Factors Influencing New Product Success in the Case of Cooperative Bank of Oromia S.C
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Date
2023-10
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Addis Ababa University
Abstract
This study's objective is to assess the variables that affect the success of new products in the Coopbank. New product development is an essential part of banking activity in recent era of digitalization. Hence, it is critical to understand the factors affecting the success of developing new products, which in turn enhance the sustainable development and profit. Though, this research empirically examines factors that influence new Product Success in Coopbank. In the process of the study data was acquired by taking 344 samples from 3221 populations using purposive sampling. Target populations were employees of Coopbank, specifically working with in Addis Ababa city districts. The dependent variable used in this study was new product development success with explanatory variables management commitment, preliminary market assessment, and promotion quality and resource availability. Descriptive and regression analyses were employed to examine the selected variables. A variety of diagnostic tests (tests for normality assumptions, linearity and homoscedasticity, test for lack of multicollinearity, test of independent of residuals) were carried out. The diagnostic results show that none of the classical linear regression model assumption is violated. Among these variables, resource availability is an important factor for new product development success, it is highly significant than others. All explanatory variables are statistically significant on the performance of new product development in Coopbank, according to the results of descriptive, correlation, and regression analysis. Coopbank should improve resource availability, preliminary market evaluation, management commitment, and promotion quality, to succeed in new product development. It creates long-term profit and is a crucial instrument for acquiring a competitive advantage
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Management Commitment