Does customer interaction enhance new product success?

Recent years have witnessed a resurgence of academic and practitioner interest in new product development and in the way companies interact with their customers. While there has been considerable scientific progress in both research ch areas, very limited attention has been given to customer interaction in the new product development process as a means to increase new product success. This article reports on research assessing the preformance impact of (1) the intensity of customer interaction in different stages of the new product development process and (2) the characteristics of the involved customers. The research is based on field interviews as well as statistical analyses of a sample in the machinery industry. Results indicate that customer interaction during certain stages (but not others) of the new product development process has a positive impact on new product success. The characteristics qi the involved customers have a significant effect on new product success as well. As an example, collaborating with financially attractive customers or customers exhibiting lead user characteristics increases new product success. (C) 2000 Elsevier Science Inc. All rights reserved.