Research Insight 6.1

Throughout the textbook reference is made to seminal academic papers (as part of the Research Insights features) that can assist you in the further development of your understanding of a particular concept or theory that has been introduced. Organized by chapter, this resource provides links to these seminal papers.

Please note that your institution will require a subscription to the relevant journal for you to access the full text of the articles. If you are unsure how to do this, please contact your university librarian. Often professional bodies, such as the Chartered Institute of Marketing, also offer access to journals via their library services. Alternatively, you can purchase the articles directly from the source website.

Source: Peres, R.; Muller, E. and Mahajan, V. (2010). ‘Innovation diffusion and new product growth models: A critical review and research directions’, International Journal of Research in Marketing, 27(2), 91-106.

Abstract: The abstract for this paper can be found at the following link:
http://www.sciencedirect.com/science/article/pii/S0167811610000236

Insight: This paper usefully explains that diffusion of new propositions is far more complex and multifaceted because consumers are exposed to a greater range of influences than past works assumes, including word-of-mouth communications, network externalities, and social signalling. The authors discuss how social networking sites are altering the diffusion process (because of online influentials and the presence of online social hubs), how network effects impact upon diffusion (with slow initial growth in diffusion followed by a surge in demand, especially with high technology products as consumers wait and see if a particular technology standard takes off) and, importantly, turning points in diffusion, such as take-offs (when adoption increases exponentially, often as prices are reduced and consumer uncertainty is reduced) and saddles (when demand dips temporarily and increases again, for example, as a result of technological changes or macroeconomic events). Technological generations (where an upgraded proposition is introduced) also impact on diffusion, not least because they encourage existing users to shift to the new proposition, but may also encourage non-users to leapfrog to the new technological standard without having bought the previous incarnation.

URL: http://www.sciencedirect.com/science/article/pii/S0167811610000236