TITLE

DIFFUSION OF NEW PRODUCTS: EMPIRICAL GENERALIZATIONS AND MANAGERIAL USES

AUTHOR(S)
Mahajan, Vijay; Muller, Eitan; Bass, Frank M.
PUB. DATE
June 1995
SOURCE
Marketing Science;1995 Part 2 of 2, Vol. 14 Issue 3, pG79
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article discusses the empirical generalizations that stem from the diffusion model and it also discusses some of the managerial applications of the model. The model was developed by F.M. Bass, which represents a pattern or regularity that has been shown to repeat over many new products and services in many countries and over a variety circumstances. As a theory of communications, diffusion theory's main focus is on communications channels, which are the means by which information about an innovation is transmitted to or within the social system. These means consist of both the mass media and interpersonal communications. Members of a social system have different propensities for relying on mass media or interpersonal channels when seeking information about an innovation. Interpersonal communications, including nonverbal observations, are important influences in determining the speed and shape of the S-shaped pattern of the diffusion process in a social system. The model is designed to apply to initial purchase of the product and not to apply to replacement demand. Over time the replacement component of total demand will increase relative to the initial purchase component and if sales data, as opposed to adoption data, are used in fitting the model, care must be taken to restrict time periods to those in which the replacement demand is negligible.
ACCESSION #
4477219

 

Related Articles

  • New Product Planning in the Replacement Tire Industry. Karelse, Jonathon // Journal of Business Forecasting;Winter2012/2013, Vol. 31 Issue 4, p20 

    The article focuses on the product planning in replacement tyre industry before the launch of a product. It discusses the challenges in the industry and mentions that some tyre manufactures have created brand recognition which influences the purchasing decision of the customer. It also focuses...

  • NEW PRODUCT ENTRIES AND PRODUCT CLASS DEMAND. Mason, Charlotte H. // Marketing Science;Winter90, Vol. 9 Issue 1, p58 

    Because new products are critical to success and survival, the evaluation of new product ideas receives much attention. In the early stages of product development, concept evaluation models are used to predict market share and/or sales of hypothetical product concepts. These models have focused...

  • Some Limits on the Potency of Word-Of-Mouth Information. Wilson, William R.; Peterson, Robert E. // Advances in Consumer Research;1989, Vol. 16 Issue 1, p23 

    Past research documents the substantial impact of word-of-mouth (WOM) information on the product evaluations and purchase intentions of potential buyers, especially if the products are novel and unbranded. This study examines the potency of WOM information if the potential buyer expresses an...

  • keep Sales UP Even When the Economy is Down. Lee, Tony // Giftware News;Dec2008, Vol. 33 Issue 12, p12 

    The article emphasizes the need to offer new products in order to attract customers into stores and influence their purchasing decisions, according to Marshal Cohen, chief industry analyst of NPD Group. It states the benefit of trade shows for retailers. It provides information on several new...

  • CONSUMER INNOVATIVENESS: A MARKETING APPROACH. Dobre, Costinel; Dragomir, Anca; Preda, Gheorghe // Management & Marketing;2009, Vol. 4 Issue 2, p19 

    By innovativeness we mean the predisposition of a consumer to adopt a product earlier than most others. Various studies have shown that across product categories, innovators tend to be: opinion leaders, risk takers, more likely to obtain information from mass media than through word of mouth,...

  • A Study of Innovativeness Overlap. Ostlund, Lyman E. // Journal of Marketing Research (JMR);Aug1972, Vol. 9 Issue 3, p341 

    The article presents a study which assesses the extent of innovativeness overlap among six new products from different product categories in Boston, Massachusetts. Innovativeness of each product was assessed by a purchase intentions measure of how likely each person will buy the said products....

  • Understanding Colour Trends…. Raghavan, Dilip // Paintindia;Nov2010, Vol. 60 Issue 11, p50 

    In the article the author emphasizes the importance for a paint manufacturer to understand customer preferences in terms of the colour, shades and patterns to ensure product development and production could be managed efficiently. He expresses interest in discovering the difference in color...

  • EFFECT OF INITIAL TRIAL OF A NEW PRODUCT ON ATTITUDE-BEHAVIOR CONSISTENCY. Yalch, Richard F.; Scott, Carol A. // Advances in Consumer Research;1977, Vol. 4 Issue 1, p81 

    A laboratory experiment was conducted demonstrating that initial experience with a new product reduces the importance of nonattitudinal measures in predicting future behavior. This effect was only slightly moderated by the outcome (good, neutral, or poor) of the initial experience. These...

  • Pre-Test-Market Models: Validation and Managerial Implications. Urban, Glen L.; Katz, Gerald M. // Journal of Marketing Research (JMR);Aug1983, Vol. 20 Issue 3, p221 

    The predictive accuracy of a widely used pre-test-market model (ASSESSOR) is analyzed. The standard deviation between pre-test-market and test-market shares is 1.99 share points before adjustments for achieved awareness, distribution, and sampling and 1.12 share points after adjustment....

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics