The main objective of this study is to analyze the success and failure factors in new product development. Based on the review of relevant literature, the model and hypotheses are derived. The model contains six independent variables which are origin of ideas, marketing, organization and strategy, technology, environment, and product characteristics itself.
Data are collected through interviews and historical records from G company which is one of the largest consumer electronic product manufacturer and the leader in domestic market share in Korea. Total samples are composed of 42 consumer electronic products of G company: successful 20 products and unsuccessful 22 products.
The statistical techniques used in this study are T-test, Binnomial test, and $X^2$-test.
The important results of this study are as follows:
1. The greater the emphasis on advertising than development investment is, the higher the probability of success in new product development is.
2. The higher the level of development effort is, the higher the probability of success in new product development is.
3. Development cost is higher when in-house R&D is more widely utilized than outside technological assistance in new product development.