Information diffusion and new product consumption: A bass model application to tourism facility management

James Po-Hsun Hsiao, Chyi Jaw and Tzung-Cheng Huan

Journal of Business Research, 2009, vol. 62, issue 7, 690-697

Abstract: This article applies models to measure and to understand how information diffusion influences tourists' consumption patterns. The study uses administrative data on a new festival's attendance and advertising. Bass's [Bass FM. A new product growth for model consumer durables. Manage Sci 1969;15(5):215-227] model and a modified version [Horsky D, Simon LS. Advertising and the diffusion of new products. Mark Sci 1983;2(1):1-18] to allow for advertising's effect. Results imply effectiveness of front loaded advertising. This result is due to increasing purchases that result from word-of-mouth information diffusion. However, a model with an effect of advertising is accepted as well as a model with no consideration of advertising budget. Examination of consistency and conceptual issues with models raises the need for models that are more realistic for the tourism product. A specific concern is developing models appropriate to analysis of attendance at a limited-duration innovative event (e.g., new product) held at a host to impact longer-term attendance of the host.

Keywords: New; product; Diffusion; models; Advertising; effectiveness; Bass; modeling; Tourism; Taiwan (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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