Pretest Market Models
Part 5. Product Innovation and Management
Published Online: 15 DEC 2010
Copyright © 2011 John Wiley & Sons, Ltd. All rights reserved.
Wiley International Encyclopedia of Marketing
How to Cite
Di Benedetto, C. A. 2010. Pretest Market Models. Wiley International Encyclopedia of Marketing. 5.
- Published Online: 15 DEC 2010
A manager, planning to commercialize a new product, requires market information to decide whether to launch the product and to make marketing-mix decisions. Full-scale test markets, in which the product is sold under real conditions for a length of time, are costly and risky. Many managers will begin with a pretest market method to obtain good quality information from customers in a relatively short period of time and at much lower cost. The pretest market filters out likely failures and allows the manager to focus on better market opportunities. While there are several variants, a typical pretest market involves simulating the customer's purchase behavior in a controlled setting. The customer usually takes the product home for trial, and likely repeat purchase rates are assessed. Here, we profile ASSESSOR and BASES, two of the most popular pretest market procedures. We conclude with a discussion of some of the newest trends in pretest markets, including the use of information acceleration in the forecasting of big-ticket items such as automobiles, and a mention of the most common criticisms of pretest markets.
- pretest market models;
- awareness–trial–repeat model;
- information acceleration;