Purpose: The study sought to assess marketers’ perceptions on whether customer participation in various stages of new product development helps or degrades the effectiveness of the new product development process. In addition, the effect of new product development (NPD) process effectiveness on the firm’s marketing performance, operational performance, and financial performance were investigated.

Methodology: A theoretical model was proposed by reviewing the existing literature and empirically assessing data from 257 respondents via structural equation modeling. The respondents were professionals with expertise in new product development and marketing processes.

Findings: The results highlighted that customers’ participation in the creativity or idea generation stage significantly and positively affected the NPD process effectiveness. However, in the concept testing and launch phase, customers’ participation may not affect the NPD process effectiveness. Also, NPD process effectiveness significantly and positively affected the marketing and operational performance of the firm. Interestingly, financial performance was not impacted by the NPD process’s effectiveness.Practical

Implications: The study disclosed that the customers’ participation in the idea generation phase significantly and positively affected the effectiveness of the NPD process. Thus, NPD managers should encourage clients to actively participate in the idea-generation phase. This will not only boost the firm’s knowledge function but also enhance customers’ sense of belonging.

Originality: The attitude of Indian marketers on customer participation or involvement in new product creation as a research topic is difficult to detect. This work bridged the research gap.

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