Strategy Dynamics Briefing 20: The Bass Diffusion Model

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We have discussed how resources drive or hold back each others’ growth rates, and the idea that the level of a resource may affect its own development.

A particularly common framework arises when the saturation of a limited opportunity combines with word-of-mouth between already active customers and potential customers. This captures well how new products diffuse into a market, a process first set out by Professor Frank Bass1 hence the framework’s title.

Although initially focused on how durable products are adopted (products ...

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