Concept testing of Internet services

Studies conducted both in Europe and the USA have consistently suggested that new product development is vitally important for a company’s long‐term survival. However, it is a risky and uncertain business. Previous studies have indicated that early new product development activities such as concept testing can be instrumental in reducing the risks and uncertainties associated with new products. This paper explores whether a widely used concept testing method can be used to evaluate new Internet initiatives. It presents an empirical study based on a longitudinal survey that involves both the initial predictions and the actual results for two Internet services and shows that concept testing can be a useful tool for companies to evaluate their new Internet services. The paper also provides managerial and research implications.