Product optimization research is a form of concept testing, in which we are identify the mix of features and individual benefits that maximize customer interest. Optimization research generally works best in categories with features and benefits that are clear and easily understood, or that are driven by performance, as compared to categories that are more image-driven.
A diversified hand tool company head invented a set of attachments that could be used in combination with a power drill. The attachments would convert the rotational movement of the drill bit into either a reciprocating motion or a cutting motion. One of the particular attachments required input from contractors and builders in order to better refine the product design, as well as identify a range of possible prices that would be acceptable to the buyer. Research was used to identify relevant competitors, but perceived benefits of existing products, and the specific superior features of this new concept. In addition, pricing sensitivity analysis was conducted in order to target a price point that was significantly higher than what was initially considered. As a result, the company was able to introduce the product at a higher price point and not leave money on the table.
A global manufacturer of optical equipment he is also a major player in the medical field. Specifically, this company manufacturers cleaning machines for medical equipment known as reprocessors. Reprocessors are used in GI laboratories for endoscopic procedures, and they may come with various features and characteristics, but not all of them are equally desirable. Further, the inclusion of these particular features include a cost component, so the most desirable features are often the most expensive. Optimization research was conducted among gastrointestinal nurses who are typically managers of these lab areas, to determine the kinds of features and the tradeoffs they are willing to make between them. In the end, the optimal set of features was identified and the manufacturer then altered its product configuration and optimal price for the medical market.
