A Model for estimating the potential demand of high touch product

Business firms have to carry out the product development activities continuously to maintain competitiveness. In case of launching a new product to the market, some quantitative estimation assessing the potential demands of the new product is needed A systematic methodolgy that estimates the amount of potential demand is developed in this study. This methodolgy has been used in High Touch process developed by the first author. The estimation model includes : (1)segmentation of potential user group based on demographic characteristics, (2) calculation of the relative variation of purchasing power using the AHP (Analytic Hierarchy Process) technique and (3)estimation of the potential market size. Finally, some new product functions developed in 1994 was analyzed using the model, and the result was compared with Korean market data of 1993.