Presenting a Diffusion Model for the New Product with the Simultaneous Impact of Price and Advertising

Abstract

One of the important factors for every corporation is to present innovation and new product at the right time. New companies also need to provide timely delivery of goods and plan accurately at the beginning of their activity for reducing their cost. The purpose of this research is to provide strategies for accurate prediction of the sale of new product with consideration of the impacts of various marketing mix characteristics; for this purpose, new product diffusion models have been used in this research. The models presented in this study for prediction of sales and modeling new product diffusion have not been used in Iranian researches. First, various models for the diffusion of new products and their implementation have been explained. Then, due to the weaknesses in the presented models in the context of simultaneous price and cost analysis of advertising, a model is presented that considers prices and advertising simultaneously in the diffusion of new products. These models were run using library data. By examining the coefficient of determination of the diffusion models, it was shown that the model presented in this study is more suitable than the examined models. Finally, by analyzing the sensitivity to price and advertising, the proposed model is more sensitive to changes.