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Diffusion model

Images

The big picture

In 1969, Frank Bass introduced his diffusion model, or innovation adaptation model. The model forecasts how the market will adopt the introduction of a new product, innovation or technology. Competition is seen as either competing innovators or imitators: they will either compete with their own innovations or imitate (copy) the innovation (Figure 52.1).

When to use it

When introducing new products, technologies and/or innovations, the Bass diffusion model is very helpful in forecasting their adoption by the market. The model is especially useful for sales and technology forecasting of new products.

Despite ...

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