Types of New Product Performance

Abstract

Using the results of a large survey of new consumer financial services, this research investigates the benefits that new products bring to a company. It is argued that merely assessing sales, market share, and profits ("product benefits") ignores such wider reasons for developing new products as developing a market or improving customer loyalty ("company benefits"). Three distinct dimensions of performance are identified: sales performance (e.g., sales and market share); profitability, and enhanced opportunities (longer-term company benefits). All are related to success. However, it is found that highly successful new products must produce multiple benefits. It is also found that approximately half the value derived from the introduction of the new products is derived from company benefits. As such, these wider benefits should be used as performance measures for new products.