Consumer behaviour-based innovation diffusion modelling using stochastic differential equation incorporating change in adoption rate Online publication date: Fri, 29-Aug-2014
by Ompal Singh; Adarsh Anand; P.K. Kapur; Deepti Aggrawal
International Journal of Technology Marketing (IJTMKT), Vol. 7, No. 4, 2012
Abstract: Bass innovation and diffusion model and many of its extended forms have been reported in marketing literature and applied successfully for predicting adoption curve of products from different segments of market. All these models assume that an adopter buys the product only once in his lifetime, however, this may not be true, because a consumer might buy the product more than once for his utility (repeat purchasing). Also, there can occur a situation that the consumer leaves the system without buying the product (balking). In this paper, we propose a diffusion model based on Itô's type of stochastic differential equation with repeat purchasing and balking. It also incorporates the change-point concept, where the rate of product adoption per remaining potential adopter might change due to shift in marketing/promotional strategy, entry/exit of some of the competitors in the market. The applicability of the proposed model is illustrated using new product sales data.
Online publication date: Fri, 29-Aug-2014
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Marketing (IJTMKT):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com