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Introduction Strategy for New Products with Positive and Negative Word-of-Mouth

Author

Listed:
  • Vijay Mahajan

    (Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275)

  • Eitan Muller

    (Business School, Hebrew University of Jerusalem, Jerusalem 91905, Israel)

  • Roger A. Kerin

    (Edwin L. Cox School of Business, Southern Methodist University, Dallas, Texas 75275)

Abstract

Existing innovation diffusion models assume that individual experience with the product is always communicated positively through word-of-mouth. For certain innovations, however, this assumption is tenuous since communicators of the product experience may transfer favorable, unfavorable, or indifferent messages through word-of-mouth. This paper examines a diffusion model for products in which negative information plays a dominant role, discusses its implications for optimal advertising timing policy and presents an application to forecast attendance for the movie Gandhi in the Dallas area.

Suggested Citation

  • Vijay Mahajan & Eitan Muller & Roger A. Kerin, 1984. "Introduction Strategy for New Products with Positive and Negative Word-of-Mouth," Management Science, INFORMS, vol. 30(12), pages 1389-1404, December.
    • Handle: RePEc:inm:ormnsc:v:30:y:1984:i:12:p:1389-1404
    DOI: 10.1287/mnsc.30.12.1389
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