Modeling Intercategory and Generational Dynamics for A Growing Information Technology Industry
AbstractPrevious studies dealing with product growth have dealt only with substitution effects among successive generations of one product category and not with complementarity and competition provided by related product categories. Based on a broadened concept of the competitive information technology (IT) market, we develop a dynamic market growth model that is able to incorporate both interproduct category and technological substitution effects simultaneously. The market potential for each category or generation is treated as a variable rather than a constant parameter, which is typical of recently growing IT sectors such as wireless telecommunications. The model is calibrated, its plausibility discussed, and its face and predictive validity assessed using data on wireless telecommunications services from two Asian markets. Results show that the market potential (and sales growth) of one category or generation is significantly affected by others and by the overall structure of a geographic market. The model is shown to make relatively good predictions even when the data from recently introduced categories/generations are limited.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 46 (2000)
Issue (Month): 4 (April)
information technology; wireless telecommunications service; intercategory effects; market potential; asymmetry of effect; bidirectional interrelationship;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Abhik Roy & Jagmohan Raju, 2011. "The influence of demand factors on dynamic competitive pricing strategy: An empirical study," Marketing Letters, Springer, vol. 22(3), pages 259-281, September.
- Franses, Ph.H.B.F. & Hernández-Mireles, C., 2006. "When Should Nintendo Launch its Wii? Insights From a Bivariate Successive Generation Model," ERIM Report Series Research in Management ERS-2006-032-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Chen, Yuwen & Carrillo, Janice E., 2011. "Single firm product diffusion model for single-function and fusion products," European Journal of Operational Research, Elsevier, vol. 214(2), pages 232-245, October.
- Kim, Namwoon & Srivastava, Rajendra K., 2007. "Modeling cross-price effects on inter-category dynamics: The case of three computing platforms," Omega, Elsevier, vol. 35(3), pages 290-301, June.
- Stefan Stremersch & Eitan Muller & Renana Peres, 2010. "Does new product growth accelerate across technology generations?," Marketing Letters, Springer, vol. 21(2), pages 103-120, June.
- Hernández-Mireles, C. & Franses, Ph.H.B.F., 2010. "The Launch Timing of New and Dominant Multigeneration Technologies," ERIM Report Series Research in Management ERS-2010-022-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Chien, Chen-Fu & Chen, Yun-Ju & Peng, Jin-Tang, 2010. "Manufacturing intelligence for semiconductor demand forecast based on technology diffusion and product life cycle," International Journal of Production Economics, Elsevier, vol. 128(2), pages 496-509, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.