Taking a Ride on Mature Carrier Products to Push a New Technology: The Diffusion of Add-Ons

Orbach Yair (), Fruchter Gila E. () and Varsano Naor ()
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Orbach Yair: Economics, Bar-Ilan University, Max and Anna Web, Ramat Gan52900, Israel
Fruchter Gila E.: School of Business Administration, Bar-Ilan University, Ramat Gan, Israel
Varsano Naor: School of Business Administration, Bar-Ilan University, Ramat Gan, Israel

Review of Marketing Science, 2019, vol. 17, issue 1, 23-46

Abstract: This paper introduces a model for the diffusion of add-ons that consist of new industrial technologies embedded in mature products. These new technologies are targeted to improve attributes such as the performance, convenience, safety, etc., of the carrier product that incorporates them. Although the rationale for the purchase of the carrier product is driven primarily by mature market factors such as physical wear-out or changing personal needs, the innovative technologies embedded in the design of these products and the advantages they offer provide a competitive edge to the brands that incorporate them. We examine the potential growth of the market share of products that incorporate new technologies within this overall carrier market. We apply our model to the diffusion of green buildings that incorporate better thermal insulation through the use of new materials. For this purpose, we draw on surveys and industry data to estimate the parameters of the model.

Keywords: diffusion; add-ons; carrier product; green products; green buildings; design (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1515/roms-2019-0042

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