Is there more to international Diffusion than Culture? An investigation on the Role of Marketing and Industry Variables
Companies employ international diffusion models to assess the local market potential and local diffusion speed to support their decision making on market entry. After their entry into a country, they use the model forecasts for their performance controlling. To this end, empirical applications of international diffusion models aim to link differential diffusion patterns across countries to various exogenous drivers. In the literature, macro- and socioeconomic variables like population characteristics, culture, economic development, etc. have been linked to differential penetration developments across countries. But as companies cannot influence these drivers, their marketing decisions that shape national diffusion patterns are ignored. Is this reasonable? What then, is the role of marketing instruments in an international diffusion context? We address this issue and compare the influence of these prominent exogenous drivers of international diffusion with that of industry and marketing-mix variables. To account for all of these factors and simultaneously accommodate the influence of varying cross-country interactions, we develop a more flexible yet parsimonious model of international diffusion. Finally, to avoid technical issues in implementing spatially dependent error terms we introduce the test concept of Moran's I to international diffusion model. We demonstrate that the lead-lag effect in conjunction with spatial neighborhood effects controls most of the spatial autocorrelation. Using this combined approach we find that --- for cellulars --- industry and marketing-mix variables explain international diffusion patterns better than macro- and socioeconomic drivers.
|Date of creation:||2008|
|Contact details of provider:|| Postal: Düsternbrooker Weg 120, 24105 Kiel / Neuer Jungfernstieg 21, 20354 Hamburg|
Phone: +49 431 8814-1
Fax: +49 431 8814-520
Web page: http://www.econstor.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anita Elberse & Jehoshua Eliashberg, 2003. "Demand and Supply Dynamics for Sequentially Released Products in International Markets: The Case of Motion Pictures," Marketing Science, INFORMS, vol. 22(3), pages 329-354.
- Ernst R. Berndt & Robert S. Pindyck & Pierre Azoulay, 2003.
"Consumption Externalities and Diffusion in Pharmaceutical Markets: Antiulcer Drugs,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 51(2), pages 243-270, 06.
- Ernst R. Berndt & Robert S. Pindyck & Pierre Azoulay, 2000. "Consumption Externalities and Diffusion in Pharmaceutical Markets: Antiulcer Drugs," NBER Working Papers 7772, National Bureau of Economic Research, Inc.
- Gruber, Harald & Verboven, Frank, 2001. "The evolution of markets under entry and standards regulation -- the case of global mobile telecommunications," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1189-1212, July.
- GRUBER, Harald & VERBOVEN, Frank, "undated". "The evolution of markets under entry and standards regulation - The case of a global mobile telecommunications," Working Papers 1999038, University of Antwerp, Faculty of Applied Economics.
- Gruber, Harald & Verboven, Frank, 2000. "The Evolution of Markets Under Entry and Standards Regulation - The Case of Global Mobile Telecommunications," CEPR Discussion Papers 2440, C.E.P.R. Discussion Papers.
- Francesco Caselli & Wilbur John Coleman, 2001. "Cross-Country Technology Diffusion: The Case of Computers," American Economic Review, American Economic Association, vol. 91(2), pages 328-335, May.
- Caselli, Francesco & Coleman II, Wilbur John, 2001. "Cross-Country Technology Diffusion: The Case of Computers," CEPR Discussion Papers 2744, C.E.P.R. Discussion Papers.
- Francesco Caselli & Wilbur John Coleman II, 2001. "Cross-Country Technology Diffusion: The Case of Computers," NBER Working Papers 8130, National Bureau of Economic Research, Inc.
- Chakravarthi Narasimhan, 1989. "Incorporating Consumer Price Expectations in Diffusion Models," Marketing Science, INFORMS, vol. 8(4), pages 343-357.
- Littlechild, S.C., 0. "Mobile termination charges: Calling Party Pays versus Receiving Party Pays," Telecommunications Policy, Elsevier, vol. 30(5-6), pages 242-277, June.
- Richard Perkins & Eric Neumayer, 2004. "The international diffusion of new technologies: a multi-technology analysis of latecomer advantage and global economic integration," Development and Comp Systems 0407001, EconWPA, revised 01 Jul 2004.
- David C. Schmittlein & Vijay Mahajan, 1982. "Maximum Likelihood Estimation for an Innovation Diffusion Model of New Product Acceptance," Marketing Science, INFORMS, vol. 1(1), pages 57-78.
- Bart J. Bronnenberg & Vijay Mahajan, 2001. "Unobserved Retailer Behavior in Multimarket Data: Joint Spatial Dependence in Market Shares and Promotion Variables," Marketing Science, INFORMS, vol. 20(3), pages 284-299, October.
- V. Kumar & Trichy V. Krishnan, 2002. "Multinational Diffusion Models: An Alternative Framework," Marketing Science, INFORMS, vol. 21(3), pages 318-330, July.
- Teng, Jinn-Tsair & Thompson, Gerald L., 1996. "Optimal strategies for general price-quality decision models of new products with learning production costs," European Journal of Operational Research, Elsevier, vol. 93(3), pages 476-489, September.
- Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
- Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc.
- Keller, Wolfgang, 2001. "Geographic Localization of International Technology Diffusion," CEPR Discussion Papers 2706, C.E.P.R. Discussion Papers.
- Ramya Neelamegham & Pradeep Chintagunta, 1999. "A Bayesian Model to Forecast New Product Performance in Domestic and International Markets," Marketing Science, INFORMS, vol. 18(2), pages 115-136.
- Dipak C. Jain & Eitan Muller & Naufel J. Vilcassim, 1999. "Pricing Patterns of Cellular Phones and Phonecalls: A Segment-Level Analysis," Management Science, INFORMS, vol. 45(2), pages 131-141, February.
- Hermann Simon & Karl-Heinz Sebastian, 1987. "Diffusion and Advertising: The German Telephone Campaign," Management Science, INFORMS, vol. 33(4), pages 451-466, April.
- Antonelli, Cristiano, 1986. "The international diffusion of new information technologies," Research Policy, Elsevier, vol. 15(3), pages 139-147, June.
- Hodge, James, 2005. "Tariff structures and access substitution of mobile cellular for fixed line in South Africa," Telecommunications Policy, Elsevier, vol. 29(7), pages 493-505, August.
- Debabrata Talukdar & K. Sudhir & Andrew Ainslie, 2002. "Investigating New Product Diffusion Across Products and Countries," Marketing Science, INFORMS, vol. 21(1), pages 97-114, February.
- Dekimpe, M.G. & Parker, P.M. & Sarvary, M., 1997. ""Globalization": Modeling Technology Adoption Timing Across Countries," INSEAD 97/75, INSEAD, Centre for the Management of Environmental Resources. The European Institute of Business Administration..
- Hubert Gatignon & Jehoshua Eliashberg & Thomas S. Robertson, 1989. "Modeling Multinational Diffusion Patterns: An Efficient Methodology," Marketing Science, INFORMS, vol. 8(3), pages 231-247.
- Christophe Van den Bulte & Gary L. Lilien, 1997. "Bias and Systematic Change in the Parameter Estimates of Macro-Level Diffusion Models," Marketing Science, INFORMS, vol. 16(4), pages 338-353.
- Christophe Van den Bulte & Stefan Stremersch, 2004. "Social Contagion and Income Heterogeneity in New Product Diffusion: A Meta-Analytic Test," Marketing Science, INFORMS, vol. 23(4), pages 530-544, July.
- Islam, Towhidul & Fiebig, Denzil G. & Meade, Nigel, 2002. "Modelling multinational telecommunications demand with limited data," International Journal of Forecasting, Elsevier, vol. 18(4), pages 605-624.
- Paulo Albuquerque & Bart J. Bronnenberg & Charles J. Corbett, 2007. "A Spatiotemporal Analysis of the Global Diffusion of ISO 9000 and ISO 14000 Certification," Management Science, INFORMS, vol. 53(3), pages 451-468, March.
- Islam, Towhidul & Fiebig, Denzil G, 2001. "Modelling the Development of Supply-Restricted Telecommunications Markets," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 20(4), pages 249-264, July.
- Minges, Michael, 1999. "Mobile cellular communications in the Southern African region," Telecommunications Policy, Elsevier, vol. 23(7-8), pages 585-593, August.
- Eric Bradlow & Bart Bronnenberg & Gary Russell & Neeraj Arora & David Bell & Sri Duvvuri & Frankel Hofstede & Catarina Sismeiro & Raphael Thomadsen & Sha Yang, 2005. "Spatial Models in Marketing," Marketing Letters, Springer, vol. 16(3), pages 267-278, December.
- Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
- Dipak Jain & Vijay Mahajan & Eitan Muller, 1991. "Innovation Diffusion in the Presence of Supply Restrictions," Marketing Science, INFORMS, vol. 10(1), pages 83-90.
- Barrantes, Roxana & Galperin, Hernan, 2008. "Can the poor afford mobile telephony? Evidence from Latin America," Telecommunications Policy, Elsevier, vol. 32(8), pages 521-530, September.
- Harald Gruber, 1998. "The diffusion of innovations in protected industries: the textile industry," Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 77-83.
- John H. Roberts & Charles J. Nelson & Pamela D. Morrison, 2005. "A Prelaunch Diffusion Model for Evaluating Market Defense Strategies," Marketing Science, INFORMS, vol. 24(1), pages 150-164, August.
- Venkatesan, Rajkumar & Kumar, V., 2002. "A genetic algorithms approach to growth phase forecasting of wireless subscribers," International Journal of Forecasting, Elsevier, vol. 18(4), pages 625-646.
- Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
- Gruber, H. & Verboven, F.L., 1998. "The Diffusion of Mobile Telecommunications Services in the European Union," Discussion Paper 1998-138, Tilburg University, Center for Economic Research.
- Gruber, Harald & Verboven, Frank, 1999. "The Diffusion of Mobile Telecommunications Services in the European Union," CEPR Discussion Papers 2054, C.E.P.R. Discussion Papers.
- Lucke, Matthias, 1993. "The diffusion of process innovations in industrialized and developing countries: A case study of the world textile and steel industries," World Development, Elsevier, vol. 21(7), pages 1225-1238, July.
- Jain, Dipak C & Rao, Ram C, 1990. "Effect of Price on the Demand for Durables: Modeling, Estimation, and Findings," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(2), pages 163-170, April.
- Bruce Robinson & Chet Lakhani, 1975. "Dynamic Price Models for New-Product Planning," Management Science, INFORMS, vol. 21(10), pages 1113-1122, June.
- Desiraju, Ramarao & Nair, Harikesh S. & Chintagunta, Pradeep, 2004. "Diffusion of New Pharmaceutical Drugs in Developing and Developed Nations," Research Papers 1950, Stanford University, Graduate School of Business.
- van den Bulte, C. & Stremersch, S., 2003. "Contagion and heterogeneity in new product diffusion: An emperical test," ERIM Report Series Research in Management ERS-2003-077-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 University Rotterdam.
- S. Weerahandi & S. R. Dalal, 1992. "A Choice-Based Approach to the Diffusion of a Service: Forecasting Fax Penetration by Market Segments," Marketing Science, INFORMS, vol. 11(1), pages 39-53. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:27678. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.