Demand for current and new wool testing services : a market orientated evaluation and design approach

Abstract

Research was conducted to provide market based information to the New Zealand Wool Testing Authority, relating to the provision of testing services and the introduction of a new length test for wool.

The market perceptions and preferences for test services were examined, along with the competitive performance of the New Zealand Wool Testing Authority. The wool test market was segmented and purchase decision making examined. Length test attribute market preference information was provided to guide test design, along with a forecast of length test sales to assist economic evaluation and capacity decisions.

The Choffray and Lilien industrial market sales analysis model was used in a modified form to forecast length test sales. Conjoint analysis was employed to analyse length test demand. Other consumer market-based techniques used included cross tabulation of variables, intention to purchase translation and adoption forecasting.

Accuracy and speed of testing were the most important test service attributes. The New Zealand Wool Testing Authority was favourably perceived on the attributes: managers; technical service; and accuracy. On speed of testing performance was perceived less favourably. The New Zealand Wool Testing Authority maintained a preference advantage over the competitor, although this preference was reversed for the woolscour market segment.

Test house decision making systems were found to vary between segments. Some perceptions and preferences also differed between market segments. The market showed the greatest length test preference for high accuracy, with low charge more important to wool brokers than exporters. A fast test was of less importance. Utility was determined for actual levels of these features. Sales of 15,200 length tests were forecast in the year of introduction. Length test unit sales were forecast to increase to about 87,400 over five year’s market adoption.