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Models of New Product Diffusion Through Advertising and Word-of-Mouth

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Author Info

  • Joe A. Dodson, Jr.

    (N. W. Ayer ABH International, New York)

  • Eitan Muller

    (University of Pennsylvania)

Registered author(s):

    Abstract

    A model of the diffusion process is developed which recognizes (1) the interaction between adopters and non-adopters and (2) the influence of external information sources such as advertising. The model is extended by incorporating the effects of repeat purchasing. The models written by the following authors are shown to be special cases of this model: Gould. Nerlove and Arrow, Vidale and Wolfe, Palda, Bass, Nicosia, and Glaister. The behavioral assumptions which support the model are made explicit and the implications of these assumptions for the shape of the new product growth curve are derived.

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    File URL: http://dx.doi.org/10.1287/mnsc.24.15.1568
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 24 (1978)
    Issue (Month): 15 (November)
    Pages: 1568-1578

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    Handle: RePEc:inm:ormnsc:v:24:y:1978:i:15:p:1568-1578

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    Related research

    Keywords: marketing; marketing: buyer behavior; health care: epidemiology;

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    Cited by:
    1. Francesco Bogliacino & Giorgio Rampa, 2009. "Quality Risk Aversion, Conjectures, and New Product Diffusion," EERI Research Paper Series EERI_RP_2009_27, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Oscar Gutierrez Arnaiz & Francisco Ruiz-Aliseda, 2003. "Entry Patterns over the Product Life Cycle," Discussion Papers 1380, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Theoharakis, Vasilis & Vakratsas, Demetrios & Wong, Veronica, 2007. "Market-level information and the diffusion of competing technologies: An exploratory analysis of the LAN industry," Research Policy, Elsevier, vol. 36(5), pages 742-757, June.
    4. Oscar Gutierrez Arnaiz & Francisco Ruiz-Aliseda, 2003. "Real Options with Unknown-Date Events," Discussion Papers 1378, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    5. Kamrad, Bardia & Lele, Shreevardhan S. & Siddique, Akhtar & Thomas, Robert J., 2005. "Innovation diffusion uncertainty, advertising and pricing policies," European Journal of Operational Research, Elsevier, vol. 164(3), pages 829-850, August.
    6. Yan, Xiaoming & Liu, Ke, 2009. "Optimal control problems for a new product with word-of-mouth," International Journal of Production Economics, Elsevier, vol. 119(2), pages 402-414, June.
    7. Jongsu Lee & Chul-Yong Lee, 2009. "A Forecasting Model Incorporating Replacement Purchase: Mobile Handsets in South Korea's Market," TEMEP Discussion Papers 200904, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2009.
    8. Huang, Jian & Leng, Mingming & Liang, Liping, 2012. "Recent developments in dynamic advertising research," European Journal of Operational Research, Elsevier, vol. 220(3), pages 591-609.

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