When we apply the core measures of new product success by the authors Hultink and Robben (1995) we should have a clearer picture.The authors define in their article 16 core measures of new product success, of which four factors are being perceived as being equally important for short-term and long-term success, namely: customer satisfaction, customer acceptance, meeting quality guidelines, and product performance level (Hultnik and Robben, 1995).After years of declining sales and bad financial records, the company has been sold in beginning of 2010 to the British millionaire Jimi Heselden who still was convinced of the invention.
The idea was to build this really new, technologically advanced transportation device, which would be adopted by the consumers as their ‘new’ way to get from A to B.
The problem was however, that Segway has blocked out any market pull by not gaining knowledge of customer needs, market knowledge or knowledge about legitimacy issues.
Even if the technological concept is very good, unfortunate accidents could have attributed to the damage of Segway’s reputation in this segment. has missed to counteract this by promoting the safety of the Segway.
Famous examples of damaging the reputation were e.g. Bush has fallen from a Segway while the press was filming, and of course the tragedy of the British owner Jimi Heselden who has fallen down a cliff with his device.
The effect was that Segway budgeted their product development with exaggerated beliefs of future returns on investment, which resulted in overspending on technological development that made the product expensive to purchase rather than spending the budget on their initial strategy of gaining a big customer base by trying to reduce costs of the Segway device.