Marketing-Mix Variables and the Diffusion of Successive Generations of a Technological Innovation

Research addressing the diffusion of successive generations of technological innovations has generally ignored the impact of marketing-mix variables. As a result, there have been several calls for the development of multiple-generation models that incorporate marketing-mix variables. The authors dev...

Full description

Saved in:
Bibliographic Details
Published in:Journal of marketing research 2001-11, Vol.38 (4), p.501-514
Main Authors: Danaher, Peter J., Bruce G. S. Hardie, Putsis, William P.
Format: Article
Language:English
Subjects:
Cell phones
Cellular telephones
Coefficients
Consumers
Digital technology
Growth rate
Innovations
Market prices
Marketing
Marketing mixes
Modeling
Parametric models
Price elasticity
Pricing strategies
Product development
Product lines
Random access memory
Research Notes and Communications
Sales
Satellite television
Statistical analysis
Studies
Subscriptions
Technological change
Technological innovation
Variables
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Research addressing the diffusion of successive generations of technological innovations has generally ignored the impact of marketing-mix variables. As a result, there have been several calls for the development of multiple-generation models that incorporate marketing-mix variables. The authors develop a model of first-time sales and subscriptions for successive generations of a technological innovation, which explicity captures the effects of marketing-mix variables through a proportional hazards framework. The empirical analysis estimates the impact of price for two generations of cellular telephones in a European country. The results suggest that there are important substantive insights to be gained from the parameter estimates for this marketing-mix variable when intergenerational interdependencies are considered. For example, although the time path of the estimated price elasticities in a multiple-generation setting closely follows those reported previously for single generations, the authors find evidence of an important interaction in price response across generations. Therefore, empirical estimates in single-generation models may be missing an important part of the pricing equation.
ISSN:0022-2437
1547-7193
DOI:10.1509/jmkr.38.4.501.18907