Modeling market information processing in new product development: An empirical analysis

Abstract

This research explores the antecedents and consequences of market information processing during the development process of new high-tech products. To this end, we develop and test a conceptual model for market information processing in three generic stages of the new product development (NPD) process (predevelopment, development and commercialization). In addition, we explore the relationships between market information processing, its antecedents, and product advantage and success. We test our model with responses from 166 NPD-managers in Dutch high-tech firms. The findings show that the market information processing variables are related differentially to new product outcomes, even when controlling for product advantage and product newness to the market. In addition, we found that companies can enhance market information processing for new high-tech products by influencing project priority and flexibility to new products, and by reducing interdepartmental conflict.

Market Information Management in Product Design

“…To Veldhuizen, Hultink and Griffin (2006), the Market Orientation is achieved through the processing of the market information, since several studies on the use of market information have confirmed its positive relationship with the successful development of new products. However, information processing is considered a difficult field to manage, because many organizations fail to effectively absorb market information on new products (OTTUM; MOORE, 1997;VELDHUIZEN;GRIFFIN, 2006).…”

“…However, information processing is considered a difficult field to manage, because many organizations fail to effectively absorb market information on new products (OTTUM; MOORE, 1997;VELDHUIZEN;GRIFFIN, 2006). Ottum and Moore (1997) consider that the success or failure of the organization's new products is connected to the competence of the organization in the processing of market information, namely, the generation, dissemination and use of market information.…”

“…To Veldhuizen, Hultink and Griffin (2006), the market information processing corresponds to the acquisition, dissemination and use of information on the DNP, part of the MO. Moorman (1995) defines it into four parts: acquisition, transmission of information, conceptual use and instrumental use.…”

“…The definition advocated by Veldhuizen, Hultink and Griffin (2006) on market information processing share the same similarity, divided into acquisition, dissemination and use of information, which in turn are those that most closely resemble the stages of Market Orientation. For this reason, we opted for the definition of Veldhuizen, Hultink and Griffin (2006) for the use of the market information processing construct in this paper.…”

Investigating the effects of customer relationship management and supplier relationship management on new product development

“…Therefore, this element of CRM can develop the strategies of the organization in order to satisfy customer needs. Accordingly, a study by Veldhuizen et al [39] attested to the effective role of market information processing in new product advantage and success through the new product development process. Effective information processing has been known as a challenging area because many organizations are not able to utilize market information in their NPD process [58].…”