A Cool Research Methodology That I Predict You Will Use

As my colleagues in our team can attest, I get giddy when I talk about all the cool, emerging, and innovative methods that market research professionals can use — whether it be how biometric techniques helped the Campbell Soup Company understand how consumers respond to marketing and advertising in order to redesign its soup-can logo, or when Nokia used mobile research methods as a way to understand what emotional constructs influence a consumer’s “love and admiration” for a brand. All in all, it is great to see technology starting to make a significant impact on how we collect richer insights about consumers.

To help market research professionals understand what innovative research techniques are out there, I am launching a report series this year that will cover some of these innovative methods. To kick off the series, I have focused on prediction markets. Why? Because I see this extremely underutilized method as a valuable tool in the long, expensive, and arduous process of product and concept testing.

 Companies are faced with the following daunting facts:

  • Over 25,000 new consumer products skus are introduced annually in North America with only half of these new product launches considered successful at launch.
  • For every seven product ideas that are created, typically only one succeeds in the market.
  • An estimated 46% of all resources allocated to product development and commercialization is spent on products that are cancelled or that fail to yield an adequate financial return.
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