Product Advantage: a Multi-Dimensional Lens approach

Product advantage is the single most cited predictor of new product performance in new product development literature and indeed is the most powerful differentiating factor between successful and unsuccessful new products.... [ view full abstract ]

Product advantage is the single most cited predictor of new product performance in new product development literature and indeed is the most powerful differentiating factor between successful and unsuccessful new products. However while previous studies have defined product advantage and examined its impact on new product success, few have discussed the elements that make-up the construct or identified the dimensions of product advantage that firms should concentrate on.

By tracing the development of product advantage research this paper highlights that a single definition of product advantage has prevented the effective understanding of the impact that the construct has in enhancing new product development. Using factor analysis techniques and data provided by 123 manufacturing firms this paper provides empirical evidence for the separation of product advantage into three dimensions; 1) product innovativeness, 2) product superiority and 3) product meaningfulness, each deserving of independent study. In doing so this paper contributes to the growng area of innovation literature and provides a platform for future studies seeking to investigate the role product advantage plays in new product development success.