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.