When giving some away makes sense to jump-start the diffusion process

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dc.contributor.author Lehmann, Donald R.
dc.contributor.author Esteban-Bravo, Mercedes
dc.date.accessioned 2010-03-15T12:41:30Z
dc.date.accessioned 2010-05-17T13:49:58Z
dc.date.available 2010-05-17T13:49:58Z
dc.date.issued 2006-12
dc.identifier.bibliographicCitation Marketing Letters, 2006, v. 17, n. 4, pp. 243-254
dc.identifier.issn 0923-0645
dc.identifier.uri http://hdl.handle.net/10016/7338
dc.description.abstract This paper uses an analytical model to examine when it makes sense to provide incentives to innovators to adopt a new product. The model allows for separate segments of innovators and imitators, each of which follows a Bass-type diffusion process. Interestingly “seeding” the market is optimal for a limited range of situations and these do not appear to include those where there is a downturn in sales (chasm) as sales move from the first to the second segment. Research has frequently identified different segments of adopters of new products. Categorizations include innovators vs imitators (Bass, 1969; Rogers, 1995; Mahahan et al., 1990; Im et al., 2003), technophiles vs “normal” people, and business vs consumer users. Further, considerable effort has gone into studying the influence of members of the first group on the second. This paper focuses on when, if ever, it makes sense for a manufacture of a new product to “seed” the market by subsidizing a few early adopters to speed the adoption process. The paper builds on earlier work by Kalish and Lilien (1983) which focused on the impact of widely available government subsidies on the adoption of socially desirable innovations (i.e. alternative energy sources) as well as the work of Jain et al. (1995). Unlike that work, we concentrate on providing subsidies (here free goods) to selective individuals in the context of a model which allows for separate segments of innovators and imitators and nests the standard Bass (1969) model.
dc.format.mimetype text/plain
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Springer
dc.rights ©Springer ; Businees Media
dc.title When giving some away makes sense to jump-start the diffusion process
dc.type article
dc.type.review PeerReviewed
dc.description.status Publicado
dc.relation.publisherversion http://dx.doi.org/10.1007/s11002-006-7942-9
dc.subject.eciencia Economía
dc.identifier.doi 10.1007/s11002-006-7942-9
dc.rights.accessRights openAccess
dc.identifier.publicationfirstpage 243
dc.identifier.publicationissue 4
dc.identifier.publicationlastpage 254
dc.identifier.publicationtitle Marketing Letters
dc.identifier.publicationvolume 17
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