A Theory of Market Behavior After Innovation

George H. Haines

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Consumer Market Behavior and Pricing Innovation Diffusion and Forecasting Consumer Behavior and Market Dynamics

Abstract

This paper is a report of a study of innovation of consumer nondurable products. A simple hypothesis about consumer behavior in short run, non-equilibrium situations is presented. Following classical economic methodology, the behavior of individuals is then aggregated. This aggregate equation form is tested and shown to be not rejected by the data. The effect of marketing actions of the firm upon consumer behavior is also explored.

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References

1950Uncertainty, Evolution, and Economic Theory 1976Early Prediction of Market Success for New Grocery Products 1976Brand Choice as a Probability Process

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1983Formal Choice Models in Marketing 1982Dynamic Analysis of Consumer Response to Marketing Strategies 1978Market penetration by new innovations: The technological literature 1973Toward a Normative Model of Promotional Decision Making 1972A Measure of Brand Acceptance 1975Optimale Preispolitik bei dynamischen deterministischen Absatzmodellen 1972A Model of Intermediate Market Response 2017Eco-innovation with opportunity of licensing and threat of imitation

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