The Relationship between Product Characteristics, Customer and Supplier Involvement and New Product Development

The identification of changes in requirements of users in various markets with the competition in business and increase of economic prosperity leads into the execution of new product development of companies. The aim of new product development is responding the needs of customers, consistency with market conditions and environmental changes, increase of profit, customers satisfaction and coping up with competitors policies. This study is aimed to evaluate the relationship between product characteristics on customer participation and supplier and new product development in study population of manufacturing companies of furniture in Tehran city. The data collection measure in this study is a questionnaire based on 26 items and its reliability is supported with Cronbach's alpha as 0.813. The results of data analysis of 380 questionnaires completed by Lisrel software showed that all hypotheses were supported and there was an association between product distinction, innovation and modular product with customer participation and supplier. Also, there is an association between customer participation and suppliers with new product performance.