Title:
THE LINK BETWEEN NEW PRODUCT DEVELOPMENT AND CUSTOMER PARTICIPATION: THE ROLE OF CUSTOMER SATISFACTION AND ADOPTION RATE

Authors:
Phuong Nga Cao ,Vietnam

Abstract:
To reach a better form of new product development performances along with customer participation, this study has examined the benefits of customer participation, which leads to customer satisfaction based on three attributes of Kano's model. Although the prior studies have stated that customer participation in the new product development is a double-edged sword strategy, this study has shown that cooperating with customers is an easy path to get to the customer satisfaction. We also assume that this satisfaction has led to a greater willingness of customers to buy and use products that improve financial performance and as customer acceptance increases, the new product market will grow dramatically. Obtained data collected from 567 holding companies and 422 customers indicates that customer participation leads to the customer satisfaction and it has a positive impact on new product development financial performance and new product market. The results of this article provide specific managerial guidelines for managing customer participation to improve radical new product innovation.