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A Simultaneous Model For Innovative Product Category Sales Diffusion And Competitive Dynamics, Namwoon Kim, Ellen Bridges, Rajendra Kumar Srivastava

Research Collection Lee Kong Chian School Of Business

Diffusion of innovation has been the focus of an entire stream of research in marketing, and firm entry and exit decisions have been investigated by marketers, strategists, and economists. However, little attention has been paid to the relationship between changing demand and the entry and exit behaviors of competitors in the marketplace. Understanding this relationship is essential in making resource commitments, as profitability of options depends not only on the size and growth of the market, but also on the number of competitors likely to be encountered. This is particularly important in innovative markets, where changes occur rapidly and one …