Specifying competitive effects in diffusion models: An empirical analysis

Abstract

The objectives of this research are to provide a systematic analysis of alternative specifications of brand-level first purchase diffusion models, and to empirically assess within a product category the relative success of these models to explain trial dynamics. In particular, this analysis addresses the issues of (1) the impact of competitive marketing mix variables and (2) the functional form of the diffusion process. While such issues have received substantial attention in the literature for existing or newly launched brands in mature categories (e.g., in the area of market share models), these areas are relatively under-researched for new products in new categories which are undergoing a diffusion process. © 1994.