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Product Testing
Product testing is, perhaps, the single most important type of consumer research any company ever conducts. A company with consistently superior products tends to consistently outperform its competitors in the marketplace.

Achieving clear-cut product superiority in a category is the surest way to build brand share, engender customer loyalty, and boost profitability. Better products tend to command higher prices and be more responsive to advertising investments.

Our Product-Testing Philosophy

Consumer tastes and preferences evolve over time. The consumer's palate is a moving target. That's why product testing must be viewed as a strategic, ongoing activity.

"Real environment" testing (i.e., testing a product the way it is typically used by consumers) is almost always the most accurate method of product evaluation. For example, it is generally best to let consumers evaluate food products in their homes rather than in a laboratory or test kitchen.

Products should be tested using a standardized system, so that each product is tested in exactly the same way. Our standardized system is Optima®.

Optima® Product Testing

Optima® is Decision Analyst's proprietary, copyrighted product testing system. The Optima® questionnaire consists of the following modules:

  • Screening/Qualification Questions
  • Overall Rating of Product
  • Like Most About Product
  • Suggested Product Improvements
  • Diagnostic Ratings of Product Attributes
  • Ratings of Product Components
  • Intent to Buy Product, Priced
  • Expected Frequency of Purchase
  • Value Rating
  • Demographics

How Does Optima® Work?

Typically, a representative sample of category users (150 to 200 households) is given a test product to use in-home for a few days. Then these consumers are asked a series of standard questions about the product.

Based on internal diagnostics, normative data, and analytical models, these questions tell us whether the product is optimal or not, and indicate what needs to be changed to improve the product. Our primary analytic model is Pii®.

Product Improvement Index® (Pii®)

Decision Analyst developed the Pii® mathematical model to help guide product development efforts for new products and the reformulation of existing products. Pii®was developed primarily because of problems encountered in using various types of regression models in product-testing analyses. Regression models assume that all of the input variables are independent (i.e., not intercorrelated in any way).

The reality is, however, that virtually all of the input variables that might explain a product's performance are typically intercorrelated. The result is a regression equation that omits important input variables. For example, if the color and the sweetness of a product happened to be highly correlated with each other, the regression equation would omit one of the variables. We might think we had a color problem, when in fact we had a color and a sweetness problem.

The Pii® model was designed to circumvent the "missing variables" problem associated with regression. This model is based upon a type of correlation, using "dummy" variables, to examine the relationship between the diagnostic ratings (e.g., too sweet, about right, not sweet enough; or too much salt, about right, not enough salt; and so on) and the consumer's overall rating of the product. The overall rating is typically measured with an 11-point scale.

The output of the Pii® model is a table of important explanatory variables along with the Pii® rating and the indicated action, as illustrated here.

Diagnostic Variable Pii® Score Indicated Action
Too sweet 18.65 Reduce sweetness
Too dark in color 14.72 Make product lighter
Too soft 12.95 Make product firmer
Not enough salt 9.48 Add some salt
Not enough crunch 5.23 Make product crunchier

Generally, any Pii® score greater than 4.0 indicates that some modification of the product might be necessary. The greater the Pii® score, the more important that variable is and the more that variable should be modified.

Optima® Uses

The great value of Optima® is illustrated by its many uses:

  • To evaluate and improve existing products.
  • To achieve product superiority over competitive products.
  • To continuously improve product performance and customer satisfaction over time (i.e., to optimize products).
  • To evaluate cost-reduction formulations while maintaining product superiority.
  • To measure the effects of aging upon product quality (shelf-life studies).
  • To provide guidance to R&D in developing or upgrading products.
  • To monitor product quality from different suppliers and/or different factories.
  • To implicitly measure marketing variables (i.e., packaging, pricing, sizing, etc.).
  • To predict the success of new products.

Optima® Features

The essential features of Optima® are:

  • Monadic Design-Each product is tested alone. This provides the most accurate evaluation of the product and the best diagnostic feedback about how to improve the product.
  • Standardized Systems-The sampling, data collection, data preparation, and data tabulation methods and procedures (i.e., the system) are standardized for each product. It is essential that every product be tested in precisely the same way.
  • Standardized Questions-The standardized questionnaire is modular in structure and flexible in design. All of the questionnaire modules are copyrighted by Decision Analyst.

Sampling Options

The recommended sample source for most product tests is American Consumer Opinion® Online. This Decision Analyst panel of over 7 million online consumers is an economical way to screen for low-incidence product categories, and it provides high quality data and fast turnaround at the conclusion of each product test.

Other sampling options include mall-intercept, recruit to central location, or telephone recruitment. In-store or on-site product testing is also an option.

Non-Food Product Testing

The concepts, methods, and techniques of product testing can be adapted and applied to almost any product category. Our staff has evaluated:

  • Microwave Ovens
  • Washing Machines
  • Airliner Seats
  • Retail Store Layouts
  • Restaurant Interiors
  • Calculators
  • Hotel Rooms
  • Computers
  • Software
  • Cellular Phones
  • Pagers

Additional Resources from Decision Analyst

If you would like more information on Optima® Product Testing, please contact Jerry W. Thomas by email or call 1.800.ANALYSIS (262.5974).

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