Until making a substantial investment in development, marketers use concept testing to decide which new product concepts are worth pursuing.

In concept testing analysis, there are a few things to bear in mind. Discuss each of the factors to consider when evaluating the new product concept that Ellen and Ali have been looking at recently, as mentioned in the case (the new inexpensive digital video surveillance system).

Logitech makes a number of computer peripherals, including mice, keyboards, headphones, and webcams, as well as tablet and smartphone accessories. It has also entered the home security market with the acquisition of WiLife, a company formed by two entrepreneurs in 2002. At the time of purchase, WiLife products were renamed Logitech Alert products. Under the Logitech brand, the home protection product line has been significantly improved and extended, and now includes state-of-the-art indoor and outdoor solutions with nightvision and high-definition-resolution images. This case examines the two entrepreneurs' creation of the WiLife business and how they progressed from identifying an opportunity and developing a successful idea to launching their first marketable product.

When Ellen Tree founded WiLife, Inc. in 2002, he had nearly two decades of experience as a video surveillance dealer-installer. Ali Hartsfield, his business partner, had previous entrepreneurial experience, most recently in the liquor industry. Ellen had been the owner of a local protection company, Double Tree Security, for about ten years and had recently sold it to a nationwide concern. Ellen background in video surveillance showed that there was a significant gap in the market. Although the most simple video monitoring device currently available on the market will cost upwards of $4,000. Big security companies like Honeywell or ADT usually sold these to business owners through dealer-operators like Double Tree. Not only was the price prohibitive, but running wires and mounting cameras was difficult work, and monitoring from a central location would necessitate a dedicated computer. The significant investment will be made by major consumers or those with specific surveillance requirements, such as jewellery stores or pharmacies. However, the majority of small business owners thought the cost of video monitoring was prohibitively expensive. Ellen and Ali saw that a lightweight, low-cost video surveillance system would address a real market need for small businesses. The two partners started to consider the business demand as well as the technological and commercial factors that would determine success.

On the technical side, the existing systems' shortcomings are a good place to start. Analog cameras were used in the systems available at the time. For this application, it would make sense to look into digital cameras, particularly since the costs are unlikely to be prohibitive. Digital video clips may be submitted to a device or even a smartphone with video capabilities. It's also a good idea to investigate Ethernet networking as a way to connect the cameras to the PC. This is a popular and readily available technology that eliminates the need for new wiring by using the building's existing electrical power lines. The preservation of video images for inspection by business owners or the police (in the case of a break-in captured on tape, for example) would then be appropriate. Images captured by analogue cameras are currently videotaped, and the tapes are often reused after a certain amount of weeks; this may be a good starting point for storage needs. The picture quality would have to be decent, and adding digital time stamps for easy replay and searching would be a pleasant feature. Though Ellen and Ali initially considered only in-store surveillance, the idea could be extended to include external cameras as well, though this would present additional technological challenges (making the cameras waterproof, for example, or using infrared technology so the camera can see in the dark). There are obvious commercial considerations here as well, the most relevant of which is price. If the cost of video surveillance systems was not so high, it is almost assured that more small businesses will purchase them. There are, however, non-price factors to consider. As previously stated, sending digital images to a user's PC or phone should be technologically possible; consumers should appreciate this because it removes the need for a dedicated PC. Furthermore, the device may be "smart," sending a warning message to the user's PC or phone if there is any suspicious activity. (It should be able to tell the difference between a burglar smashing a window and a cat sitting on the windowsill if it's very smart.) Having a team out to mount video cameras is often time-consuming and disruptive; ease of camera installation should be taken into account. Similarly, installing the required software on the PC should be easy.