Managers are well aware of the importance of product innovativeness and speed to market, and more of them are bringing OEM customers (original equipment manufacturer) into the NPD process (new product development) to achieve these objectives. However, the involvement of OEM customers in the NPD processes may not always lead to desirable outcomes. In certain situations, customer participation can even impede new product innovativeness and/or speed to market. If downstream retailers and distributors are so highly connected that they all know one another and communicate regularly, bringing the OEM customer into the development process is likely to speed it up because the OEM customer can access market information more quickly. However, managers need to be wary of the type of information transferred into the NPD process in this scenario because that information may be redundant and fail to reflect the diverse nature of market needs and preferences. This type of information input even may limit the innovativeness of the developed component. In addition, the decision to include OEM customers in a significant portion of the development tasks carries certain benefit-risk trade-offs. Specifically, if the nature of the development requires a high level of interaction and coordination across different stages, a significant OEM customer role is likely to lead to product innovativeness but delay the development process because of its high coordination burdens.


    Access

    Access via TIB

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Customer participation and the trade-off between new product innovativeness and speed to market


    Contributors:
    Fang, Eric (author)

    Published in:

    Journal of Marketing ; 72 , 4 ; 90-104


    Publication date :

    2008


    Size :

    15 Seiten, 2 Bilder, 2 Tabellen, 83 Quellen




    Type of media :

    Article (Journal)


    Type of material :

    Print


    Language :

    English




    Value Streaming Through Customer Participation in Product Realization

    El-Sayed, Mohamed | British Library Conference Proceedings | 2016


    Value Streaming Through Customer Participation in Product Realization

    El-Sayed, Mohamed | SAE Technical Papers | 2016


    Innovate or game over? Examining effects of product innovativeness on video game success

    Handrich, Franziska / Heidenreich, Sven / Kraemer, Tobias | Online Contents | 2022

    Free access

    Ion Exchanger for Fuel Cell Coolant Loop as Customer Independent Market Product

    Leininger, Simon / Wildermuth, Andreas / Bublinski, Martin et al. | TIBKAT | 2021


    Ion Exchanger for Fuel Cell Coolant Loop as Customer Independent Market Product

    Leininger, Simon / Wildermuth, Andreas / Bublinski, Martin et al. | Springer Verlag | 2021