New Product Models for Test Market Data

Abstract

This paper presents a critical review of nine models using test market data to evaluate the performance of a new brand in an inexpensive, frequently purchased product category. The models are evaluated on both theoretical criteria (e.g., the mathematical structure of the model) and on managerial dimensions (e.g., the type of sales data required and the degree of commercial acceptance of the model). Based on these criteria, three of the models are particularly useful. The paper concludes with a discussion of future directions for research in the area of test market models.