How does one go about evaluating the market for a new product? How
should pricing be determined? I'd like to be able to construct a
statement like: 1 in 10 households would want such a device if it were
X dollars. It would be great if you could provide an example based on
something like webcam sales.

The product we're developing is a technical tool (gadget) that could
be useful in many households. There are currently no similar products
on the market. (I can't give much more detail about the product at this point.)

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Request for Question Clarification by answerguru-ga on 28 Jan 2003 22:32 PST

Hi there,

I'm assuming you're after some sort of market research strategy...I
have some background in this area and I could give you some ideas on
what you could do to gain a better understanding of the demand for
your product. Is a theoretical example sufficient? I would think that
since you mentioned webcams that your product is in a similar class
and can be approach the same way from a marketing standpoint?

Thanks,
answerguru-ga

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Clarification of Question by jeffrey333-ga on 29 Jan 2003 10:08 PST

Yes, your could base your example on household products (e.g. kitchen
products) whose penetration increased rapidly as price went down. This
could be cuisinarts, microwaves, tvs etc. If you could provide links
to market research case studies, that would also be good.