Abstract:
The Internet has changed the way companies and persons communicate. This paper considers the diffusion of Internet in Chile. Using traditional methods in marketing, particularly the Bass model, the potential number of Internet users and the characteristics of the diffusion process are estimated, in terms of innovation and imitation factors, are estimated. A new methodology, applied to the Bass model, where the coeficients of the model change over time according to a stochastic process, is also presented. The estimation process is carried out with a filter based on simulations. The results show that the diffusion process of Internet in Chile is determined, almost completely, by imitation factors and that this characteristic has changed very little over the last years. On the other hand, the potential number of users has changed during the diffusion process. With data up to the end of 1999, the potential number of users is estimated to be 8 million.