IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v10y1991i1p83-90.html
   My bibliography  Save this article

Innovation Diffusion in the Presence of Supply Restrictions

Author

Listed:
  • Dipak Jain

    (Northwestern University)

  • Vijay Mahajan

    (University of Texas at Austin)

  • Eitan Muller

    (Tel-Aviv University)

Abstract

Innovation diffusion models are developed to represent the spread of a new product from its manufacturer(s) to its ultimate users. In the marketplace, however, the growth of a new product can be retarded by supply restrictions such as the unavailability of the product due to limitations on the production capacity or difficulties encountered in setting up distribution systems. In the presence of supply restrictions, diffusion models must be developed to capture the dynamics of supply restrictions and to allow management to evaluate the impact of such supply restrictions on the growth of a new product in the market place. Based on the Bass innovation diffusion model, the objective of this paper is to suggest a parsimonious diffusion model that integrates the demand side dynamics with the supply side restrictions. The sensitivity of innovation diffusion patterns in the presence of supply restrictions is examined. An application examining the diffusion of new telephones in Israel is documented to illustrate the usefulness of the proposed model.

Suggested Citation

  • Dipak Jain & Vijay Mahajan & Eitan Muller, 1991. "Innovation Diffusion in the Presence of Supply Restrictions," Marketing Science, INFORMS, vol. 10(1), pages 83-90.
    • Handle: RePEc:inm:ormksc:v:10:y:1991:i:1:p:83-90
    DOI: 10.1287/mksc.10.1.83
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.10.1.83
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.10.1.83?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    new products; forecasting;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:10:y:1991:i:1:p:83-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.