Open Journal of Social Sciences, 2014, 2, 34-38
Published Online March 2014 in SciRes. http://www.scirp.org/journal/jss
How to cite this paper: Liu, H.-W. and Yang, L.-R. (2014) Influence of Marketing Strategy on NPD Performance: Role of
Customer Perceived Value and Product Characteristics. Open Journal of Social Sciences, 2, 34-38.
Influence of Marketing Strategy on NPD
Performance: Role of Customer Perceived
Value and Product Characteristics
Han-Wen Liu, Li-Ren Yang
Department of Business Administration, Tamkang University, New Taipei, Chinese Taipei
Email: alson11 6@gmail. com
Received Dec emb er 2013
Marketing strategy may be one of the major causes of new product development (NPD) project
success. However, many organizations ignore adequate marketing strategy leading to a poor NPD
performance. The primary purpose of this research was to investigate the associations among im-
plementation of brand m a rketing strategy, customer perceived value (CPV), and NPD performance.
The second objective was to determine whether the impact of customer perceived value on NPD
project performance was moderated by product characteristics.
Brand Marketing Strategy; Customer Perceived Value; Product Characteristics; New Product
Development ; Project
As the strategy of a firm relates to the firm’s aspirations to achieve a desired position in its competitive external
environment, the strategy of a project relates to the project’s aspirations to achieve a desired position in its
competitive stakeholder environment . Additionally, development of project strategy is the stage where
project risk asse ssments are undertaken and the specific project execution methods are analyzed. Success during
the subsequent phases of a project is highly dependent on the level of effort expended during this stage .
Brand marketing strategy is a direction for a product that contributes to success of the new product development
(NPD) project. Many studies have shown that brand marketing strategy may contribute to project performance
[3,4]. Thus, implementation of brand marketing strategy is critical to the success of NPD projects. The devel-
opment of brand marketing strategy is one of the major tasks during NPD project planning.
While project strategy is widely accepted in product development, empirical evidence that supports the im-
portance of brand marketing strategy in new product development is lacking. This study attempts to fill the gap
in the literature by identifying the roles of customer perceived value and product characteristics in the relation-
ship between brand marketing strategy and new product development success. This research employed the ques-
tionnaire survey for data collection. In order to explore the benefits of implementation of brand marketing strat-
egy, an industry-wide survey was used to investigate NPD projects in the Taiwanese high-tech industry.
H.-W. Liu, L.-R. Yang
2. Development of Research Hypotheses
As indicated by the review of literature, strategy formulation plays an important role on a project. It is an im-
portant component of effective project management. The problem related with strategy adoption is one of the
main reasons for project failures. However, most of the project strategies were difficult to identify and some
were not clear and well organized. The causes of poor performance often originated in poor management partic-
ularly at the front-end during strategy formulation, rather than poor downstream execution . If a problem is
detected during strategy formulation, many other problems are minimized in the following phases. Thus,
fro n t-end is often cited as one of the most important, but difficult, phases of a project . The results of previous
studies indicated a correlation between strategy adoption and project performance [1,3,6]. Marketing strategy is
often cited as one of the most important factor influencing customer perceived value [7,8]. A review of the lite-
rature also indicated that customer perceived value may improve NPD performance [9,10]. Based on the rele-
vant literature, the following hypotheses were postulated and tested:
H1: Implementation of brand marketing strategy positively influences NPD project outcomes.
H2: Implementation of brand marketing strategy positively influencescustomer perceived val ue .
H3: Cust omer perceived value positively influences NPD project outcomes.
H4: Customer perceived value mediates the relationship between brand marketing strategy and NPD project
Above previous studies indicated that strategy implementation may play an important role in the performance
of a project. In other words, projects can be made more successful by adopting various strategies. Additionally,
prior research has indicated that product characteristics may play a moderating role in the relationship between
practice use and project success [11-14]. Based on the previous research, the following research hypothesis was
H5: Product characteristics moderate the relationship between customer perceived val ue and NPD project
3.1. Survey Design and Construct Measurement
The items used to measure brand marketing strategy were based on [15,16]. On the other hand, the scales de-
veloped by  were adapted to evaluate customer perceived va l ue. Additionally, items used to rate NPD per-
formance were based on the surveys developed by .
3.2. Content Validity
Content validity refers to the extent to which a measure represents all facets of a given concept. The content va-
lidity of the survey used in this study was tested through a literature review and interviews with new product
development practitioners. The industry interviews encompassed 2 NPD practitioners. The refined assessment
items were included in the final survey. Finally, copies of a draft survey were sent to three professors to pre-test
for the clarity of questions. Their insights were also incorporated into the final version of the survey.
4. Results and Ana lysis
4.1. Regression Analysis Results
The regression results of these models are presented in Table 1. When quality value was used as the dependent
variable (Model 1), two independent variables were identified to be significant: product strategy and service
strategy. The results of Model 3 suggest that brand positioning strategy and product strategy may contribute to
service value. The multiple coefficient of determination (R squared) was 0.528. In other words, the independent
variables, brand positioning strategy and product strategy, explained 52.8 percent of the variation in the depen-
dent variable, service value.
Three regression models were developed using the four customers perceived value dimensions as independent
variables and each of the three NPD performance measures as a dependent variable in each model. The regres-
sion results of these models are presented in Table 2. As shown in Table 2, when market performance was used
H.-W. Liu, L.-R. Yang
Table 1. Regression analysis results for brand marketing strategy and customer perceived value.
Independent variable Quality value Price value Service value Reputation
(Model 1) (Model 2) (Model 3) (Model 4)
Promotion strategy −0.054 −0.008 0.161 0.316*
Brand positioning strategy −0.096 0.247 0.244* −0.199
Product strategy 0.470*** 0.247 0.572*** 0.133
Service strategy 0.378** 0.171 −0.069 0.097
F-statistics 12.793*** 6.177*** 16.786*** 2.078
R squared 0.460 0.292 0.528 0.122
Variance-inflation factors <2 <2 <2 <2
Table 2. Regression analysis results for customer perceived value and NPD performance.
Independent variable Marketing performance Overall benefit Customer satisfaction
(Model 1) (Model 2) (Model 3)
Quality value 0.193 0.309* 0.353*
Price value 0.378** 0.338** 0.198
Service value −0.058 0.057 −0.054
Reputation value 0.314** 0.209* 0.264*
F-statistics 13.815*** 18.413*** 10.894***
R squared 0.479 0.551 0.421
Variance-inflation factors <2 <2 <2
as the dependent variable (Model 1), two independent variables were identified to be significant: price value and
reputation value. The findings indicate that price value and reputation value are significantly related to market
performance. The results of Model 2 suggest that quality value, price value and reputation value contribute to
overall benefit. The results of Model 3 show that levels of quality value and reputation value are associated with
4.2. Moderating Role of Product Characteristics
Cluster analysis was used in an exploratory mode to develop an objective classification of projects. In order to
identify homogeneous projects clusters with the same kinds of perceptions of customer perceived value , a K-
means cluster analysis was performed on the basis of the four dimensions of customer perceived value . The
cluster analysis has identified two clusters for customer perceived va l ue , with the cluster mean values of discri-
minating variables given in Table 3. The first cluster was labeled projects with high levels of custo mer per-
ceived value . The second cluster consists of projects with low levels of customer perceived value.
The projects were examined by clustering them on the basis of differences in perceptions of custome r per-
ceived value . The study reveals two segments for customer perceived value. On the other hand, these subject
projects were categorized according to 7 seven data class variables: team size, innovation level, time availability,
product complexity, environmental uncertainty, project duration, and project budget. Thus, for example, to test
for the moderating influence of project budget on the relationship between customer perceived va l ue and NPD
performance in terms of overall benefit, 2 (customer perceived value ) × 3 (project budget) analysis of variance
(ANOVA) were performed. The two-way ANOVAs were utilized to determine the joint effects of custo mer
perceived value and project budget on overall benefit. The results indicate a significant interaction of cust ome r
perceived value (CPS) and project budget (PB) for overall benefit, F = 3.308, p < 0.05. The results suggest that
project budget have a moderating effect on the relationship between customer perceived value and overall bene-
fit. However, there is no significant result for the other data class variables. Figure 1 sho ws the relationship be-
H.-W. Liu, L.-R. Yang
Figure 1. Project budget in the relationship between customer perceived
value and overall benefit.
Table 3. Discriminating variables of customer perceived value.
Variable Projects with high customer perceived value Projects with low customer perceived value t-statistic p-valu e
Number Mean Number Mean
Quality value 35 5.75 30 4.60 7.595 0.000
Price value 35 5.80 30 4.67 7.631 0.000
Service value 35 5.62 30 4.50 5.481 0.000
Reputation value 35 5.50 30 4.48 5.581 0.000
tween c us to mer perceived value and overall benefit at different project budget. The analyses suggest that
projects with high and low budget were more likely to obtain benefit when they experience a high level of cus-
tomer perceived value than projects with medium budget.
While the diverse benefits of project strategy have received substantial attention, empirical evidence that sup-
ports the importance of brand marketing strategy in new product development projects is lacking. The primary
purpose of this study was to determine the relationships among brand marketing strategy, customer perceived
value, and NPD performance. The second objective was to determine whether the impact of customer perceived
value on NPD performance was moderated by product characteristics.
The results suggest that implementation of brand marketing strategy contributes significantly to customer
perceived value. In addition, customer perceived value has a significant effect on NPD performance. The testing
also supports a role for customer perceived value as a mediator in the relationship between brand marketing
strategy implementation and NPD performance. The findings also indicate that the project budget has a mod-
erating effect on the relationship between customer perceived value and NPD performance. Specifically,
projects with high and low budget are more likely to obtain benefits when they experience a high level of cus-
tomer perceived value than projects with medium budget.
The research results offer guides to new product development process. Findings from this study are helpful to
project planners in deciding whether to adopt brand marketing strategy in new product development process.
Project planners can use the research results to modify their current process. However, one limitation of this
study is its cross-sectional design. An objective for future study is to determine how brand marketing strategy is
changing over time. Survey with a longitudinal design may be needed to gain deeper insights into the benefits of
brand marketing strategy.
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