Within-brand and cross-brand word-of-mouth for sequential multi-innovation diffusions

Technological change in the U.S. music industry: Within-product, cross-product and churn effects between competing blockbusters

“…The general model for competition proposed in Guseo and Mortarino (2014), UCRCD, considers a duopoly where two brands entering the market at different times have a market potential that may take different levels: m a , the market potential of the first product in the stand-alone phase, and m c , the global or category potential under competition. The residual market m-z(t) is assumed to be a common target for each competitor, with z(t) = z 1 (t) + z 2 (t) denoting common cumulative sales and z i (t), i = 1, 2 the cumulative sales of product i.…”

“…Among the papers dealing with the issue, we recall Krishnan et al (2000), Savin and Terwiesh (2005), Guseo and Mortarino (2010), Guseo and Mortarino (2012), and Guseo and Mortarino (2013), where competition is modeled as a duopoly after a monopolistic period for the first entrant. In particular, the models proposed in Guseo and Mortarino (2012) and Guseo and Mortarino (2014) consider different entry times and changes in first-product parameters due to competition. The models in Guseo and Mortarino (2014), namely standard UCRCD and unrestricted UCRCD, differ from that in Guseo and Mortarino (2012) in allowing a more general structure of WOM effect where the authors assume that the two products share the same WOM since they are so similar as to be perceived as equal by consumers.…”

“…In particular, the models proposed in Guseo and Mortarino (2012) and Guseo and Mortarino (2014) consider different entry times and changes in first-product parameters due to competition. The models in Guseo and Mortarino (2014), namely standard UCRCD and unrestricted UCRCD, differ from that in Guseo and Mortarino (2012) in allowing a more general structure of WOM effect where the authors assume that the two products share the same WOM since they are so similar as to be perceived as equal by consumers. In Guseo and Mortarino (2014), this assumption is relaxed, and each product is influenced by within-product and cross-product word-of-mouth effects.…”

“…The models in Guseo and Mortarino (2014), namely standard UCRCD and unrestricted UCRCD, differ from that in Guseo and Mortarino (2012) in allowing a more general structure of WOM effect where the authors assume that the two products share the same WOM since they are so similar as to be perceived as equal by consumers. In Guseo and Mortarino (2014), this assumption is relaxed, and each product is influenced by within-product and cross-product word-of-mouth effects. Standard UCRCD exhibits a bivariate closed-form solution that is nonlinear in the parameters.…”

“…In Section 2, we introduce the general modeling for two competing products developed in Guseo and Mortarino (2014). In Section 3, we present a LotkaVolterra model for competition, LVch, which extends previous models by considering partial and asymmetric churn effects in the residual market.…”