The Development Activities of Innovative and Non-Innovative New Retail Financial Products: Implications for Success
This article reports the results of a research project into the development process of 100 new retail financial products, 42 innovative and 58 noninnovative, which is part of a broader study conducted on the development and launching practices of new financial products in Greece. The study revealed that innovative and non-innovative products follow similar development patterns, but with quite different emphasis placed on the distinctive parts of the NSD process. The analysis has shown that three development stages are significant determinants of non-innovative products' performance, namely (i) market analysis and commercialization, (ii) technical development, with a positive effect and (iii) operational testing with a negative impact on performance. In the case of innovative products, four development stages were found to impact their performance significantly and positively, namely (i) idea generation and screening, (ii) internal marketing and training, (iii) market analysis and commercialization and (iv) technical development.