Pretest Market Models: A Critical Evaluation

Abstract

Pretest marketing models are increasingly being used by consumer products firms for evaluating new products prior to test market. The reasons for this are many, but include considerations of cost, risk, and fear of premature competitive disclosure. Allan Shocker and William Hall discuss the concept of a pretest market and assess its value. They contrast and critically evaluate four of the most frequently used models for projecting pretest market results. The strengths and limits of these models complement each other and provide useful additions to available methods for predicting new product performance and for refining marketing plans prior to test marketing.