Long-Term View of the Diffusion of Durables: A Study of the Role of Price and Adoption Influence Processes via Tests of Nested Models

Intern. J. of Research in Marketing 5 (1988) 1-13

13 Pages Posted: 26 Apr 2014

See all articles by Wagner A. Kamakura

Wagner A. Kamakura

Rice University

Siva Balasubramanian

Illinois Institute of Technology, Stuart School of Business

Date Written: 1988

Abstract

This paper extends past research on new product diffusion by taking a long-term view of the diffusion process for several consumer durables.

Specifically, we investigate the role of price and adoption influence processes within the product diffusion framework by assessing the relative superiority of competing model specifications belonging to a nested family. Results indicate that price affects the diffusion process only for relatively high-priced goods; further, our analysis suggests that this is achieved through impact on the probability of adoption.

It is also shown that the traditional diffusion model specification (incorporating both external and internal influence) is not always the most adequate representation of the product adoption process.

Suggested Citation

Kamakura, Wagner A. and Balasubramanian, Siva, Long-Term View of the Diffusion of Durables: A Study of the Role of Price and Adoption Influence Processes via Tests of Nested Models (1988). Intern. J. of Research in Marketing 5 (1988) 1-13, Available at SSRN: https://ssrn.com/abstract=2428868

Wagner A. Kamakura (Contact Author)

Rice University ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
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(713) 348-6307 (Phone)

Siva Balasubramanian

Illinois Institute of Technology, Stuart School of Business ( email )

10 W 35th Street, 18th Floor
Chicago, IL 60616
United States
3129066516 (Phone)
3129066549 (Fax)

HOME PAGE: http://www.stuart.iit.edu/about/faculty/siva_balas.shtml

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