or risks, it’s also helpful to test successful products to learn what’s already working well. Collect this data through product testing and use that information when developing future products for continued success.

Launching a new product into an existing market, releasing new features, or launching a current product to a new audience is an exciting time for a brand. Product launches come with a certain amount of risk. With the right product testing research, you can swing the pendulum in your favour, make sound strategic decisions and maximise optimal returns.