Do we overestimate the potential of innovations?

Traditional market research tends to overestimate the potential of innovations. That is bad news for those who rely on the research for their business plan. To solve this problem, the MICT research group at Ghent University developed the Adoption Potential Analysis methodology. It provides a definitive answer regarding an innovationŽs true potential.

"Similar to traditional market research, we use questionnaires to assess the consumerŽs interest," says Lieven De Marez of Ghent University. "But when it concerns innovative products, many more aspects come into play. Pricing, product configuration, and compatibility with existing technologies play a primary role in shaping an innovationŽs success."

Input for marketing and product development

Such underlying motives surface during personal interviews. Lieven De Marez: "Among other things, we ask consumers to specify in which situations they are most likely to use the product and what price they are willing to pay. We also present them with various product configurations at different prices. This enables us to assess which combinations offer the best recipe for success. This essential input is particularly valuable for further product development and a successful marketing strategy."

Backing the right horse

In 2004, the new methodology was used to assess the potential of digital television in Flanders. Telenet adopted the research results with significant success. Focusing on the features that the respondents deemed the most important - in this case being able to view previously broadcast programs - the company built a significant lead over its main competitor Belgacom, who focused on its football offering and hence addressed a smaller segment. "The predictions we made in 2004 regarding the evolution of the market still apply today," stresses Lieven De Marez.

Contact information:

Lieven De Marez, PhD
Dept. of Communication Sciences - MICT
Korte Meer 7-9-11
B-9000 Gent - Belgium
T: +32 9 264 68 85
F: +32 9 264 69 92
www.mict.be