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STEP (Strategy Evaluation Program)
STEP is a controlled simulated test market conducted within the context of a questionnaire. Each potential customer is exposed to a simulated marketplace with a realistic array of competitive products or service offerings. The respondent uses a special rating scale similar to the purchasing process. Randomly equivalent groups of respondents are exposed to different marketing strategies for your product(s). We measure changes in your potential sales level as a function of each strategy you wish to explore.
How you can use STEP
New Products and Line Extensions
  • assessing sales potential
  • assessing cannibalization and source of competitive volume
  • impact of price on volume and profit potential
  • impact of alternative names, model numbers, etc.
  • impact of alternative value propositions or advertising strategies
Current Products
  • impact of price increase or decrease on volume and profit potential
  • impact of product modifications on sales potential
  • impact of alternative re-staging or positioning strategies
  • assessing vulnerability to new competitive activity
  • impact of alternative ad strategies and executions on sales potential
  • impact of alternative bundling strategies
Brand Equity
  • incremental sales value of your name in current categories
  • value of your name in new categories
  • incremental sales benefit of bundling your product with those of other companies
Read about STEP in "The Laws of Choice: Predicting Customer Behavior," chapters 4 to 11.
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