Simulated test marketing : its evolution and current state in the industry

Abstract

Simulated test markets are powerful tools that are used frequently to aid marketing managers in making a go/no-go decision before bringing a product to test market. Over the past twenty years, STMs have expanded beyond application in fast-moving consumer goods to industries such as financial services, pharmaceuticals, durables, and new technology. Today, the STM industry is fairly consolidated, with models that are in principal, very similar, whether they are based in purchase intent or share of preference. However, the major vendors discussed here are able to differentiate and position themselves through additional diagnostics and customized services. Advances in data collection and incremental refinements to STM models are presented in addition to challenges that the STM industry currently faces.