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Extracting Innovative Buyers by Scoring Using Innovator Theory

Author

Listed:
  • Ryo Iwata

    (DO HOUSE Inc., Sales Promotion Division, Japan,)

  • Kaoru Kuramoto

    (Aoyama Gakuin University, Department of Industrial and Systems Engineering, Japan)

  • Kenyuu Matsumoto

    (Aoyama Gakuin University, Department of Industrial and Systems Engineering, Japan)

  • Satoshi Kumagai

    (Aoyama Gakuin University, Department of Industrial and Systems Engineering, Japan)

Abstract

For companies that want to sell a high volume of products, it is important to identify innovative buyers to help with product marketing efforts. The purpose of this paper is to construct a model extracting whether users are innovative buyers or not from their purchase histories at physical stores and from access logs from an online-to-offline (O2O) site. Innovative buyers are users who influence other users' product purchases, also known in innovator theory as innovators and early adopters. They purchase products quickly, visiting physical stores such as supermarkets and convenience stores. In other words, innovative buyers are known to have high cosmopolite natures. In extracting innovative buyers, we estimated the speed of user product purchases and their cosmopolite natures. This estimation index can also be referred to as innovator scores. We went on to verify this method with socioeconomic status points, personality points and communication points (SPC points), using consciousness data and profile data collected from a panel on an O2O site. Thus, we showed that innovative buyers could be extracted using this new method, and the accuracy was higher than that of traditional methods measuring only the speed from product sale start to user purchase.

Suggested Citation

  • Ryo Iwata & Kaoru Kuramoto & Kenyuu Matsumoto & Satoshi Kumagai, 2020. "Extracting Innovative Buyers by Scoring Using Innovator Theory," International Review of Management and Marketing, Econjournals, vol. 10(5), pages 92-102.
    • Handle: RePEc:eco:journ3:2020-05-11
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    References listed on IDEAS

    as
    1. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    2. Vijay Mahajan & Eitan Muller & Frank M. Bass, 1995. "Diffusion of New Products: Empirical Generalizations and Managerial Uses," Marketing Science, INFORMS, vol. 14(3_supplem), pages 79-88.
    3. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
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    Cited by:

    1. Ryo Iwata & Kaoru Kuramoto & Satoshi Kumagai, 2022. "Detecting Chasms and Cracks Using Innovator Scores and Agent Interactions," International Review of Management and Marketing, Econjournals, vol. 12(6), pages 1-15, November.

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    More about this item

    Keywords

    Innovator Scores; Innovative Buyers; SPC Points; O2O; Cosmopolite Natures; Extraction Model;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

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