This article covers meaning & overview of Bass Diffusion Model from marketing perspective.
The probability of new adaptors using the products is given by the equation as-
P (t) =p + q/M (N (t))
Where, M is the market potential, p is the coefficient of advertising affect, q is the coefficient of imitation and N (t) is the cumulative number of existing users (adapters) of the product.
This model works on the theory that for any new product in the market, advertising affects the most in bringing in new customers but that is true only up to a certain point. After that, it’s the word of mouth which plays the role of enticing potential customers to start trying and adapting the product.
This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
What is MBA Skool?About Us
MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals.
Business Courses
Quizzes & Skills
Quizzes test your expertise in business and Skill tests evaluate your management traits
Related Content
All Business Sections
Write for Us