Effect Of New Product Development On Customer Satisfaction: The Case Of Horizon Addis Tyre S.C

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Addis Ababa University


In today's dynamic and highly competitive market, new product development has become one of the primary activity towards survival of any businesses. The main purpose of the research was to identify which new product success factors (customer involvement, Top/senior management commitment and new product quality) affect the customer satisfaction of the case company. The research used questionnaire distributed to the case company’s business customers, which are found in Addis Ababa, as the primary data collection method. It used quantitative research analysis method. From the total population of 200 a sample of 134 respondents was selected using a non-probabilistic sampling technique which is judgemental sampling. The data collected was analyzed and tested by using correlation and regression analysis. There are various NPDSF but the research focused only on three factors. The research finding is significant to those companies who are involved in NPD to help them focus on specific NPDSF to increase customer satisfaction. The research finding indicate that all the three above mentioned new product success factors, customer involvement, top management commitment and new product quality positively correlate with and also significantly affect the customer satisfaction of the case company.



NPD, Customer Involvement, Top management