An initial and repeat purchase legit model for multi-generation technological product markets

Kim, N and Srivastava, R K and Jan, H K (1999) An initial and repeat purchase legit model for multi-generation technological product markets. In: Proceedings of the 32nd Annual Hawaii International Conference on Systems Sciences. 1999. HICSS-32. Abstracts and CD-ROM of Full Papers.

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Most new product adoption models have focused on single-generation products. Only recently have researchers begun to focus on the importance of analyzing the consumers' purchase demand in multi-generation products. This paper proposes a model that incorporates both initial and repeat purchases, and allows for leap-frogging behavior in multigeneration technological product markets. Whereas most new product adoption models are based on aggregate market sales, the proposed model is estimated and validated on individual purchase data. Within a logistical modeling framework our model combines purchase incidence (buy/not buy) component and brand (or "generation") choice components for each time period. These model components allow for individual heterogeneity. Purchase probabilities for buyers are captured as a function of purchase history, buyer expectations of future generations, and preferences of the currently available options. The proposed model is quite parsimonious. It requires relatively simple data for estimation. It is empirically tested using individual-level purchase data from an illustrative pilot study in the multi-generation personal computer market. The model fits and explains the individual purchase behavior reasonably well.

Item Type: Conference or Workshop Item (Paper)
Additional Information: The research paper was published by the author with the affiliation of Hong Kong Univ of Science &, Technology
Subjects: Marketing
Date Deposited: 03 May 2019 10:47
Last Modified: 03 May 2019 10:47

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