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Does Customer Participation Always Benefit NPD?
Effects vary by industry, market, and stage of development process.
In a meta-analysis of 39 studies Woojung Chang and Steven Taylor investigate whether consumer involvement with new product development (NPD) is beneficial for companies. They find that the effect varies from positively affecting new product success (e.g., emerging markets, low-tech industries) to much less significant effects (e.g., high-tech industries).
In addition, the effect varies over different stages of the development process. The authors find that involving customers in the ideation and launch stages of NPD improves new product financial performance directly as well as indirectly through acceleration of time to market, but participation in the development phase slows down time to market and reduces financial performance.
Table 5 provides key findings and implications.
Download from the American Marketing Association
The Effectiveness of Customer Participation in New Product Development: A Meta-Analysis by Woojung Chang and Steven A. Taylor, Journal of Marketing (January 2016)
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