Modeling technology diffusion: a study based on market coverage and advertising efforts

摘要

The present research recommends a value-based diffusion model to examine the pragmatic demand for technology products. Diffusion process describes the advancement of a technology over time that results from individual buying decisions. The aim of this study is to measure the sales volume of innovations centering on the market coverage strategy and expenditure on advertising outlay. Market coverage is the evaluation of the marketplace and subsequent determination of how much of the marketplace the firm should cover with their advertisement for a specific commodity. In this research, a diffusion process is modeled by integrating market coverage strategy and advertising intensity to forecast factual sales level of technology innovations. The applicability of the proposed models is established using quantitative validation on the actual sales data sets of consumer durable products. The proposed model is further compared with the conventional diffusion models. Findings of the empirical analysis exemplify that the developed model predicts the diffusion behavior of technology products quite well.