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When giving some away makes sense to jump-start the diffusion process

Donald Lehmann () and Mercedes Esteban-Bravo ()

Marketing Letters, 2006, vol. 17, issue 4, 243-254

Abstract: This paper uses an analytical model to examine when it makes sense to provide incentives to innovators to adopt a new product. The model allows for separate segments of innovators and imitators, each of which follows a Bass-type diffusion process. Interestingly “seeding” the market is optimal for a limited range of situations and these do not appear to include those where there is a downturn in sales (chasm) as sales move from the first to the second segment. Copyright Springer Science + Business Media, LLC 2006

Date: 2006
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DOI: 10.1007/s11002-006-7942-9

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