Use a Concept Test to Validate New Product Strategies.
Use weighted averages to determine the importance of product and marketing strategy components. Using the scales to measure the value of each marketing component on the questionnaire, develop averages for each sub group and a weighted average for the total group. For example, let's assume people who buy only sports cars would travel 30 miles to buy the "right" sports car while first time buyers would travel only 15 miles and the remaining general car buyers would only be willing to travel 10 miles. If the market were made of 15 % of the first group and 30% of the second group and 55 % of general automobile purchasers, then the weighted average of the travel distance would be (.15 X 30 miles) + (.3 X 15 miles) + (.55 X 10 Miles) = 14.5 miles weighted average distance the purchasing groups. If however 60% of the sales were likely to come from the general automobile purchaser market then the travel travel distance would be 9.6 miles or (.4 X 9 miles) + (.6 X 10 miles). In this case using the 30 mile distance people who only bought sports cars would be willing to travel as a guide for dealership placement would be a mistake. Moving dealerships within 9.6 miles of population centers would capture more sales.