Effective factors for estimating market share in concept testing

Abstract

For many departments, evidence of concept effectiveness is indispensable in aligning the concepts that serve as the basis for decision-making. The method used for that purpose is concept testing. However, due to the high degree of confidentiality, practitioners have a negative attitude toward information disclosure regarding concept testing. Hence, there is a lack of academic research on the factors improving the quality of concept testing. Therefore, this study sought to examine the factors that improve the estimation accuracy of concept testing for the market share of hairdryers and personal computers in the Japanese market. As a result of randomized controlled trials, we find that a corporate brand is the most effective factor in improving the estimation accuracy of the market share. Hence, it can be inferred that even if a concept is good, it is difficult for consumers to express their intentions when the provider is unknown.