Do firms need a custom-designed new product screening model?

Organizations have traditionally taken a variety of approaches to screening new product ideas. The use of a formal evaluation process to support screening decisions can reduce the costs and risks associated with product development. Although making good new product choices is vital, many managers have not applied analytical screening models because these models have not been customized to reflect the particular character of their firm and industry. In a study of how managers from different types of companies screen new product proposals, Ulrike de Brentani finds that the essential criteria determining new product selection do not differ radically among firms. This indicates that managers can potentially benefit from applying an existing formal evaluation model that encompasses the critical factors generally applied when making new product evaluation decisions, even if that model has not been customized for their specific application.