This article focuses on a relatively neglected concept in new product management: innovation resistance. Specifically, it examines why consumers develop resistance to innovations at the attitude formation and intention-to-buy stages of their decision process, and what strategies marketing firms have within their direct control to reduce this resistance. S. Ram identifies two major sources of innovation resistance: perceived risk and cognitive resistance. These are studied in the context of four product groups and two distinct strategies to reduce innovation resistance. The results show that a strategy of innovation modification works to reduce resistance caused by perceived economic and functional risk. On the other hand, communication strategies can reduce resistance caused by perceived social or psychological risk. Sources of innovation resistance and appropriate strategies vary across different product groups. INSET: BIOGRAPHICAL SKETCH. [ABSTRACT FROM AUTHOR]
Academy of Management Journal. Feb2001, Vol. 44 Issue 1, p61-80. 20p. 2 Diagrams.
NEW product development, PRODUCT management, COMMERCIAL products, CONSUMER preferences, INDUSTRIAL research, MANUFACTURING processes, RAPID prototyping, RESEARCH & development, MARKETING management, TECHNOLOGICAL innovations, JAPANESE, and UNCERTAINTY
This article develops a theoretical model that examines the moderating effect of perceived technological uncertainty on new product development (NPD). The authors tested the theoretical model using 553 Japanese NPD projects. They found that cross-functional integration, marketing and technical project synergy, and proficiency in marketing and technical development activities differentially contribute to project performance under conditions of high and low perceived technological uncertainty. Japanese project managers differentially focus NPD efforts on these factors according to the level of perceived technological uncertainty. [ABSTRACT FROM AUTHOR]
NEW product development, PRODUCT management, MARKETING management, COMMERCIAL products, TIME to market (New products), RAPID prototyping, BUSINESS incubators, CONCURRENT engineering, INVENTIONS, MANUFACTURING processes, INDUSTRIAL design, MARKETING, and CASE studies
The traditional view of the process of new product development (NPD), which is often prescribed as a series of activity "stages", is critically reviewed. A number of problems are identified with this and other approaches to NPD as accurate representations of the process, such as their concentration on intra-firm aspects and their ordered and sequential structure. The paper argues for an alternative approach, based on variable "blocks of NPD activities, which also takes account of external organizations' involvement in the process. [ABSTRACT FROM AUTHOR]
We model concept testing in new product development as a search for the most profitable solution to a design problem. When allocating resources, developers must balance the cost of testing multiple designs against the potential profits that my result. We propose extreme-value theory as a mathematical abstraction of the concept-testing process. We investigate the trade-off between the benefits and costs of parallel concept testing and derive closed-form solutions for the case of profits that follow extreme-value distributions. We analyze the roles of the scale and tail-shape parameters of the profit distribution as well as the cost of testing in determining the optimal number of tests and total budget for the concept phase of NPD. Using an example, we illustrate how to estimate and interpret the scale and tail-shape parameters. We find that the impact of declining concept-testing costs on expected profits, the number of concepts tested, and total spending depend on the scale/cost ratio and tail-shape parameter of the profit distribution. [ABSTRACT FROM AUTHOR]
Credit Union Management. Oct2005, Vol. 28 Issue 10, p62-62. 1p.
DIFFUSION of innovations, TECHNOLOGICAL innovations, COMMERCIAL products, MARKETING management, RAPID prototyping, INNOVATION adoption, and INDUSTRIAL research
The article focuses on the concept of everyday innovation while doing regular work. Product innovations are often thought to come from "break-through" ideas conjured up by geniuses in top-secret laboratory. In reality, one can all do things differently in his/her own jobs to create innovation. Some of the most powerful new ideas are considered soft innovations, for which big research and development budgets are not needed. An excellent example is frequent flyer programs. Who could have imagined how they have transformed business travel. A second way to bring new products to market is through value innovation, such as the "Blue Ocean Strategy" discussed in the October 2004 issue of Harvard Business Review.