Republic of the Philippines

Department of Education
REGION I
SCHOOLS DIVISION OF CANDON CITY
Candon City, Ilocos Sur

Business Enterprise Simulation-12

Quarter 3 (Week 3-4) – Module 2
Prepared by: Sadiri Mat T. del Rosario

Lesson
Product Survey
1
I. Objectives:
1. Identify appropriate research methodology for product demand and acceptability
(ABM_BES12-Ia-c-3);
2. Conduct product research survey and data processing; and
3. Draw conclusions and formulate recommendations (ABM_BES12-Ia-c-4)
II. Guide Questions:
1. What is a product survey?
2. How do you conduct a product survey for demand and market acceptability?
3. How do you construct conclusions and formulate recommendations?
III. Discussion:
After you have identified what feasible product that you will propose to your target
market, as a way of introducing your identified business opportunity potential, you are now
ready to expand further your verifications directly from the viewpoint of your potential
customers. You now have to target the respondents’ views on your product concept. This
is referred to, more specifically, as a product survey.
A. Product surveys
Product surveys are done in order to have a knowledge of the reception of a newly
introduced product in the market by potential customers. Before you launch your product,
you must have a clear indication that it will be patronized even from the outset. The purpose
of the product survey is appropriate in the initial screening of new product concepts. Likes
and dislikes about the concept and evaluation of acceptability and likelihood of purchase
(or, what you call ‘demand’) are especially useful measures.

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 In conducting your product survey, you are actually validating whether your
product concept is just a piece of a crazy, junk imagination that you have or, a slum dunk,
bull’s- eye, talk-of-the-town business innovation. The result of this survey tells about your
customer’s first say. In surveying your target market, you will find-out whether:
….you are solving a real problem
…your idea is a clear winner
…your concept has appealing features
…or, most importantly, your product will sell.
Again, go over what you have already done in module 1 and be sure to have
concrete answers on the following areas after you have gathered your data:
1. Market assessment - Does the market need your product? Who is the ideal customer?
How large is the sales opportunity?
2. Product ideation - What features of your product are necessary and what would make
your product stand out?
3. Product testing – In showing your prototypes and mockups to potential customers,
which version they are more likely to buy... and why?
4. Package testing and shelf testing - What design and packaging of your product also
resonate with your customers?
5. Price testing – What price is too high for your customers? What's so low that they'd
doubt your product's quality?

B. Constructing Your Set of Questions Using Likert Scale

You may start constructing sets of questions based on those above-mentioned areas but
first, you must design your survey questionnaire which are answerable using a “scale”. A
“scale” is one good way of achieving easy, convenient responses that can be highly reliable.
What is a survey scale in the first place? A survey scale follows a set of answer options –
either numeric or verbal – that cover a range of opinions on a topic. A Likert scale (named
after their creator, American social scientist Rensis Likert) are quite popular survey scale
because they are one of the most reliable ways to measure opinions, perceptions, and
behaviors. Using a 5 or 7 point scale, sometimes referred to as a satisfaction scale, it
represents a range from one extreme attitude to another.
Typically, the Likert survey question includes a moderate or neutral option in its scale.
Compared to binary questions, which give you only two answer options, Likert-type
questions will get you more granular feedback about whether your product was just “good

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 enough” or (hopefully) “excellent.” This method will let you uncover degrees of opinion
that could make a real difference in understanding the feedback you’re getting. And it can
also pinpoint the areas where you might want to improve your service or product. Different
questions may be raised that answers a wide-range of data to address the demand and
market acceptability of your proposed product. Try to match the scales with your questions.

C. Mode of Gathering Data

As discussed in your previous module, constructing a survey questionnaire would
be the best thing you can do to acquire data from your potential customers’ perspective about
the proposed business product you have in mind. There is more than one way of gathering
your data using your set of questionnaire. With the many restriction protocols limiting face-
to-face interviews today, you can float your survey by employing it as online survey, paper
survey, or mobile/ phone survey. Online surveys and mobile surveys can be more cost
effective.

D. Pre-testing Your Survey Questionnaire

You, being the researcher, can “pre-test” the data-collection instrument to gauge its
suitability. During the pre-test, use a survey or the specific data-collection instrument to
test people who are similar in age, education and knowledge of your respective market to
the actual customer or sample subject. Pre-test participants must complete the instrument
in the same manner as actual sample subjects. For example, if a data-collection instrument
requires a telephone survey, the pre-test participants must take the pre-test over the phone.
If online, use an electronic survey. After completion, you should ask the test group if there
were any questions or instructions that were unclear or unnecessary to determine if a
category or question requires revision or removal.

E. Sample Size and Design

Quality within the sample size is more important than the quantity of the sample
size. The goal of data sampling is to obtain answers from representatives of an entire
population of interest, not amass a large sample size. When selecting which candidates to
use in the sample, researchers can use a variety of sampling methods. Primary sampling
methods include random sampling -- a stratified sampling method -- where individuals are
chosen based on shared characteristics; an area sampling, where individuals are selected

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 according to specific locations, or quota sampling, where individuals are chosen out of
specific subgroups.

F. Data Analysis, Conclusions and Recommendations

Data analysis consists of recording and summarizing the responses for each
question or observation for every participant. Summary calculations such as determining
the most frequent answer or average answer can provide an overview of the survey
information. Advanced calculations and statistical tests, which vary according to the
sampling method used to obtain data, can provide additional insight, such as the difference
in answers given by two different respondents. Finally, process and analyze results.
Advanced survey software solutions have built-in analysis capabilities. Analyze survey
data with tables, charts, graphs, cross tabulations, and more advanced analysis
functionality.
In constructing your conclusion, be sure that it directly answers your assumptions,
confirming them or negating them. Try to be specific with all the details of what you want
to prove: whether you push through with your product concept or not. Out of this comes
what you will state as your recommendation.

IV. Examples
A Sample Questionnaire Using Likert Scale
For example, if you are thinking of a “halo-halo” business, you might want to know
first if your product is needed or is there a sales opportunity (product demand). So, you ask
this question:
“If you hear the word “halo-halo”, which of the following describes your feeling?”
(Then, construct possible responses following a Likert survey scale like the following)
Crave so much (it’s mouth-watering)
Like it somewhat (very discriminating)
Not much of a fan (don’t care)
Dislike it somewhat (not so enjoyable)
Dislike it very much (hate it)
You may proceed with later questions which specifically describe the features
of your product (product elements/ ingredients, packaging/ presentations, etc.) to solicit
responses whether the product concept appeals or not to the respondent.

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 Some key metrics you might want to include in your questionnaire are the following:

• Appeal: Is your product enticing to potential customers?

• Believability: Is your product’s messaging believable?

• Innovativeness: Is your product innovative?

• Purchase intent: Do people want to buy your product?

• Quality: Does your product seem high quality?

• Relevance: Does your product fulfill your audience’s needs and wants?

• Uniqueness: Is your product different from other products?

For further knowledge of this, you may download a free product research survey
template.at this website: https://www.qualtrics.com/marketplace/product-research-
survey/

V. Generalization
The best research methodology in order to have a knowledge of the reception
of your potential customers for your proposed product in the market is by means of a
product survey. In constructing your survey research tool, it is best to use the Likert scale
of questioning where you have 5 or 7 point satisfaction scale. In gathering your data, online
surveys and mobile surveys can be more cost effective and safer than paper or face-to-face
interviews. Pre-testing your survey tool is a must protocol in order to know if there are
areas in your questioning that you need to improve. In choosing the sample size and design,
always remember that quality within the sample size is more important than the quantity of
the sample size. In order to formulate your conclusions and recommendations, there should
be a proper analysis of your gathered data through recording and summarizing the
responses for each question or observation for every participant. Using tables, charts,
graphs, cross tabulations, and more advanced functionality are effective tools for analysis.

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V. Exercise Sheet
(Use a separate clean sheet of paper as an answer sheet)
A. Multiple Choice. Choose the letter of the correct answer and write on the blank before each
number.
____1. What is referred to as a form of research to verify the demand and acceptability of a
proposed product?
a. Market acceptability c. Product demand
b. Market research d. Product survey
____2. What is the phrase “acceptability and likelihood of purchase” in a single word
description?
a. demand b. fondness c. liking d. preference
____3. What is one method of a survey scale that will let you uncover degrees of opinion that
could make a real difference in understanding the feedback you’re getting rather than
just a binary set of questioning?
a. Feedback scale c. Liking scale
b. Likert scale d. Opinion scale
____4. What is generally described as a 5 or 7 point scaling contained in a Likert scale?
a. Satisfaction scale c. Diversified scale
b. Multiple scale d. Granular feedback
____5. What is the safest and most cost-effective method of gathering data in this pandemic
times?
a. Face-to-face interviews c. Online
b. Observation technique d. Paper survey

B. Identification (items 6-10).

Direction: The given pool of choices below are research areas that have to be covered during
a product research survey in order to determine demand and market acceptability. Identify
which area is being covered by each of the statements on item 6 – 10. Put the letter of your
choice in the blank before the number.
a. Market assessment c. Package testing and self-testing
b. Price Testing d. Product ideation
e. Product testing

____ 6. This is to show to your customers which among the prototypes or mock-up versions of
your product will they likely buy and the reason why they will buy it.
____ 7. This is to determine what’s too high that your customers will not be able to afford and
what’s too low that they’d doubt the quality of your product.
____ 8. This is to identify the scope of your product demand whether it is large enough to
create a sales opportunity or not.
____ 9. This is to ascertain what design of your product will appeal to your customers.
____ 10. This is to recognize what exactly will make your product stand out.

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V. References
Websites:
“Market Research.” Small Business Development Corporation. Retrieved February 20, 2021
from https://www.smallbusiness.wa.gov.au/business-advice/marketing/marketing-
research#:~:text=Market%20research%20is%20an%20effective,what%20your%20compe
tition%2
Yesbeck, Jennifer. n.d. blog.alexa.com. Accessed February 20, 2020.
https://blog.alexa.com/types-of-market-segmentation/.

VI. Answer Key

10. d 5. c
9. c 4. a
8. a 3. b
7. b 2. a
6. e 1. d

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