Online Content

1. Maier, Frank, "Substitution Among Successive Product Generations- An Almost Neglected Problem In Innovation Diffusion Models"

Type:
Document
Date Created:
1996
Collection:
System Dynamic Society Records
Collecting Area:
University Archives
Collection ID:
ua435
Parent Record(s):
227da936724c4223c5a64764d3922694, ca4810593b2703dcaa087957ab13af91, and 23d738ba88f8333bc39725f9cb5bd0b8
Thumbnail Path Ss:
/downloads/70795s25p?file=thumbnail
System Modified Dtsi:
2020-01-02T18:56:44Z
Description:
The spread of an innovation in the market is a highly dynamics process. Management science has developed a plenty of descriptive or normative methods, models and instruments to model this process. The research reaches back to 2960 with the models developed by Fourt/Woodlock, Mansfield and Bass (Fourt/Woodlock 1960; Mansfield 1961; Bass 1969). These models regard the diffusion of an innovation over time as a quasi natural process--like the spread a disease--neglecting variables that allow to control the speed of innovation diffusion through corporate decisions. However, these fundamental models have been the basis for a variety of developments in this particular field. However, only a few of them consider the variety of influencing elements of the innovation diffusion (for an overview on the different models see e.g., Manhajan/Peterson 1985; Mahajan/Muller/Bass 1990:Maier 1995a) They concentrate on one or a combination of some of the decision variables, e.g., some models have been developed to seek for the optimum pricing or advertising strategies. Some models are simple in structure, regarding only monopolistic markets and neglecting important management decision variables. Some models are little more complex, considering oligopolistic or dynamic market structures. However, management decision variables are mostly exogenous inputs into the model, no feedback between management decisions and the spread of a new product in the market, and the success of a product exists.