THE IMPORTANCE OF MARKET VALIDATION
The competition between product and services that occur in business world in the modern era is increasingly tight. This can be seen from various ways of promotion that run by the company to win its consumer heart.
Before deciding to jump into the competition, it is important for business to do some market research at the beginning because it will relates to how much the spending cost that will be invested for their new product.
Market research will help companies to search, collect and analyze information about their target markets. Who is the target market and how the desired position in the minds of consumers later The results of market research will also help the company management in the next strategic decision making.
“Research is to see what everybody else has seen, and to think what nobody else has thought.”
BINUS experts team help OCBC NISP Bank to do market research for a new product concept an of course the aims of the research are :
- Validating acceptance of potential customers
- To estimate market size
- Identifying the opportunities or others potential
- Analyzing product/ service feasibility
- Recommendation of the next steps
This market research takes approximately 5 (five) months starting from September 2017 until January 2018.
This research respondents are segmented into middle class economy, high income, certain ethnicity, having a minimum senior high school degree, and have plans in the next 4 (four) years to get a better life.
Data collection of respondents conducted by qualitatively and quantitatively. Qualitative is done by Forum Group Discussion (FDG) and In Depth Interview (IDI) approach. Quantitative is done by a closed Questionnaire survey approach.
Forum Group Discussion (FGD) was conducted to 8 groups of respondents in Jakarta and Medan. In Depth Interview (IDI) was conducted to 60 respondents in Jakarta, Medan, Makassar while the questionnaire survey was distributed to 750 respondents in Jakarta, Surabaya, Bandung, Medan, Makassar.
Conjoint analysis is used in helping to process the data collected. Conjoint analysis is a multivariate analysis technique developed specifically to understand how respondents develop preferences for all types of objects (products, services, or ideas).
Green and Krieger (1991) say that conjoint analysis can be used to:
- Designing prices
- Predict the level of sale or use of the product (market share)
- Test new product concepts
- Preference segmentation
- Design a promotional strategy
The results of the study concluded that the products / services to be offered are considered good, interesting, useful and considered as one solution to help the people of Indonesia. However, respondents in some cities were less interested in using the products / services offered due to some considerations and concerns.
The results also provide recommendations:
- Target market can be started in Jakarta and Surabaya
- Avoid the areas of Medan and Makassar
- The customer network can be used as a distribution channel
- Provide additional features as an added value