Innovation Mechanism of Customer Participation and New Product Development Stages in Banking: An Empirical Research in B-C

Based on survey data of 154 sample banks, the paper investigates impacts of customer participation at different stages of new product development process. Results of empirical analysis show that: At the stage of ideas and concepts generation, customers play the role of information provider and have the positive impact on the innovativeness. At the stage of development, customers play the role of co-developer and have the negative impact on the innovation speed. At the stage of market text and commercialization, customers play the role of information provider and have no significant impact on the innovativeness and the innovation speed, at the same stage, customers also play the role of user and have the positive impact on the innovation speed. This research indicates customer relationship management and customer participation dependence have different moderating effects on innovation performance.