Concept Development Method Using Orthogonal Arrays

Concepts are rarely treated as objects of scientific verification because of the high level of confidentiality within companies and their subjective nature. Most of the limited literature focuses on concept testing and there is very little knowledge about concept development. Consequently, concept development relies on individual skills and low reproducibility has become a problem for corporate marketing departments. Therefore, we propose a new approach that applying orthogonal arrays, which have been used for objective technical specifications and quality control, to concepts that tend to be subjective. Using the Japanese green tea market as a model, we constructed nine concepts based on an orthogonal array with four attributes: concept, flavor, function, and brand location. The conjoint analysis revealed that authentic green tea products are more desirable than homemade products, and that products with healthful functions are more desirable. Companies should move away from individualistic concept development and adopt this study’s approach to elevate organizational capabilities.