Introduction Strategy for New Products with Positive and Negative Word-of-Mouth

Vijay Mahajan, Eitan Muller and Roger A. Kerin
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Vijay Mahajan: Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275
Eitan Muller: Business School, Hebrew University of Jerusalem, Jerusalem 91905, Israel
Roger A. Kerin: Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275

Management Science, 1984, vol. 30, issue 12, 1389-1404

Abstract: Existing innovation diffusion models assume that individual experience with the product is always communicated positively through word-of-mouth. For certain innovations, however, this assumption is tenuous since communicators of the product experience may transfer favorable, unfavorable, or indifferent messages through word-of-mouth. This paper examines a diffusion model for products in which negative information plays a dominant role, discusses its implications for optimal advertising timing policy and presents an application to forecast attendance for the movie Gandhi in the Dallas area.

Keywords: marketing; new products; diffusion models (search for similar items in EconPapers)
Date: 1984
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:30:y:1984:i:12:p:1389-1404

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