Product Performance

The long-term success of any organization depends, to a large extent, on the success of its products. Researchers have argued that corporate credibility is defined by the extent to which a company is willing and able to deliver products that satisfy customer needs and wants. Reputation itself is often defined in terms of the demonstrated capability of a firm to deliver high-quality products and services. When studying corporate reputation, then, it is essential to also discuss product performance. An emphasis on performance—specifically the success of new products—is paramount because so many new products fail. Empirically, new products’ failure rate is typically found to be 40 percent or higher. For novel innovations, the incidence of failure is even higher, as 76 percent of these commercialized products ...