Modelling fluctuating market size based adoption of technological products: an alternative formulation

Customers in the ever-changing digital advanced marketplace often demonstrate unpredictable behaviours that can significantly impact the potential market size. Some satisfied customers may exhibit loyalty and choose to repurchase the product, while others may be driven by indecision and impatience, resulting in lost sales. These contrasting actions of repeat purchasing and balking behaviour can result in fluctuating market size, underscoring the importance of considering such scenarios when studying technological adoption models. The authors have proposed an alternative formulation of the innovative technological product adoption model to address these ever-changing market dynamics. Notably, this formulation simultaneously accounts for customers' balking and repurchasing behaviour. By incorporating these factors, managers can gain insights into predicting market performance amidst fluctuations and navigate market volatility more effectively. The proposed alternative formulation is validated using real-life datasets and the obtained results support its practical application in predicting market outcomes. These findings lend credibility to the application of the alternative formulation, empowering managers with the means to anticipate and adapt to market fluctuations with greater precision.