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1. A PARSIMONIOUS EXTENSION OF THE BASS DIFFUSION MODEL FOR CONSUMER DURABLES TO INCORPORATE POPULATION AND INCOME GROWTH.

Author

Mason, Charlotte H. and Srinivasan, V.

Subjects
DURABLE consumer goods, NEW product development, MARKETING strategy, MARKET potential, MARKET saturation
Abstract

We propose a revision to the Bass (1969) model that incorporates effects of income and population growth on market potential without adding parameters. Empirical results show significant improvements in model fit and one-step-ahead forecasts. Furthermore, the classic Bass model underestimates the coefficient of innovation and overestimates the coefficient of imitation. [ABSTRACT FROM AUTHOR]

Published
2024

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