Theory of New Product Development and Its Applications

A product which can be a physical object or a service should be functional and emotional to satisfy the customer's need, and to offer value, be delivered as the way customer demanded. Also, it has to include other specific elements like providing customer services. New product is the result of a creative and unique idea that is able to make consumers satisfied. In the process of new product development, it should not be thought that the change will only be on product physically but also on every aspect of the product. The difference between ideas increases production of different goods. The different kind of goods can positively affect the customers' opinion about a business. When a new business starts to produce a product which satisfies customer's need, then the demand of competitor's product which was already in the market may be decreased. Establishment of new product development (NPD) departments and their direct influence in the production process is crucial for businesses. They can determine demand and needs of consumers by applying different theories. These theories can be classified as (i) product-service systems, (ii) the Kano model, (iii) conjoint analysis, (iv) the product value matrix and (v) quality function deployment.