The role of seeding in multi-market entry

Libai, Barak; Muller, Eitan; Peres, Renana

doi:10.1016/j.ijresmar.2005.09.004

Cited by 67 publications

(48 citation statements)

References 43 publications

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“…They are increasingly used in the social sciences to model social processes such as diffusion, collective action, and group influence (Smith & Conrey, 2007;Macy & Willer, 2002) as well as economic activity in general (Tesfatsion, 2003). They are also increasingly used in the marketing literature, particularly with respect to new product growth (Delre, 2007;Goldenberg , 2007;Shaikh, Rangaswamy & Balakrishnan, 2006;Garcia, 2005;Libai, Peres & Muller, 2005). Cellular automata modeling is an agent-based modeling technique that has been extensively used across disciplines to model social-based phenomena.…”

Section: An Agent-based Model (Abm) Of Network Good Growthmentioning

confidence: 99%

The chilling effects of network externalities

Goldenberg

Libai

Muller

2010

International Journal of Research in Marketing

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191

132

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Conventional wisdom suggests that network effects should drive faster market growth due to the bandwagon effect. However, as we show, network externalities may also create an initial slowdown effect on growth because potential customers wait for early adopters, who provide them with more utility, before they adopt. In this study, we explore the financial implications of network externalities by taking the entire network process into account. Using an agent-based as well as an aggregate-level model, and separating network effects from word of mouth, we find that network externalities have a substantial chilling effect on the net present value associated with new products. This effect may occur not only in a competitive framework, such as a competing standards scenario, but also in the absence of competition. Drawing on the collective action literature in order to relate network effects to individual consumer threshold levels, we find that the chilling effect is stronger with a small variability in the threshold distribution, and is especially affected by the process early on in the product life cycle. We also find a "hockey stick" growth pattern by empirically examining the growth of fax machines, CB radios, CD players, DVD players, and cellular services.

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Section: An Agent-based Model (Abm) Of Network Good Growthmentioning

confidence: 99%

The chilling effects of network externalities

Goldenberg

Libai

Muller

2010

International Journal of Research in Marketing

Self Cite

191

132

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“…At the same time, there has been a steady rise in literature, typically within marketing research, investigating "word-of-mouth" effects on consumer behaviour, introduction of new products, innovations etc. (see for instance, Goldenberg et al (2001), Goldenberg et al (2002), Libai et al (2005)). While the amount of research in this field is understandably large, the present work is one of the first of its kind in examining the 2 See for example, Lal and Rao (1997), Johnson and Myatt (2003) and Dube and Manchanda (2005).…”

Section: Introductionmentioning

confidence: 99%

Dynamics of brand competition: Effects of unobserved social networks

Sengupta¹,

Greetham²

2010

Journal of Economic Dynamics and Control

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Brand competition is modelled using an agent based approach in order to examine the long run dynamics of market structure and brand characteristics. A repeated game is designed where myopic firms choose strategies based on beliefs about their rivals and consumers. Consumers are heterogeneous and can observe neighbor behaviour through social networks. Although firms do not observe them, the social networks have a significant impact on the emerging market structure. Presence of networks tends to polarize market share and leads to higher volatility in brands. Yet convergence in brand characteristics usually happens whenever the market reaches a steady state. Scale-free networks accentuate the polarization and volatility more than small world or random networks.Unilateral innovations are less frequent under social networks.JEL Classification: C63, C73, D21, D43

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“…Also, the Lotka Volterra model [10,11], which was initially used for the competing biological species, is reinterpreted in the terminology of competitive marketing. Recently both ex-* e-mail: gunduc@ankara.edu.tr tended Bass model [9,1214] and the LotkaVolterra model [12,15,16] are used in the studies of diusion of innovation process.…”

Section: Introductionmentioning

confidence: 99%

A Case Study of Diffusion of Innovation under Competition

Gündüç

2018

Acta Phys. Pol. A

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In this work, the aim is to discuss the relative importance of the driving parameters of the diusion of innovation under competition. As a case study the competitive existence of Android and iOS operating systems are modeled in the context of an extended Bass model. The chosen model consists of two coupled dierential equations. Each dierential equation has the same form of the well known Bass equation with an extra term which represents the eect of the existence of the competitor. Since the smartphone sales and usage are globally well documented, publicly available global smartphone market share and sales data are used to determine the model parameter values. The smartphone global market share data spans 28 quarters starting from the rst quarter of 2009. The distribution of the market share in the rst quarter has been used as the initial values of the competing operating systems. A minimization process obtains the free parameters (six in total) of the dierential equations. The values of the parameters are xed by minimizing the dierence between the solution of Bass equation and the smartphone global market share data. The parameter values of iOS and Android operating systems indicate that, on the worldwide scale, the adaptation of new ideas/products the dominantly led by the personal interactions. In fact, through social networks, information ow is immense, and individuals rely on the information obtained directly from a trusted individual. Publicity parameter values indicate that very rarely decision of an individual is formed by only the mass media or publicity. On the contrary, to the publicity parameter, it is observed that the existence of a competitor has a considerable eect on the sales of both parties.

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The role of seeding in multi-market entry

Cited by 67 publications

References 43 publications

The chilling effects of network externalities

The chilling effects of network externalities

Dynamics of brand competition: Effects of unobserved social networks

A Case Study of Diffusion of Innovation under Competition

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