A New Multivariate Product Growth Model

Tinbergen Institute Discussion Paper No. 06-027/4

25 Pages Posted: 27 Mar 2006

See all articles by H. Peter Boswijk

H. Peter Boswijk

Amsterdam School of Economics; Tinbergen Institute

D. Fok

Econometric Institute - Erasmus University Rotterdam; Erasmus Research Institute of Management (ERIM); Tinbergen Institute Rotterdam

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics

Date Written: March 15, 2006

Abstract

To examine cross-country diffusion of new products, marketing researchers have to rely on a multivariate product growth model. We put forward such a model, and show that it is a natural extension of the original Bass (1969) model. We contrast our model with currently in use multivariate models and we show that inference is much easier and interpretation is straightforward. In fact, parameter estimation can be done using standard commercially available software. We illustrate the benefits of our model relative to other models in simulation experiments. An application to a three-country CD sales series shows the merits of our model in practice.

Keywords: Diffusion, international marketing, econometric models

JEL Classification: C39, M31

Suggested Citation

Boswijk, H. Peter and Fok, Dennis and Franses, Philip Hans, A New Multivariate Product Growth Model (March 15, 2006). Tinbergen Institute Discussion Paper No. 06-027/4. Available at SSRN: https://ssrn.com/abstract=892800 or http://dx.doi.org/10.2139/ssrn.892800

H. Peter Boswijk

Amsterdam School of Economics ( email )

Roetersstraat 11
Amsterdam, North Holland 1018 WB
Netherlands

HOME PAGE: http://www.uva.nl/profile/h.p.boswijk

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Dennis Fok (Contact Author)

Econometric Institute - Erasmus University Rotterdam ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1333 (Phone)
+31 10 408 9162 (Fax)

Tinbergen Institute Rotterdam ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Philip Hans Franses

Erasmus University Rotterdam (EUR) - Department of Econometrics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 1278 (Phone)
+31 10 408 9162 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
161
Abstract Views
988
rank
185,767
PlumX Metrics