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The development of new services. New product development practices in the financial services industry: A model of successful determinants for NPD.

By Scott J. Edgett


The combined environmental effects of technological\ud change, increasing competition, new legislation and\ud increasingly demanding consumers have created pressure\ud within the financial services industry for change. One\ud outcome has been a proliferation of new products in the\ud marketplace. This research explores new product\ud development within one subset of this industry -- building\ud societies.\ud By combining the new product development, service\ud marketing and financial services literature, a foundation\ud has been developed for an empirical study into the\ud development practices and the characteristics of successful\ud and unsuccessful new products. The determinants of success\ud and failure for new product development have been examined\ud utilizing a comparative methodology, and subsequently a\ud discriminant model has been developed that successfully\ud classifies successful and unsuccessful new products.\ud By determining how new products are actually\ud developed, the findings support previous claims that\ud intangibility, inseparability, heterogeneity and\ud perishability do have an effect on the development process.\ud Further, the level of sophistication of the development\ud activities is lower than in previously reported research.\ud Notable variations from the development process for\ud tangible new products are the inclusion of system design,\ud system testing and personnel training stages. The majority\ud of societies have been found to lack strategic integration\ud of the development process, to apply different measures of\ud success and to prefer qualitative market research\ud techniques over quantitative approaches. As well,\ud considerable variation exists in the organizational\ud approaches used to manage the process, although\ud organizational related variables were found to have a\ud strong impact upon the predictability of a successful\ud outcome for a new product

Topics: Marketing, New product development, Services marketing, Building societies, Financial services industry, Organizational variables
Publisher: Postgraduate School of Studies in Management & Administration.
Year: 1991
OAI identifier:
Provided by: Bradford Scholars

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