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Studying product diffusion based on market coverage

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Abstract

Market coverage is an important attribute for determining the success of a product. The larger the market covered by a product is, the higher the amount of sales for that product will be. Market coverage strategies thus contribute to the success of a product in tapping the market. In this study, we emphasize the impact of market coverage on the rate of adoption in determining product sales. New product diffusion models based on the market covered are proposed. A methodological approach of weighted criteria is implemented to evaluate and rank the proposed models. The analysis is conducted on real-life sales datasets.

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Abbreviations

N(t):

is the cumulative number of adopters until time ‘t’

m :

is the potential market size

c(t):

is the percentage of market captured until time ‘t’

b :

is the rate of adoption

β :

is the learning parameter

k :

is the shape parameter

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Acknowledgments

The research work presented in this paper was supported by grants to the first author from DST through DST PURSE phase II, India. The authors sincerely thank the reviewer for suggesting important changes that resulted in a complete revision of the article.

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Authors and Affiliations

  1. Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi, Room No. 207, 2nd Floor, Delhi, 110007, India

    Adarsh Anand, Mohini Agarwal & Gunjan Bansal

  2. Division of Operation and Maintenance Engineering, Luleå University of Technology, Luleå, Sweden

    A. H. S. Garmabaki

Authors
  1. Adarsh Anand
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  2. Mohini Agarwal
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  3. Gunjan Bansal
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  4. A. H. S. Garmabaki
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Correspondence to Adarsh Anand.

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Anand, A., Agarwal, M., Bansal, G. et al. Studying product diffusion based on market coverage. J Market Anal 4, 135–146 (2016). https://doi.org/10.1057/s41270-016-0005-z

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  • DOI: https://doi.org/10.1057/s41270-016-0005-z

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