Mahajan, Vijay; Muller, Eitan; Bass, Frank M.
June 1995
Marketing Science;1995 Part 2 of 2, Vol. 14 Issue 3, pG79
Academic Journal
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.


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