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Some Problems in using Diffusion Models for New Products

Author

Listed:
  • Irwin Bernhardt

    (University of Waterloo)

  • Kenneth D. Mackenzie

    (University of Kansas and University of Waterloo)

Abstract

This paper analyzes some of the problems involved in using diffusion models to formulate marketing strategies for introducing new products. Though future work in this area appears justified, there are many unresolved problems which limit application. First, there is no theory for adoption and diffusion processes. Such a theory is outlined in this paper. Secondly, the present models are too restrictive and do not include the variables that a marketing manager has at his disposal. Six models which remove some of the theoretical and methodological restrictions are therefore presented. The marketing implications of the assumptions in the models are discussed.

Suggested Citation

  • Irwin Bernhardt & Kenneth D. Mackenzie, 1972. "Some Problems in using Diffusion Models for New Products," Management Science, INFORMS, vol. 19(2), pages 187-200, October.
  • Handle: RePEc:inm:ormnsc:v:19:y:1972:i:2:p:187-200
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    File URL: http://dx.doi.org/10.1287/mnsc.19.2.187
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    Cited by:

    1. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    2. Crompton, Paul, 2001. "The diffusion of new steelmaking technology," Resources Policy, Elsevier, vol. 27(2), pages 87-95, June.
    3. Hsiao, James Po-Hsun & Jaw, Chyi & Huan, Tzung-Cheng, 2009. "Information diffusion and new product consumption: A bass model application to tourism facility management," Journal of Business Research, Elsevier, vol. 62(7), pages 690-697, July.
    4. Elmar Kiesling & Markus Günther & Christian Stummer & Lea Wakolbinger, 2012. "Agent-based simulation of innovation diffusion: a review," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(2), pages 183-230, June.

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