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An executive summary for managers and executive readers can be found at the end of this article.
Introduction
The fast moving consumer goods (FMCG) environment is becoming increasingly challenging in terms of innovation. As a result, the failure rate for FMCG innovation reaches 80 per cent ([15] Kotler, 2003). FMCG players acknowledge that traditional market research techniques are struggling in this fragmenting environment, and that predicting the likelihood of success by soliciting consumers' purchase "intent" is no longer reliable: what consumers say is not what shoppers do, partly because the shopping process is largely unconscious ([2] Ariely, 2008; [21] Zaltman, 2003). Industries are increasingly refocusing their efforts toward understanding what happens at the "first moment of truth" (FMOT) in store ([13] Inman et al. , 2009).
The different stages of the innovation process have been clearly identified ([6] Cooper, 2008). Market studies are available that trace progress from one stage to another and help the marketer to select concepts to be sold in stores. The stages progress from ideation and design to selection and launch. The triggers of innovation and indicators such as purchase intent that need to be measured at each stage are well known ([7] Cooper et al. , 1998; [8] Crawford and Di Benedetto, 2006; [10] Dolan, 1993). Drawing on new technologies, several market research methodologies are proposed ([9] Dahan and Hauser, 2002). To identify the decision-making processes involved in purchases the product concept can be presented in different ways that condition the shopping experience. Since more than half of purchase decisions are made in store ([13] Inman et al. , 2009), the way the product is displayed in a concept test study is important.
Testing a product in a virtual store is of particular interest because real prototypes are not needed and the product can be presented within its competitive environment ([4] Burke, 1996). The question is whether the indicators measured in a virtual store fit with the one measured with the traditional and improved concept test methodologies. To answer that question the present research compares the results of a concept test conducted using a traditional methodology with those obtained using a virtual store.
The FMCG innovation process is presented as are the main methodologies used to test innovation. Following this,...