Models On The Market Diffusion Of Innovation Products And Its Applications

Technology diffusion, technology innovation and knowledge utilization are main factors for economic growth. For developed countries, the diffusion and innovation are equal important for growth; for developing countries, the effect of diffusion to growth is far bigger than one of innovation. Therefore, on study of technology is very important with not only normative, methods but also empirical methods.Technology diffusion includes innovation diffusions of production and process. During the development process of technological products, the marketing of product is usually the most costly, dangerous and management-needed. Thus, the factors affect the adoption and diffusion of products becomes a need studied problem. And marketing must be suitable to the diffusion process of innovation products. Accordingly, this paper focuses on the diffusion problem of innovation product, especially focuses on the models of the market diffusion of innovation products.The paper analyzes the diffusion process of innovation product and the factors affecting the process with dynamic methods. Then the paper builds the models for innovation diffusion process by considering the main factors affectinginnovation production diffusion, i.e. price change, advertising and place. Firstly, the single product diffusion models are classified into first purchase models and repeat purchase models. The models are expanded with two directions: the one side is the multi-product diffusion models which are classified into competition diffusion models, complementary diffusion modes, and contingent diffusion models; the other side is the models for consideration of stage character of diffusion, seasonal factors and heterogeneity of customs. Thus the paper builds the models systems of diffusion of innovation product incorporating marketing strategies. This model systems can represent the diffusion process of innovation production systematically, which includes introduction time of the production, stage character of diffusion, seasonal factors, use life of production, lagged time of Experience and heterogeneity of customs.On the basis of above diffusion models, the paper discusses the optimal control model of closed-loop price strategy. Those models include not only first purchase pricing models and repeat purchase pricing models, but also competition pricing diffusion models and complementary pricing diffusion models. For specified pricing strategy, the paper also presents optimal control model systems for introduction time of product. Then the paper analyzes the effect of feedback strategies and competition strategies for skimming pricing and penetration pricing. The paper also builds the dynamical systems of price change and innovation adoptions, and shows the equilibrium of the market and corresponding stability analysis.The paper discusses promotion strategies based on the same diffusion models. Firstly, the paper discusses the optimal control model of closed-loop advertising strategy. Those models include not only single diffusion models, but also competition case and complementary case. The complementary advertising models show the theoretical basis of complementary marketing. The paper also builds optimal control models of closed-loop price-advertising strategies with specified price strategies. Secondly, the paper studies the product sampling with the specified price strategies. The paper presents various promotion models, and analyzesthe sampling with the simulation methods.Based on the same diffusion models, the paper builds optimal control models for mixed strategies of price, advertising and place, the models show the theoretical basis of integrated marketing. For e-marketing, the paper presents CA model incorporating marketing strategies, the model can depict stage characters of diffusion process and heterogeneity of consumers. The simulation shows that the results are contingent to the actual sales of innovation products, and shows that the model can be used to forecast the diffusion for innovation products. After the analysis of the model, the paper presents some directions to build the models which are more suitable to the actual process of innovation products.On the empirical study of market models of innovation production diffusion, the paper discusses the internet users firstly. The paper discusses the relations between the diffusion models based on the production and the diffusion models based on the consumers. The errors of the results are very small, then the paper gives some predictions of internet adoptions. Secondly, the paper analyzes PLC with the help of the diffusion model of innovation production. And the paper shows the structures of supply chain on the basis of market models of innovation production.Considering the complexity of diffusion model systems of innovation production, the paper presents software functions of the diffusion models of innovation production incorporating marketing strategies, namely EBASS software. After the analysis of development ideas for the software, the paper put forwards a way to solve the data dilemma by using Industrial data and meta-data. Then the paper show the structures of marketing DSS based on the market models of innovation production, especially discusses the functions and design ideas of the DSS.