When giving some away makes sense to jump-start the diffusion process

@article{Lehmann2006WhenGS,
  title={When giving some away makes sense to jump-start the diffusion process},
  author={Donald R. Lehmann and Mercedes Esteban-Bravo},
  journal={Marketing Letters},
  year={2006},
  volume={17},
  pages={243-254}
}
  • Donald R. Lehmann, Mercedes Esteban-Bravo
  • Published 2006
  • Business
  • Marketing Letters
  • This paper uses an analytical model to examine when it makes sense to provide incentives to innovators to adopt a new product. The model allows for separate segments of innovators and imitators, each of which follows a Bass-type diffusion process. Interestingly “seeding” the market is optimal for a limited range of situations and these do not appear to include those where there is a downturn in sales (chasm) as sales move from the first to the second segment. 

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