Donald Lehmann

When Giving Some Away Makes Sense to Jump-Start the Diffusion Process

Coauthor(s): Mercedes Esteban-Bravo.

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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.

Source: Marketing Letters
Exact Citation:
Lehmann, Donald, and Mercedes Esteban-Bravo. "When Giving Some Away Makes Sense to Jump-Start the Diffusion Process." Marketing Letters 17:4 (December 2006): 243-54.
Volume: 17:4
Pages: 243-54
Date: 12 2006