Channel Category Managers’ Interrelationships and New Product DevelopmentDonald D. Roupe
Current research suggests many reasons why new products fail. The management orientation of the channel member’s organization; characteristics of the product itself; personalities and training of the channel members responsible for new product development (i.e. product creation and market implementation); and the interrelationship between channel partners have all been considered in the literature as possible factors related to new product success/failure. Even though this study considered the influence of all these variables on new product success, the focal point of the analysis was on the variables that affect channel partners’ interrelationship. The degree of trust, cooperation, and commitment between channel partners as well their ability to communicate and share information were carefully examined in regard to new product success and failure. Specific product characteristics (i.e., product fit, product advantage) and company management orientation factors (i.e., market orientation and innovative character) were also considered in this analysis. A theoretical model was created and tested using a systems thinking approach. Survey data from both retail category managers and their manufacturer contacts were collected and combined into dyads representing successful and unsuccessful new product experiences. Sharing information between channel partners was a major discriminating factor and the strong influencing variable in distinguishing between product success and failure. How well the product fit existing product and market strategies and the relative product advantage realized also discriminated between product success and failure, while market orientation and innovativeness of the channel partners had no influence. Mutual relationship satisfaction and the perceived ability to communicate with each other were also not influential.
Thursday, October 23, 2003
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