An empirical analysis on the diffusion of the local telephone diffusion in China

Abstract

Various new product innovation diffusion models have been constructed to explore the principles of innovation diffusion. Most of them assume that the potential is dynamical and the price or advertising will influence the diffusion rate and the market potential. However, few of them acknowledge the fact that the population is increasing and the members of different colonies, which have different attitudes of risk and decisive patterns, are transferring between each other. In this research we concentrate on developing a dynamical rate model for innovation diffusion with the influencing factors shown above. With the data of telephone subscribers of urban and rural areas in China, we make an empirical analysis and find this model is more effective to show the process of innovation diffusion with the condition of the urbanization process. © Springer-Verlag 2010.