TY - CHAP
T1 - Consumer-Oriented New Product Development
AU - Grunert, K.G.
AU - van Trijp, J.C.M.
N1 - doi werkt niet; gemeld dd 18-8-2014 (url tot die tijd weggehaald)
PY - 2014
Y1 - 2014
N2 - Introduction
For most companies, the introduction of successful new
products is critical to the achievement of the short- and longterm
corporate strategic goals of profitability, growth, and
continuity. As an illustration, more than 25% of the current
retail food sales in the US have been reported to consist of
products introduced within the past 5 years (Hughes, 1994).
Similarly, US marketing managers indicated that they expect
40% of the company profit made in 5 years’ time would come
from products not currently on the market (Booz et al., 1982).
Within the well-established product-market expansion matrix
for growth (Ansoff, 1957), new product development (NPD)
is identified as one of the important growth strategies of the
firm.
Despite the fact that successful NPD is crucial to profitability
and growth ambitions, the actual success rates of new
product introductions are fairly disappointing. Although there
is a lack of reliable data on actual success and failure rates,
reported failure rates are ranging anywhere between 40% (e.g.,
Barczak et al., 2009) and as high as 90% (e.g., Gourville,
2006). One reason for this lack of insight into actual success
and failure rates stems from how success rates are being defined
(Castellion and Markham, 2013). Success rates have
been expressed as the percentage of commercialized new
products that not only meet their marketing (e.g., market share
and profit contribution) objectives, but also relative to the
number of initial ideas that have entered the NPD selection
process. Research on the 2003 the Product Development and
Management Association best practices study (Barczak et al.,
2009) suggests that approximately 15% of the new product
ideas and approximately 60% of the new products actually
introduced into the market place make it to a commercial
success in the market.
Whatever the exact metric and the exact percentage be,
failure rates of new product introduction are an important
concern to academics and practitioners alike, as new product
introductions require substantial up-front investments that are
not necessarily recouped from the new product’s financial
returns.
Bottom-line, NPD is an activity that is both necessary in
light of market turbulence, but at the same time quite uncertain
and risky in terms of potential failure. Not surprisingly,
the NPD process has received a lot of attention in the marketing
and management literatures (see Hart, 1996 for an
overview).
AB - Introduction
For most companies, the introduction of successful new
products is critical to the achievement of the short- and longterm
corporate strategic goals of profitability, growth, and
continuity. As an illustration, more than 25% of the current
retail food sales in the US have been reported to consist of
products introduced within the past 5 years (Hughes, 1994).
Similarly, US marketing managers indicated that they expect
40% of the company profit made in 5 years’ time would come
from products not currently on the market (Booz et al., 1982).
Within the well-established product-market expansion matrix
for growth (Ansoff, 1957), new product development (NPD)
is identified as one of the important growth strategies of the
firm.
Despite the fact that successful NPD is crucial to profitability
and growth ambitions, the actual success rates of new
product introductions are fairly disappointing. Although there
is a lack of reliable data on actual success and failure rates,
reported failure rates are ranging anywhere between 40% (e.g.,
Barczak et al., 2009) and as high as 90% (e.g., Gourville,
2006). One reason for this lack of insight into actual success
and failure rates stems from how success rates are being defined
(Castellion and Markham, 2013). Success rates have
been expressed as the percentage of commercialized new
products that not only meet their marketing (e.g., market share
and profit contribution) objectives, but also relative to the
number of initial ideas that have entered the NPD selection
process. Research on the 2003 the Product Development and
Management Association best practices study (Barczak et al.,
2009) suggests that approximately 15% of the new product
ideas and approximately 60% of the new products actually
introduced into the market place make it to a commercial
success in the market.
Whatever the exact metric and the exact percentage be,
failure rates of new product introduction are an important
concern to academics and practitioners alike, as new product
introductions require substantial up-front investments that are
not necessarily recouped from the new product’s financial
returns.
Bottom-line, NPD is an activity that is both necessary in
light of market turbulence, but at the same time quite uncertain
and risky in terms of potential failure. Not surprisingly,
the NPD process has received a lot of attention in the marketing
and management literatures (see Hart, 1996 for an
overview).
KW - Consumer acceptance of new product
KW - Consumer behavior
KW - Consumer oriented new product development
KW - Consumers' inference formation
KW - Consumers' want formation
KW - Formation of trial and repeat intentions
KW - How consumers make product choice decisions
KW - Market orientation
KW - New product development
KW - Product life cycles
KW - Quality function deployment
KW - Stage-gate processes
KW - Structured approached to new product development
KW - Success and failure factors
U2 - 10.1016/B978-0-444-52512-3.00062-0
DO - 10.1016/B978-0-444-52512-3.00062-0
M3 - Chapter
T3 - Vol. 2
SP - 375
EP - 386
BT - Encyclopedia of Agriculture and Food Systems : 5-volume set
A2 - van Van Alfen, N.K.
CY - San Diego
ER -