Strategic innovation diffusion converts newly created knowledge into increasing a firm’s value primarily through innovative product offerings.In this paper,we present a time-based adoption pattern with pricing and pr...Strategic innovation diffusion converts newly created knowledge into increasing a firm’s value primarily through innovative product offerings.In this paper,we present a time-based adoption pattern with pricing and promotional expenditure as a three-dimensional innovation diffusion model(3D-IDM).In our proposed 3D-IDM,we assume that value of the product plays a crucial role of being the major driver of diffusion,and is classified into the following three main factors:(1)continuation time of the product in the market–representing goodwill of the product;(2)price of the product–indicating consumers’buying behaviour;and(3)marketing efforts of the firm.A special form of the Cobb–Douglas production function is used to design the three-dimensional framework.An empirical study is performed on number of consumer-durable sales data to validate and compare the proposed model.Various performance measures are treated uniquely using the Mahalanobis distance-based approach(DBA)to determine the relative strength of each model.展开更多
文摘Strategic innovation diffusion converts newly created knowledge into increasing a firm’s value primarily through innovative product offerings.In this paper,we present a time-based adoption pattern with pricing and promotional expenditure as a three-dimensional innovation diffusion model(3D-IDM).In our proposed 3D-IDM,we assume that value of the product plays a crucial role of being the major driver of diffusion,and is classified into the following three main factors:(1)continuation time of the product in the market–representing goodwill of the product;(2)price of the product–indicating consumers’buying behaviour;and(3)marketing efforts of the firm.A special form of the Cobb–Douglas production function is used to design the three-dimensional framework.An empirical study is performed on number of consumer-durable sales data to validate and compare the proposed model.Various performance measures are treated uniquely using the Mahalanobis distance-based approach(DBA)to determine the relative strength of each model.
