Definition
Before committing to launch a new product or service formally and publicly on a large scale, test it in a smaller, more private and informal context to see if people are interested in it.
Example
BestBuy pitched a tent in one of their store parking lots and advertised locally for a new service (tentatively named NextPlay) to see if people would be interested in swapping old electronic gear in exchange for store coupons. It worked, and the service is now available in all stores (and not in tents!).
Resources
Exponentially Platform: helps you work out which ideas you should invest in, by tracking your experiments and using data to tell you what will work.